Economic Recovery, 2010, The game has changed

Economic recovery 2010, The game has changed

Many are happy to believe that we have hit bottom and begun the slow climb out of the economic hole that was the past year and one half. A and B salons, beware… if you plan is to enthusiastically embrace returning clients who fell off your radar screen during the downturn… You need to know… they are NOT coming back. $100 salons lost heads to $50 salons… $50 salons lost ‘em to $25 shops… and so on down the line. I heard form many chain salons exclaiming that the economic downturn was a gift. They saw new and different traffic than ever before. And they understood that if they served and supported these former bigger spenders that they could easily keep them when things improved. Many chains have done just this. These down-market shoppers have strong spending habits and LOVE to feel like they are getting a bargain. If the chain did not satisfy, they have gone looking for another… but they are likely NOT to go back to spending more than they now know they do not have to.
Upper end salons will have to master 3 things… rebooking current clients to keep them on a tight turnaround leash… and building average ticket so as to make the most of the opportunities they have… and, of course… asking, begging and groveling for referrals. Many salons got lazy in the prime years and forgot how to “work” for it.
The good news is that the basics of our business still hold up in any economy.
More on this in the coming weeks.