Salon And Spa Marketing: Dumb And Dumber-Why The Big Beauty Businesses Are Struggling, And How Small Independent Salons Can Laugh All The Way To The Bank
Despite what you read in the newspapers, it’s not ALL bad news.
From the Big End of town to the tiny end, there are plenty of reports indicating that the “recession” is patchy, uneven at best, certainly NOT a uniform slide into economic oblivion.
McDonald’s is reporting a massive 80% increase in net profit in 2008 over 2007. Spooked by the relentless reports of Armageddon on the TV news, it seems folks are hitting the fast food joints to save money on meals (and no doubt pile on some fat to carry them through the economic winter!)
Maccas made $4.3 billion in ’08, compared with $2.3 billion in ’07.
In our little world of entrepreneurial salon & spa owners, it’s a similar story, all over the world.
In Scottsdale, Arizona, Body Solutions Laser & Skin owners Dr Tim & Kanna Reilly report a staggering 500% increase in sales in 2008 over 2007, using a simple system of done-for-you direct response marketing tools and ‘sales thinking’ strategies they bought from Worldwide Salon Marketing in August 2007.
“It was a revelation,” says Dr Reilly, whose chiropractic clinic morphed into a skin care clinic over several years but had always bled them white. They were on the verge of giving up and closing their doors, until they ‘got it’ just in time and joined the WSM Inner Circle marketing & mentoring program.
Then there’s Inner Circle member Rechelle Watt, of Lamonde Hair Face & Body in New South Wales, Australia. While the majority of salon owners whine about how tough things are, Rechelle and hundreds of other Inner Circle members is going from strength to strength.
In ’08, a 40% increase in sales over ’07, according to an email from Rechelle this week.
“WOW!!!….. it’s AMAZING how my business has changed,” says Rechelle, echoing the sentiments of her fellow IC Members. Click here to read Rechelle’s full story.
(Members Only: want to copy what Rechelle’s done? Log into the Members Only section and navigate to ‘Getting New Clients – Hair’ and you’ll find the newspaper ads and the text messages Rechelle used to generate an extra $109,509 in sales in 2008)
And they do it using simple, hard-nosed, “ugly” copy-intensive emotional direct-response marketing, contained in the Essential Salon Owner’s Marketing Toolkit and the coaching they get as Inner Circle members – not the unaccountable, ‘imagey’ expensive branding-style-lets-hope-some-of-it-sticks marketing typically rolled out by big dumb companies using other people’s (eg shareholders’) money.
Big companies in the beauty business are as guilty of pouring useless advertising dollars down the ‘branding’ toilet as anybody else at the top end of town.
Take the giant Regis Corporation, owner of such brands as Cost Cutters, Super Cuts and Hair Club for Men and Women, Regis spend gazillions last year in an up-market makeover of its newly-purchased 635-store Trade Secret chain of salons, attempting to ‘European-ize’ them as a means of selling more bottles of beauty glop.
It was clearly money down the drain. This week Regis folded its Trade Secrets tent, announcing it was ‘selling’ the brand to Premier Salons Beauty Inc.
The word ‘selling’ is a euphemism for actually giving it away. Regis will get precisely zero, nada, zilch for the ‘sale’, instead picking up some tax credits on all the money it’s flushed down the drain on its worthless branding exercise.
All of which just goes to show, dear salon owner, that the ‘geniuses’ running these billion dollar product suppliers and salon chain owners are certainly no brighter, and in many cases a lot dumber, than you the small independent salon owner.
So take heart. If hundreds of our small-time independent salon Inner Circle members can actually increase sales in this deep recession, so can you.
If, of course, you’re equipped with the same marketing & sales tools and coaching.
Note to US and Canadian salon owners: successful IC members Dr Tim & Kanna Reilly of Body Solutions in Scottsdale, AZ are Worldwide Salon Marketing’s first USA franchise, and are handling all coaching for new North American members as of January 2009.