Latest / Salon Success Secrets — The podcast for salon owners who are done hustling harder and ready to break their revenue ceiling. / Myth Busters: Salon Edition

Transcript

Myth Busters: Salon Edition · Salon Success Secrets — The podcast for salon owners who are done hustling harder and ready to break their revenue ceiling.

• 0:32
  Speaker 1: Imagine this you log on to Instagram and you discover that every commission salon in North America and the world at large is shutting down.
• 0:44
  Speaker 1: Okay, now, the reality is that's a myth.
• 0:48
  Speaker 1: So that's what we're going to be diving into today.
• 0:51
  Speaker 1: We're going to be diving into Mythbusters Salon Edition.
• 0:56
  Speaker 1: Diving into Mythbusters Salon.
• 0:57
  Speaker 2: Edition.
• 0:57
  Speaker 2: Yeah, and so you might've.
• 0:58
  Speaker 2: Like Lindsay was saying, you've probably seen some of these things on Instagram.
• 1:04
  Speaker 2: Actually, someone said I'm in a class that we were, my team was in the other day and almost died inside.
• 1:07
  Speaker 2: She was just kind of sprinkling fear, you know, you've ever been in a class and someone was like we got to stick together so salons don't die out Like I.
• 1:13
  Speaker 2: Just like that just sprinkles fear into the audience, where we like to sprinkle more love into the audience.
• 1:18
  Speaker 2: So we're just going to take some myths that we've heard and we're going to like bust them and look at it from a different perspective and a new opportunity.
• 1:26
  Speaker 1: Yes, okay, so let's dive right in myth Number one salons are dying.
• 1:32
  Speaker 1: You know this is one of our favorite myths that we see everywhere all the time.
• 1:37
  Speaker 1: So you know.
• 1:38
  Speaker 1: The myth is that, you know, brick and mortar salons are fading due to shifts in technology or market trends, or entrepreneurial seizures or whatever the reason might be.
• 1:49
  Speaker 1: There are so many statistics showing that the commission salon industry is alive and well and more booming than ever, in fact, one of the biggest wholesalers nationwide.
• 2:06
  Speaker 1: That rhymes with cause.
• 2:07
  Speaker 1: I'm not sure if we can say it.
• 2:08
  Speaker 1: Kalon Smentrick, I'm just kidding.
• 2:13
  Speaker 1: Do you like my rhinomology?
• 2:17
  Speaker 1: You know they really just shifted their whole market perspective.
• 2:19
  Speaker 1: You know they're like hey, we're no longer sending in sales reps to, you know, booth rental or suite salon situations.
• 2:26
  Speaker 1: We are only going to work with commission salons that have a team.
• 2:30
  Speaker 1: That's where we're going to spend our time, because what they recognized is that 80% of the money is being earned by 20% of the market, and so why don't we focus our efforts in these areas to continue to help them grow?
• 2:46
  Speaker 2: Yeah, yeah, so that myth is busted.
• 2:49
  Speaker 2: Let's move on to myth number two.
• 2:50
  Speaker 2: I saw a video on this the other day.
• 2:53
  Speaker 2: A salon coach was saying that your payroll to gross sales can be 65%.
• 2:58
  Speaker 2: So that means, of all the income that you bring in, 65% is going to just payroll.
• 3:06
  Speaker 2: So if you imagine that that leaves 35% left, that's it.
• 3:13
  Speaker 2: And so that's no products bought, that's no rent paid, that's no, nothing.
• 3:19
  Speaker 2: And so, like what we know, it's hard to create a scalable, sustainable business when your payroll sitting at 65% of those gross sales and like so we know we often want to get, we like to look at it from our cost of goods sold, which is going to include payroll, it's going to include merchant fees, it's going to include a few other things too, but we want that to be 60%, so that includes more than just payroll.
• 3:42
  Speaker 2: And so like, wow, we, what we know is when we work with salons and we see that anything of their cost of goods is higher than, like, 65%, which includes more than just payroll, then we often see the salon struggling, we see them in the red.
• 3:55
  Speaker 1: Yeah, so myth busted.
• 3:58
  Speaker 1: All right, let's move on to myth number three, which is no one wants to work.
• 4:04
  Speaker 1: You know, this is something that we hear often.
• 4:07
  Speaker 1: We see inside of chat rooms.
• 4:08
  Speaker 1: Wherever you might be hanging out, you've probably heard somebody say no one wants to work.
• 4:15
  Speaker 1: You know, but the truth here is like we really just need to dive into what it is that motivates today's workforce.
• 4:22
  Speaker 1: You know, because, like, they truly do want an amazing work-life balance.
• 4:26
  Speaker 1: And so if your career path, you know, includes a stylist working 40 to 50 hours a week, you know that's not the life that this generation is trying to create.
• 4:35
  Speaker 1: And so, you know, when you truly switch to a business model that supports your stylists and your salon, that's when everybody wins.
• 4:45
  Speaker 1: You know, because you can offer them a flexible work schedule of, you know, 28 to 32 hours a week.
• 4:50
  Speaker 1: You know, and and you can split, shift your station so that you double up.
• 4:56
  Speaker 1: You know, the opportunity for the salon, so that you're still getting all of your costs covered, but you're still allowing people to to create the career.
• 5:01
  Speaker 1: It is that they salon, so that you're still getting all of your costs covered, but you're still allowing people to create the career.
• 5:04
  Speaker 1: It is that they want, so that they feel like they have that flexibility, they know that they have those growth opportunities.
• 5:09
  Speaker 1: Because you show them, hey, here's the map of where we're going to go together, like, here's our career map, here's all the opportunities I'm going to help you get to six figures and retire as a millionaire.
• 5:20
  Speaker 1: And so when you start to change the way that you're bringing people into your company, you start to realize, hey, people do actually want to work, and when you make it really simple for them to work in an amazing environment, they're actually happier than they've ever been.
• 5:34
  Speaker 2: Yeah, I know a salon owner I was talking to the other day and she said this exact same thing.
• 5:38
  Speaker 2: She said no one wants to work and I said oh, okay, so what have you done for recruiting?
• 5:43
  Speaker 2: She said, well, I went to this career fair.
• 5:44
  Speaker 2: I'm like oh, one career fair Like we forget, like when we talk about you know we are in the relationship business and it's the same thing when it comes to recruiting.
• 5:54
  Speaker 2: We've got to build that communication, that connection, that trust, and when we have that trifecta that works together the CTC is what we like to call it you know we have that trifecta that works together.
• 6:04
  Speaker 2: It gives us an understanding of you know who we're looking for and also it brings in the right people because we're growing that relationship.
• 6:12
  Speaker 1: Love that Jen Myth busted.
• 6:15
  Speaker 1: All right, let's move on to myth number four, which is huge inside of our industry right now, which is independent stylist models are the only profitable future.
• 6:24
  Speaker 1: So let's really dive into this.
• 6:27
  Speaker 1: You know, because the truth is a lot of times when somebody goes out as an independent stylist, the real reason why they do that is because they think they're going to keep more of the money that they're bringing in.
• 6:39
  Speaker 1: But the truth is there is a cost to doing business.
• 6:42
  Speaker 1: Everywhere there's going to be a cost to doing business.
• 6:46
  Speaker 1: You're also going to experience client attrition, which, inside of our industry, is about 15% on average.
• 6:52
  Speaker 1: So that means 15% of your clients, year after year, are leaving.
• 6:56
  Speaker 1: You know whether they move away, they're unfortunately pass away.
• 6:59
  Speaker 1: They move on to another stylist.
• 7:01
  Speaker 1: Whatever the reason might be, you're going to lose about 15% and you know these.
• 7:04
  Speaker 1: A lot of times people as an independent stylist think I'm going to go out, I'm going to capture the other half of the money, but they don't realize like, hey, this is actually why the salon has a marketing budget.
• 7:12
  Speaker 1: This is, you know why they're, you know, creating a marketing machine.
• 7:16
  Speaker 1: There's just so many things to take into account, um about you know why that isn't actually the truth.
• 7:26
  Speaker 2: Yes, I, that's myth is busted period.
• 7:30
  Speaker 1: I don't have any words after that.
• 7:31
  Speaker 2: It's so good, um, because like really, it's that 80, 20 rule again too, and it's like you were saying earlier, like 20 or 80% of the income is coming from commission salons and we make up 20% of the business model, and so like that's just so, so huge and so when we, oh, go ahead, oh no, I was just gonna say, and I also think you know, people forget the value and the power of team.
• 7:53
  Speaker 1: You know, because, like, you can't do everything, like if you, you know, are the one who's washing all the towels, if you're answering the phones, if you're, you know, if, hey, you have a merchant issue, you got to call the merchant.
• 8:04
  Speaker 1: You're doing, you know, the, the advertising, all of this it starts to eat up your time.
• 8:10
  Speaker 1: And so when you can also show your team, hey, you know you're making the most per hour here than if you were on your own.
• 8:17
  Speaker 1: Because if you, yeah sure you could go out on your own, you might be able to capture one or 2% more, because maybe you wouldn't spend it on advertising.
• 8:23
  Speaker 1: But hey, come back to me in two years and tell me if you're making any more money.
• 8:27
  Speaker 1: Um, because evidence shows inside of our industry that when people go out booth rent out of a team-based salon, you know, especially one that you know is specifically involved in, like salon business school, you know their their income drastically reduces, you know, and so so, really, just knowing the truth about it and then seeing the statistics of how long somebody lasts as an independent stylist in our industry, just because there are so many things like, a lot of times people think they're going to capture more.
• 8:53
  Speaker 1: But if you show them, hey, you're not going to capture more.
• 8:55
  Speaker 1: Um, you know, and it's not right or wrong Like, hey, some people do, just you know, need to be out on their own.
• 8:59
  Speaker 1: It's.
• 8:59
  Speaker 1: It's no judgment, but the truth is, you know, a team-based salon is the profitable future for every single person involved.
• 9:08
  Speaker 1: The stylist makes the most money, you know, just the whole team.
• 9:11
  Speaker 1: It's a win, win, win.
• 9:13
  Speaker 2: Yes, and, if you can tell, we get really excited about this because we're we're on a movement for the people in our industry to do the right thing, because I think when people in our industry do the right thing, you know the world sees us in a different light and they see what we're truly fully capable of.
• 9:27
  Speaker 2: So I love that we just busted that myth.
• 9:29
  Speaker 2: Let's move on to myth number five, which is salon retail is dead, and so you know you've probably heard this before like, well, I'm not even going to try because they're just going to look at Ulta anyway, or well, I saw the client in my chair as soon as I mentioned the product.
• 9:46
  Speaker 2: She was already scrolling on, you know, Amazon, and so, like, I feel, like that is that is definitely a myth, because if you're truly providing value to a guest, showing them how to use products, showing what's the benefit of the products for them, like they are going to feel that connection and they're going to want to purchase for them.
• 10:07
  Speaker 2: Because I do know that there's a difference between a buyer and a believer, and when you make someone in your chair a believer in what you have to offer them, like that's when you have loyal clients forever.
• 10:18
  Speaker 1: Boom Jen, a buyer and a believer, just dropping some beats on us today.
• 10:23
  Speaker 1: I love that.
• 10:23
  Speaker 1: It's so true, you know and really creating that offering and creating the space where people want to buy.
• 10:30
  Speaker 1: They have the desire to do business with you because you know you're upgrading their life in so many out of today.
• 10:42
  Speaker 1: To think beyond the myths that you see inside of our industry all the time and really get clear on what the actual data is showing and what the truth can be for you.
• 10:57
  Speaker 2: Awesome, until next time when we bust some more myths.
• 11:01
  Speaker 2: We'll see you soon.