October 2, 2024 • 18 mins
Struggling to keep your salon afloat during the recession? Discover how to build your own resilient micro-economy and turn economic adversity into a growth opportunity. In this episode, we break down the critical differences between a recession and a depression, and share actionable strategies for maintaining a loyal clientele and managing your salon's finances effectively. By centering your efforts on controllable factors within your business, you can weather external economic pressures and continue to thrive. Learn how to recognize and adapt to your clients' needs during tough times, ensuring that your salon remains a beacon of stability and success.
We'll also dive into the importance of client retention and robust team communication. Explore how leveraging client loyalty programs and engaging your team can enhance the overall client experience. We'll offer insights on managing cash flow, creating savings plans, and investing in business growth, even when budgets are tight. By monitoring key performance indicators and fostering a supportive team environment, you can navigate economic challenges with confidence. Tune in for practical advice and proactive steps to create a thriving economy within your salon and emerge stronger on the other side.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Well, if you have been around the world for more
than five minutes, you haveheard somebody talk about the
economy, and so we are excitedto dive into today's episode,
where we are going to be talkingabout how you can beat the
recession by building your owneconomy.
Speaker 2 (00:18):
Yeah, and you know, if you're on social media and
you're in some Facebook groupsor salon owner groups and like
that's like the topic ofconversation.
I even ran into an old employeethat switched over to Booth
Rant probably seven or eightyears ago and that was the topic
of her conversation too is likehell.
But what are we supposed to donow?
The economy is so bad, Peopleare extending their appointments
(00:41):
, they're not buying as muchretail, and so today we're going
to look at it from the lens ofwhat would it be like if you can
build your own economy so evenin times of downturn, like you,
can still survive and thrive.
Speaker 1 (00:55):
Yeah, you know, because I think the key here is
that the economy may affect you,but your economy will impact
you.
And so how do you create aneconomy where you're not as
influenced by the outsideworld's economy?
(01:16):
And so I think, to us,recession is when your neighbor
loses their job, but thendepression is when you lose
yours, and so how do we umreally set up an economy to
where we're not worried aboutlosing our own?
Um and you know, we can alsohelp build that bridge to where,
(01:38):
you know, maybe you can evenbuild something so great that
you're you're not even worriedabout your neighbor losing
theirs Cause, uh, you know, Ithink when enough people get
headed in the right directionand really can start to uh
deliver massive value and makesome great change in the world,
um you're not as impacted by umjust the highs and the lows of
(01:59):
what the economy does.
Speaker 2 (02:01):
Yeah.
So before we even dive intowhat can you do about the
economy, let's first look at thewords recession and depression.
So you know the definition ofrecession is a significant
period of economic decline fromthe peak to the through of the
business cycle, characterized bydecreasing output and then by
(02:22):
rising unemployment.
So when you think aboutrecession, like yes, we're
probably seeing a little bit ofthat in our economy right now.
When you think about depression, which Lindsay was saying
earlier, you know depression isa period of drastic economic
decline characterized bydecreasing output, falling
prices and rising unemployment.
(02:43):
And what happens a lot of timesis we start to people, we start
to hear people have theseconversations and then it
becomes our story of like oh mygosh, this is happening and
we're not saying this isn'thappening at all.
Like the more of a solidfoundation and ecosystem that
you can build in your salon, themore success you will have when
we are in a recession typeframework.
Speaker 1 (03:05):
You know, and I think some some key things to note
here are you know just how doesthis relate to salon owners?
Because you know, specificallywhen there's a downturn in the
economy, some different thingsthat you can see are, you know,
maybe you start seeing fewerclients, or they reduce their
spending on services, or theythey spread out their
appointment times.
(03:25):
You know, whatever those thingsmight be, that you start to see
less of.
You also have to realize, likethis is also a time where people
want and need those servicesmore than ever.
You know, because, like, ifsomebody is starting to feel
some of those pains of recessionor depression, um, you know
which recession is.
(03:46):
You know depression is likeobviously, a more drastic,
longer period.
More people are impacted andaffected.
So, you know, recession is kindof like what would kickstart
something like that.
But so what we can do, you know, is just is really start to
focus in on like hey, you know,instead of instead of
(04:07):
automatically jumping into thatmindset of like people are
spending less or doing all thisstuff less, like starting to
realize like hey, they need memore and and really start to see
like, okay, what are some partsthat I can control and and and
start to impact, but then justnoticing like hey, pay attention
to your numbers, Like just seewhat's happening, because that
can once you, once you unveilwhat's happening, that can start
(04:30):
to kind of create that path forthe future.
Speaker 2 (04:33):
Yeah, and so we've been talking about economy.
So let's look at the definitionof economy.
We're giving you all the bestdefinitions ever.
If you ever want to look up aword, multiple heritage
dictionary is one of ourfavorites.
When you look at the word or thedefinition of economy, it says
the system of production,distribution and consumption of
goods and services.
So when you think about that,there's always going to be a
micro economy and a macroeconomy.
(04:55):
So your macro economy that'sthe big picture, like that's the
global national economies andyou know how external factors,
like recessions, can trulyimpact that.
So like, if you're seeing arecession, that's my macro, like
everyone is being impacted more.
In a micro economy, you knowthis is going to be more smaller
, more personal economic space.
So this would be like in yourhometown, in your area, and so
(05:18):
like, when you think about thatmicro economy, like that's where
you have more control of yetthings may be happening outside
of you, but when you're reallyable to dial into, you know,
building that loyal clientele,offering services and
understanding your numbers, likeLindsay was saying, managing
your financials like that's when, even when a macro economy is
not doing well, you can stillhave control of that micro
(05:38):
economy.
Speaker 1 (05:40):
Yeah, and you know, I think a good way to look at
that too, jen, is just like eventhinking about like micro
economies, like sometimes likethere's like a big distribution
center in a smaller town orsomething, for example, and if
they go out of business, youknow, a lot of people can lose
their jobs in that community,and so that really does affect
the micro economy.
And you know, kind of whatwe're seeing right now is the
(06:01):
macro economy is kind of beingimpacted just by the rise of
prices.
Right now is the macro economyis kind of being impacted just
by the rise of prices.
You know, obviously 2020,there's a lot of different
factors that kind of go intothis.
But so so thinking like, hey,these things might be happening
in the macro economy, but inyour micro economy, in your town
, you know, hopefully you'restill seeing some stabilization
(06:25):
and all of that good stuff, andso so really, that's exactly
what Jen was saying you havecontrol over that micro economy.
It doesn't matter what'shappening in the world per se,
but it does matter the impactthat you want to make.
You know about the things thatyou are in control of, you know.
And so I think, when you thinkabout what you're in control of
(06:45):
and you're in building your owneconomy and in your micro
economy is.
You know you always havecontrol over building things
like your client relationshipsYou're going to always have
control over.
You know working on your teamproductivity.
You know offering some uniqueofferings, like really dialing
(07:06):
into what it is that you do havecontrol over, because you don't
have control over the world.
If you did, that would be great, like we can probably sprinkle
some amazing things in there andmake some magic happen.
You know, but like you do havecontrol over that macro economy
and micro economy andspecifically, if you really dial
that micro and even further,you do have control over what's
(07:26):
happening inside of your wallsand so you can set up that
context and and start to createyour own ecosystem so that you
can build something amazing.
Speaker 2 (07:37):
Yeah, and you know, I just love, like when you think
about being a salon owner too,because if you have a large
database, or even if you don't,like, there's still people in
your database that you haven'tserved in a while.
So, like, a lot of times whenwe go through a recession,
people will, like, pump thebrakes on marketing and, like I
like to look at it through thelens is like this is the time to
dial up, like, turn it up,let's pump it up.
(07:58):
It's time to turn up themarketing.
And so, like, you can turn amarketing without even spending
a lot of money just by using thedatabase that you have.
And so some things that we'vedone in our salon, too, is like
really nurturing the guests thatwe haven't seen in 90 to 180
days, you know, doing a dripcampaign to give them so much
value and to love on them and toshare knowledge on them that
they're not getting anywhereelse, that you know, in turn,
(08:20):
when they are able to get intothe salon or when they're ready
to get in the salon, we're goingto be top of mind for them.
Um, you know other ways tonurture, like if you guys have,
uh, if you are members of maya,which is meet your uh stylists
or meet your artists I know alot of salons do that where it's
a matchmaking quiz which takesa consumer, matches them with,
like the three top stylists inyour salon.
Like right now they weregetting one email.
(08:43):
Now we've been able to, likecreate a series of drip
campaigns to nurture them, likea seven email campaign where
we're giving them value, we'retalking about the biggest
mistakes that people make withtheir hair and skin, and so like
.
When you're in this recession,this is the most perfect time
that you can really amp up yourmarketing and give so much value
that you'll see that valuereturn on you.
(09:04):
10 X.
Speaker 1 (09:05):
Yeah, you know, and, jen, I think this is what's cool
when we do start to see someshifts like this instead of the
economy, is that a lot of times,you know people that have been
in you know booth rentalsituations or small salon
situations start to look to getback to um, a larger salon
company like you know, the onesthat we serve that are part of
salon business school and thePhD program.
Um, you know, mostly justbecause, like, you do have that
(09:28):
large client base and you arespending your time and efforts
on marketing, because I thinkthere's a stark difference
between, you know, loving onsomeone, giving them value,
versus you know, I got onSnapchat not long ago and I saw
a stylist posted a picture oftheir receipt and was like, I
just spent $600 at the beautysupply store.
You know, and, um, you know, asa consumer, if you were to see
(09:51):
marketing like that, you wouldbe so confused, you know you'd
be like okay, is that a lot ofmoney?
Is that not a lot of money?
Like, um, am I supposed to feelsorry for them?
Like, how am I supposed to evenfeel when I see this?
Like it just creates a lot ofconfusion?
And so, you know, a lot oftimes like, um, people who are
in those situations where it'sjust them, they don't, they're
(10:11):
not surrounded by anybody whocan help them see a bigger
picture and and and be resilientin times like this, cause this
is really where resilience, youknow, is your best friend.
Um, you know, and we do startto see some of those shifts,
like people are wanting to getback into those commissioned
salon environments because theystart to see, like, all of the
(10:32):
value that they get in being ina team based environment.
Like that, you know, and so Ithink that's also just a great
thing.
You know, even just talkingabout that Maya survey, you know
, when you're looking to nurturethose guests, like inviting
them, like, hey, you know, um,are you looking to break up with
your hairstylist?
That's an email that, uh, wejust recently sent out, um, and
(10:55):
truly, you know the.
The.
The thought process behind thatwas that, like nobody owns
clients, like we want to earnyour business all of the time,
like here are, you know, likeyou have free reign to see
anyone you want to, and you knowwe have tons of amazing artists
here and we would love for youknow, like, you have free reign
to see anyone you want to andyou know we have tons of amazing
artists here and we would lovefor you to, to get connected to
our team and really for them tostart to feel supported by more
(11:16):
than just one artist inside ofyour business.
I think is key.
And so looking to create somesystems like that inside of your
business right now, you know,if you're feeling impacted by
the economy in any way, how dowe become an even stronger team?
Because you know this is when,like this is when those are the
people who make it and makemillions.
On the other side, like this isthe investment phase.
(11:38):
A lot of people get scared,like you were talking about Jen
and dial back on their spinningwith marketing and all these
things, but this is where youdial in even more and this is
where you come out stronger andeven more incredible on the
other side.
Speaker 2 (11:50):
Yeah, you know it's so crazy that you said that,
lens, because I was just.
I saw someone that used to workfor me.
She worked for me for a longtime 10 years.
Great person, still greatfriend, and she's been.
She's been in industry probablyalmost 20 years.
She's been on her own for aboutseven or eight years and I ran
into her and she's like I'mready to get back into a
commission salon and so you know, when you are surrounded by a
(12:13):
healthy environment, that'spositive.
That's talking about how can wemake the best with what we have
and how can we serve to adifferent degree, like people
that are in a booth, rent orsuite situation no judgment but
like they don't have all thosetools.
So like this is the time, Ithink, commission salons really
get to shine and really get todo some even more incredible
things with clients.
Speaker 1 (12:35):
Yes, I love that.
So let's talk about what aresome action steps that you can
take right away to really startbuilding your own economy.
And so, you know, I would saystep one would be to just really
focus on increasing yourclient's retention.
And so, you know, I would saystep one would be to just really
focus on increasing your clientretention.
And so, if you've never lookedat like your new guest retention
or your existing guestretention, go ahead and pull up
(12:56):
that number.
An industry statistic would be25% of new guests return into
the inside of your salon.
And so just see where you're at.
You know, just use it as athermometer.
If you're at 20%, no judgment.
If you're at 40%, that's great.
What could we do to make iteven better?
If you know, and so you canreally start to dial in on what
(13:18):
does your experience look likewith that guest from start to
finish.
What are some things that youcan do to kind of amplify the
service that you're giving orthe experience that they are
receiving even more?
The service that you're givingor the experience that they are
receiving even more?
How can you engage moreteammates in to to increase that
loyalty?
You know, because people loveto feel loved on by multiple
people.
Like if you go into a businessand you know one person, that
(13:40):
feels great.
But if you know multiple people, they know you by name, like
you're like a client for life,you know, and so, like, how can
we create that inside of ourbusiness?
You know, this morning I justran into somebody that I hadn't
seen for a little while and Isaid, you know, thank you so
much and enjoy, you know,getting your hair done today.
And she was like, you know, Iwouldn't go anywhere else.
Like, what you guys arebuilding here and what you do as
(14:03):
a team together is incredible.
And, you know, I just wouldn'twant to spend my time or energy
anywhere else and I just thoughtthat is so cool to see.
You know, because I looked ather history then after she said
that and she'd seen multipleservice providers you know, some
that are still with us, somethat you know have moved on to
other opportunities and just forher to recognize, like, hey,
this is the environment that Iwant to be a part of, lets me
(14:25):
know.
Like, hey, our, you know,efforts in building that client
retention are working, and sowhat can we do to make it even
better if you know so.
Sometimes it's like loyaltyprograms or you know a reward
system for referrals, you knowwhatever that might be.
Just really dial in on how canyou increase that client
retention?
Speaker 2 (14:45):
I love that.
Another action step to take isto communicate things with your
team.
You know they're watching thenews, they're seeing social
media, they're freaked outbecause all they hear is
everybody's losing their job,there's no money, there's no
this, there's no that, and so,like like yesterday at our salon
celebration, like we trulycleared the word economy and
then we also just looked at hey,this is what we have in place
(15:05):
to help build our ecosystem,this is the database we have,
these are the new technologieswe're putting into place, this
is how we're nurturing moreguests.
And you could just feel like,you know, some of them were so
kind of tight when you evenstart mentioning the word
economy that their bodies justkind of loosened up because they
knew that we have a plan inplace.
And so I think it is veryvaluable to communicate with
(15:26):
your team the plan that you havein place, that's how you have
control of that micro economy,that's your economy, so that
they get enrolled and can helpmake everything better too.
Speaker 1 (15:36):
Yes, and you know.
Another step that you can takeis just to start to build some
financial resilience.
You know, and so, really, youknow, looking at how you can
manage your cashflow, you know,coming up with some sort of like
a savings plan but also stillcontinuing to invest in your
salons growth, you know.
So the last thing that you wantto do is cut back on every
(15:58):
single thing.
Like you know, there are somany things that you can do that
don't cost you a dime.
You know, like learning eachguest's favorite drink, you know
, like, uh, when they know thatthey're going to be greeted with
that, like when they come in,man, they feel special.
Or looking up people on socialmedia before they come in, just
(16:18):
to really get to know their nameso that when they come in, you
can say hi, jen, welcome back,it's great to see you.
You know, we've been lookingforward to your visit.
People need that love andconnection more than ever right
now.
And that's free and it doesn'tcost you a dime.
You know, and so, but lookingfor ways to build that financial
resilience is huge Monitoringyour, your key performance
(16:38):
indicators, seeing you know kindof what that cashflow is doing,
and then just having some sortof a savings plan, um, you know
um, and just having that, thatforward thinking mindset in
place right away can really helpyou be feel like you're in a
good spot through anything.
Speaker 2 (16:57):
I love that, yeah, because a lot of times we tend
to live in fear.
At this moment, just workingwith one of my commercial
tenants, like their sales aredown and they want to start
cutting employees.
Cutting employees, I'm likejust an idea would be instead of
cutting employees, let's pumpthe brakes and let's look at
your sales process, let's seehow we could improve your sales
process.
And so I think we, if you livein that place of fear, like your
micro economy is going to comecrumbling down, micro economy is
(17:22):
going to come crumbling down,and so, like we just really
invite you to to understand,like, what is recession, what is
depression, what is economy,and how, what are you doing?
Um, to you know, really haveample opportunities to create
your economy, not just theeconomy.
Speaker 1 (17:34):
I love that.
So, um, if you've gotten someamazing value out of today,
please share it with one of yoursalon owner friends.
We would love to meet you orhear from you.
You feel free to email us,hello, at salon business
schoolcom.
Um, you know, and just starttaking a step today, you know,
communicating with your team,whatever that next step for you
might be, because the economymay affect you, but the economy
(17:58):
you build will define yourfuture.
So keep building it strong.
Well, if you have been around the world for more
than five minutes, you haveheard somebody talk about the
economy, and so we are excitedto dive into today's episode,
where we are going to be talkingabout how you can beat the
recession by building your owneconomy.
Speaker 2 (00:18):
Yeah, and you know, if you're on social media and
you're in some Facebook groupsor salon owner groups and like
that's like the topic ofconversation.
I even ran into an old employeethat switched over to Booth
Rant probably seven or eightyears ago and that was the topic
of her conversation too is likehell.
But what are we supposed to donow?
The economy is so bad, Peopleare extending their appointments
(00:41):
, they're not buying as muchretail, and so today we're going
to look at it from the lens ofwhat would it be like if you can
build your own economy so evenin times of downturn, like you,
can still survive and thrive.
Speaker 1 (00:55):
Yeah, you know, because I think the key here is
that the economy may affect you,but your economy will impact
you.
And so how do you create aneconomy where you're not as
influenced by the outsideworld's economy?
(01:16):
And so I think, to us,recession is when your neighbor
loses their job, but thendepression is when you lose
yours, and so how do we umreally set up an economy to
where we're not worried aboutlosing our own?
Um and you know, we can alsohelp build that bridge to where,
(01:38):
you know, maybe you can evenbuild something so great that
you're you're not even worriedabout your neighbor losing
theirs Cause, uh, you know, Ithink when enough people get
headed in the right directionand really can start to uh
deliver massive value and makesome great change in the world,
um you're not as impacted by umjust the highs and the lows of
(01:59):
what the economy does.
Speaker 2 (02:01):
Yeah.
So before we even dive intowhat can you do about the
economy, let's first look at thewords recession and depression.
So you know the definition ofrecession is a significant
period of economic decline fromthe peak to the through of the
business cycle, characterized bydecreasing output and then by
(02:22):
rising unemployment.
So when you think aboutrecession, like yes, we're
probably seeing a little bit ofthat in our economy right now.
When you think about depression, which Lindsay was saying
earlier, you know depression isa period of drastic economic
decline characterized bydecreasing output, falling
prices and rising unemployment.
(02:43):
And what happens a lot of timesis we start to people, we start
to hear people have theseconversations and then it
becomes our story of like oh mygosh, this is happening and
we're not saying this isn'thappening at all.
Like the more of a solidfoundation and ecosystem that
you can build in your salon, themore success you will have when
we are in a recession typeframework.
Speaker 1 (03:05):
You know, and I think some some key things to note
here are you know just how doesthis relate to salon owners?
Because you know, specificallywhen there's a downturn in the
economy, some different thingsthat you can see are, you know,
maybe you start seeing fewerclients, or they reduce their
spending on services, or theythey spread out their
appointment times.
(03:25):
You know, whatever those thingsmight be, that you start to see
less of.
You also have to realize, likethis is also a time where people
want and need those servicesmore than ever.
You know, because, like, ifsomebody is starting to feel
some of those pains of recessionor depression, um, you know
which recession is.
(03:46):
You know depression is likeobviously, a more drastic,
longer period.
More people are impacted andaffected.
So, you know, recession is kindof like what would kickstart
something like that.
But so what we can do, you know, is just is really start to
focus in on like hey, you know,instead of instead of
(04:07):
automatically jumping into thatmindset of like people are
spending less or doing all thisstuff less, like starting to
realize like hey, they need memore and and really start to see
like, okay, what are some partsthat I can control and and and
start to impact, but then justnoticing like hey, pay attention
to your numbers, Like just seewhat's happening, because that
can once you, once you unveilwhat's happening, that can start
(04:30):
to kind of create that path forthe future.
Speaker 2 (04:33):
Yeah, and so we've been talking about economy.
So let's look at the definitionof economy.
We're giving you all the bestdefinitions ever.
If you ever want to look up aword, multiple heritage
dictionary is one of ourfavorites.
When you look at the word or thedefinition of economy, it says
the system of production,distribution and consumption of
goods and services.
So when you think about that,there's always going to be a
micro economy and a macroeconomy.
(04:55):
So your macro economy that'sthe big picture, like that's the
global national economies andyou know how external factors,
like recessions, can trulyimpact that.
So like, if you're seeing arecession, that's my macro, like
everyone is being impacted more.
In a micro economy, you knowthis is going to be more smaller
, more personal economic space.
So this would be like in yourhometown, in your area, and so
(05:18):
like, when you think about thatmicro economy, like that's where
you have more control of yetthings may be happening outside
of you, but when you're reallyable to dial into, you know,
building that loyal clientele,offering services and
understanding your numbers, likeLindsay was saying, managing
your financials like that's when, even when a macro economy is
not doing well, you can stillhave control of that micro
(05:38):
economy.
Speaker 1 (05:40):
Yeah, and you know, I think a good way to look at
that too, jen, is just like eventhinking about like micro
economies, like sometimes likethere's like a big distribution
center in a smaller town orsomething, for example, and if
they go out of business, youknow, a lot of people can lose
their jobs in that community,and so that really does affect
the micro economy.
And you know, kind of whatwe're seeing right now is the
(06:01):
macro economy is kind of beingimpacted just by the rise of
prices.
Right now is the macro economyis kind of being impacted just
by the rise of prices.
You know, obviously 2020,there's a lot of different
factors that kind of go intothis.
But so so thinking like, hey,these things might be happening
in the macro economy, but inyour micro economy, in your town
, you know, hopefully you'restill seeing some stabilization
(06:25):
and all of that good stuff, andso so really, that's exactly
what Jen was saying you havecontrol over that micro economy.
It doesn't matter what'shappening in the world per se,
but it does matter the impactthat you want to make.
You know about the things thatyou are in control of, you know.
And so I think, when you thinkabout what you're in control of
(06:45):
and you're in building your owneconomy and in your micro
economy is.
You know you always havecontrol over building things
like your client relationshipsYou're going to always have
control over.
You know working on your teamproductivity.
You know offering some uniqueofferings, like really dialing
(07:06):
into what it is that you do havecontrol over, because you don't
have control over the world.
If you did, that would be great, like we can probably sprinkle
some amazing things in there andmake some magic happen.
You know, but like you do havecontrol over that macro economy
and micro economy andspecifically, if you really dial
that micro and even further,you do have control over what's
(07:26):
happening inside of your wallsand so you can set up that
context and and start to createyour own ecosystem so that you
can build something amazing.
Speaker 2 (07:37):
Yeah, and you know, I just love, like when you think
about being a salon owner too,because if you have a large
database, or even if you don't,like, there's still people in
your database that you haven'tserved in a while.
So, like, a lot of times whenwe go through a recession,
people will, like, pump thebrakes on marketing and, like I
like to look at it through thelens is like this is the time to
dial up, like, turn it up,let's pump it up.
(07:58):
It's time to turn up themarketing.
And so, like, you can turn amarketing without even spending
a lot of money just by using thedatabase that you have.
And so some things that we'vedone in our salon, too, is like
really nurturing the guests thatwe haven't seen in 90 to 180
days, you know, doing a dripcampaign to give them so much
value and to love on them and toshare knowledge on them that
they're not getting anywhereelse, that you know, in turn,
(08:20):
when they are able to get intothe salon or when they're ready
to get in the salon, we're goingto be top of mind for them.
Um, you know other ways tonurture, like if you guys have,
uh, if you are members of maya,which is meet your uh stylists
or meet your artists I know alot of salons do that where it's
a matchmaking quiz which takesa consumer, matches them with,
like the three top stylists inyour salon.
Like right now they weregetting one email.
(08:43):
Now we've been able to, likecreate a series of drip
campaigns to nurture them, likea seven email campaign where
we're giving them value, we'retalking about the biggest
mistakes that people make withtheir hair and skin, and so like
.
When you're in this recession,this is the most perfect time
that you can really amp up yourmarketing and give so much value
that you'll see that valuereturn on you.
(09:04):
10 X.
Speaker 1 (09:05):
Yeah, you know, and, jen, I think this is what's cool
when we do start to see someshifts like this instead of the
economy, is that a lot of times,you know people that have been
in you know booth rentalsituations or small salon
situations start to look to getback to um, a larger salon
company like you know, the onesthat we serve that are part of
salon business school and thePhD program.
Um, you know, mostly justbecause, like, you do have that
(09:28):
large client base and you arespending your time and efforts
on marketing, because I thinkthere's a stark difference
between, you know, loving onsomeone, giving them value,
versus you know, I got onSnapchat not long ago and I saw
a stylist posted a picture oftheir receipt and was like, I
just spent $600 at the beautysupply store.
You know, and, um, you know, asa consumer, if you were to see
(09:51):
marketing like that, you wouldbe so confused, you know you'd
be like okay, is that a lot ofmoney?
Is that not a lot of money?
Like, um, am I supposed to feelsorry for them?
Like, how am I supposed to evenfeel when I see this?
Like it just creates a lot ofconfusion?
And so, you know, a lot oftimes like, um, people who are
in those situations where it'sjust them, they don't, they're
(10:11):
not surrounded by anybody whocan help them see a bigger
picture and and and be resilientin times like this, cause this
is really where resilience, youknow, is your best friend.
Um, you know, and we do startto see some of those shifts,
like people are wanting to getback into those commissioned
salon environments because theystart to see, like, all of the
(10:32):
value that they get in being ina team based environment.
Like that, you know, and so Ithink that's also just a great
thing.
You know, even just talkingabout that Maya survey, you know
, when you're looking to nurturethose guests, like inviting
them, like, hey, you know, um,are you looking to break up with
your hairstylist?
That's an email that, uh, wejust recently sent out, um, and
(10:55):
truly, you know the.
The.
The thought process behind thatwas that, like nobody owns
clients, like we want to earnyour business all of the time,
like here are, you know, likeyou have free reign to see
anyone you want to, and you knowwe have tons of amazing artists
here and we would love for youknow, like, you have free reign
to see anyone you want to andyou know we have tons of amazing
artists here and we would lovefor you to, to get connected to
our team and really for them tostart to feel supported by more
(11:16):
than just one artist inside ofyour business.
I think is key.
And so looking to create somesystems like that inside of your
business right now, you know,if you're feeling impacted by
the economy in any way, how dowe become an even stronger team?
Because you know this is when,like this is when those are the
people who make it and makemillions.
On the other side, like this isthe investment phase.
(11:38):
A lot of people get scared,like you were talking about Jen
and dial back on their spinningwith marketing and all these
things, but this is where youdial in even more and this is
where you come out stronger andeven more incredible on the
other side.
Speaker 2 (11:50):
Yeah, you know it's so crazy that you said that,
lens, because I was just.
I saw someone that used to workfor me.
She worked for me for a longtime 10 years.
Great person, still greatfriend, and she's been.
She's been in industry probablyalmost 20 years.
She's been on her own for aboutseven or eight years and I ran
into her and she's like I'mready to get back into a
commission salon and so you know, when you are surrounded by a
(12:13):
healthy environment, that'spositive.
That's talking about how can wemake the best with what we have
and how can we serve to adifferent degree, like people
that are in a booth, rent orsuite situation no judgment but
like they don't have all thosetools.
So like this is the time, Ithink, commission salons really
get to shine and really get todo some even more incredible
things with clients.
Speaker 1 (12:35):
Yes, I love that.
So let's talk about what aresome action steps that you can
take right away to really startbuilding your own economy.
And so, you know, I would saystep one would be to just really
focus on increasing yourclient's retention.
And so, you know, I would saystep one would be to just really
focus on increasing your clientretention.
And so, if you've never lookedat like your new guest retention
or your existing guestretention, go ahead and pull up
(12:56):
that number.
An industry statistic would be25% of new guests return into
the inside of your salon.
And so just see where you're at.
You know, just use it as athermometer.
If you're at 20%, no judgment.
If you're at 40%, that's great.
What could we do to make iteven better?
If you know, and so you canreally start to dial in on what
(13:18):
does your experience look likewith that guest from start to
finish.
What are some things that youcan do to kind of amplify the
service that you're giving orthe experience that they are
receiving even more?
The service that you're givingor the experience that they are
receiving even more?
How can you engage moreteammates in to to increase that
loyalty?
You know, because people loveto feel loved on by multiple
people.
Like if you go into a businessand you know one person, that
(13:40):
feels great.
But if you know multiple people, they know you by name, like
you're like a client for life,you know, and so, like, how can
we create that inside of ourbusiness?
You know, this morning I justran into somebody that I hadn't
seen for a little while and Isaid, you know, thank you so
much and enjoy, you know,getting your hair done today.
And she was like, you know, Iwouldn't go anywhere else.
Like, what you guys arebuilding here and what you do as
(14:03):
a team together is incredible.
And, you know, I just wouldn'twant to spend my time or energy
anywhere else and I just thoughtthat is so cool to see.
You know, because I looked ather history then after she said
that and she'd seen multipleservice providers you know, some
that are still with us, somethat you know have moved on to
other opportunities and just forher to recognize, like, hey,
this is the environment that Iwant to be a part of, lets me
(14:25):
know.
Like, hey, our, you know,efforts in building that client
retention are working, and sowhat can we do to make it even
better if you know so.
Sometimes it's like loyaltyprograms or you know a reward
system for referrals, you knowwhatever that might be.
Just really dial in on how canyou increase that client
retention?
Speaker 2 (14:45):
I love that.
Another action step to take isto communicate things with your
team.
You know they're watching thenews, they're seeing social
media, they're freaked outbecause all they hear is
everybody's losing their job,there's no money, there's no
this, there's no that, and so,like like yesterday at our salon
celebration, like we trulycleared the word economy and
then we also just looked at hey,this is what we have in place
(15:05):
to help build our ecosystem,this is the database we have,
these are the new technologieswe're putting into place, this
is how we're nurturing moreguests.
And you could just feel like,you know, some of them were so
kind of tight when you evenstart mentioning the word
economy that their bodies justkind of loosened up because they
knew that we have a plan inplace.
And so I think it is veryvaluable to communicate with
(15:26):
your team the plan that you havein place, that's how you have
control of that micro economy,that's your economy, so that
they get enrolled and can helpmake everything better too.
Speaker 1 (15:36):
Yes, and you know.
Another step that you can takeis just to start to build some
financial resilience.
You know, and so, really, youknow, looking at how you can
manage your cashflow, you know,coming up with some sort of like
a savings plan but also stillcontinuing to invest in your
salons growth, you know.
So the last thing that you wantto do is cut back on every
(15:58):
single thing.
Like you know, there are somany things that you can do that
don't cost you a dime.
You know, like learning eachguest's favorite drink, you know
, like, uh, when they know thatthey're going to be greeted with
that, like when they come in,man, they feel special.
Or looking up people on socialmedia before they come in, just
(16:18):
to really get to know their nameso that when they come in, you
can say hi, jen, welcome back,it's great to see you.
You know, we've been lookingforward to your visit.
People need that love andconnection more than ever right
now.
And that's free and it doesn'tcost you a dime.
You know, and so, but lookingfor ways to build that financial
resilience is huge Monitoringyour, your key performance
(16:38):
indicators, seeing you know kindof what that cashflow is doing,
and then just having some sortof a savings plan, um, you know
um, and just having that, thatforward thinking mindset in
place right away can really helpyou be feel like you're in a
good spot through anything.
Speaker 2 (16:57):
I love that, yeah, because a lot of times we tend
to live in fear.
At this moment, just workingwith one of my commercial
tenants, like their sales aredown and they want to start
cutting employees.
Cutting employees, I'm likejust an idea would be instead of
cutting employees, let's pumpthe brakes and let's look at
your sales process, let's seehow we could improve your sales
process.
And so I think we, if you livein that place of fear, like your
micro economy is going to comecrumbling down, micro economy is
(17:22):
going to come crumbling down,and so, like we just really
invite you to to understand,like, what is recession, what is
depression, what is economy,and how, what are you doing?
Um, to you know, really haveample opportunities to create
your economy, not just theeconomy.
Speaker 1 (17:34):
I love that.
So, um, if you've gotten someamazing value out of today,
please share it with one of yoursalon owner friends.
We would love to meet you orhear from you.
You feel free to email us,hello, at salon business
schoolcom.
Um, you know, and just starttaking a step today, you know,
communicating with your team,whatever that next step for you
might be, because the economymay affect you, but the economy
(17:58):
you build will define yourfuture.
So keep building it strong.
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