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REVENUE & PROFITABILITY 101

REVENUE & PROFITABILITY 101

For the majority of stylists, most salon income still comes from services, but many are missing a key opportunity to increase revenue through merchandising and simple upselling. With rising costs and more competition, relying only on cuts and colour isn’t always enough to maximise profit. Retail and add on treatments may make up a smaller part of overall profit, but they offer higher margins and help increase the value of each appointment.

By making small, natural changes within the client journey, such as recommending home care, offering treatment upgrades, and presenting products in an impactful way, retail becomes an easy extension of the service rather than a hard sell. When done well, every appointment becomes an opportunity to educate clients, improve their results, and increase overall revenue in a simple and effective way.

4 QUICK WAYS TO BOOST PROFIT

As a hairstylist, your goal is to not only deliver incredible results for your clients, but to also make a significant profit while doing so. Explained below are 4 quick top-tips to boost your profit.

1. Maximise Retention and Target Lapsed Customers

Although your salon may get a lot of clients, how many of those are regular clients who come back for regular treatments? It’s important to notice and recognise those customers who haven’t visited in over six months and one of the best way to do this is through exclusive discounts/offers. Not only does this encourage lapsed customers to rebook, it also boost your profits.

Creating a strong customer retention strategy is essential for maximising profits and building long-term loyalty. Implement initiatives such as loyalty cards that reward repeat visits, referral incentives to encourage clients to bring in friends or family, and exclusive VIP events to make your most dedicated clients feel special. Small gestures, like offering complimentary add-ons for loyal customers, not only enhance the client experience but also foster a sense of appreciation and trust. These efforts can turn occasional visitors into lifelong advocates for your salon.

2. Offer Value

As a hairdresser, you have knowledge and expertise that your clients cannot get online or anywhere else. Ensure your clients know how valuable your services are, and the personalised recommendations you can make for them. This could be through 1-1 consultations, a bespoke recommendation or a salon-exclusive treatment.

Positioning products at key touchpoints like reception desks or styling areas can encourage impulse purchases. Offering great-value product bundles or discounts on complementary items is a fast way to boost your average order values.

Also why not suggest offer promotional rates on services or retail promotions during typically slow periods. This approach can help maintain consistent revenue throughout the week and help you to fill tricky spots in your diary.

3. Introductory Offers

Have regular clients who stick to the same treatments each appointment? Why not offer your clients new treatments through introductory offers. For example, if your client currently only books for a wash and blow-dry, you could offer an intense treatment or mask for an extra cost. Not only does this then boost your profits but it allows your client to experience that extra bit of luxury with their appointment. An example of this is as below:

If you purchase an Olaplex Salon Introduction Kit for £195 you can use the products to offer standalone treatments and earn profit up to £10,500 per kit (Based on 525 applications of No.1 in colour @ £0.37p per application, when charging £20 per application).

4. Use CRM/Email Marketing

The biggest tool available to hairdressers that they rarely use is their database. Are you sending your clients effective CRM emails & texts? Samantha Cusick London sent 13 emails over 12 months to her client base and this generated £167,000 additional revenue with appointments & products.

Top tips for stimulating your clients with CRM email shots

  • Think strategically - what does a client need to know that they can't find on social media?
  • Keep it short & clear to the point
  • Tease them with new launches & excite them with new treatments and services
  • Do not send too many - 1-2 a month is enough!
  • Always include a 'call to action' for example 'book now' or 'reserve your product now'

Below is an email shot example, showing how you can add value to your clients through personalised product recommendations, followed with a clear Call To Action saying 'Shop Now', linking to your online store.

Our preferred platform for email Marketing is Klaviyo, where you can create individual email campaigns or automated flows that send once your clients have joined your mailing list.

SMS marketing can also boost profits because it allows for direct, personalised communication with your clients, leading to higher engagement and retention rates. Examples of this could be promotional offers, appointment reminders, and exclusive deals.

THE POWER OF MERCHANDISE

A professionally merchandised salon is crucial to increase sales and revenue, improve customer experience and build brand loyalty.

We have created an in-depth guide on how you can use in-salon POS and merchandising strategies to push the brands you love and showcase the most up to date campaigns and offers.

Salon Window Displays

Your salon window should reflect your brand and showcase the services and products that you offer. This can be through:

  • Highlighting the brands/products that are being used on their hair/available to purchase in salon, promoting to new and existing clients, encouraging them to purchase.
  • Showcasing services through Point of Sale Materials or digital display screens featuring your latest work, professional services available, latest hair trends and more
  • Displaying posters in a prominent location to further promote the services/brands you feature.
  • Seasonal displays can be eye catching and support any in salon seasonal campaigns or offers you have running.
  • It's important for salons to incorporate their branding into their window displays. This could include using the salon's logo, colors, and other branding elements to create a cohesive look that reinforces the salon's identity and helps to build brand recognition.

Reception/Waiting Area

The reception/waiting area of your salon is an important space that sets the tone for the entire salon experience. Here are some tips for salons to merchandise their reception/waiting area:

Create a welcoming atmosphere: 

The reception/waiting area should be warm, inviting, and comfortable. Consider using soft lighting, comfortable seating, and relaxing music to create a welcoming ambiance.

Use brand colors and logos:

Use your salon's branding elements, such as colors and logos, in the reception area to create a cohesive and memorable experience for your clients. This can help to reinforce your brand identity and make your salon more memorable.

Display your products:

Use shelves or display cases to showcase your salon's products in the reception area. This not only helps to promote your products but can also provide clients with inspiration for their next appointment. To compliment this, feature tent cards, brochures and price lists as supporting material.

Display client reviews and testimonials:

Displaying positive client reviews and testimonials in the reception area can help to build trust with potential clients and reinforce your salon's reputation.

Provide reading materials:

Provide a selection of magazines, product brochures, and other reading materials in the reception area to keep clients occupied while they wait for their appointment. Make sure to update these materials regularly to keep them fresh and interesting.

Offer refreshments:

Consider offering clients refreshments such as water, coffee, or tea while they wait. This can help to make their experience more comfortable and enjoyable.

Consider impulse purchases:

Salon-favourites in mini sizes are perfect to place in reception to encourage clients to try new brands and products that they may not have tried before.

Mirror/Salon Chair Area

The mirror/chair area in a salon is where the magic happens so it's a super important space to merchandise effectively. Here are some tips for salons to merchandise their mirror/chair area:

Use appropriate lighting:

The lighting in the mirror/chair area should be bright and flattering. Consider using warm-toned bulbs to create a cozy and welcoming atmosphere. Adequate lighting can also help clients to see the true color and quality of the products you use.

Display your tools and products:

Display your hair styling tools and products in the mirror/chair area to showcase what you're using and reinforce the value of the service. This can also provide clients with inspiration for future appointments.

Offer retail opportunities:

Consider having a retail section near the mirror/chair area, where clients can purchase products that were used on them during the appointment. This not only helps to promote your products but can also create a convenient shopping experience for clients. To compliment this, feature tent cards, brochures and price lists as supporting material.

Create a comfortable environment:

Ensure that your clients are comfortable while they're in the mirror/chair area. Provide comfortable seating and offer refreshments such as water, tea, or coffee.

Offer entertainment:

Consider providing clients with entertainment such as TV shows, music, or magazines to make the appointment more enjoyable.

Display before-and-after photos:

Display before-and-after photos of your clients in the mirror/chair area. This can showcase the quality of your work and provide inspiration for future appointments.

Retail Stands

Retail stands are a great way for salons to showcase and sell their haircare products. Here are some tips for salons to merchandise their retail stands effectively:

Use appropriate signage:

Use clear and visible signage to highlight the products and brands available on your retail stands. This can help to attract customers and encourage them to browse the products available.

Organise by category:

Organise your products on the retail stands by category, such as families, hair concern, type or brand. This can make it easier for customers to find what they're looking for and can also help to cross-promote related products.

Highlight new and seasonal products:

Use your retail stands to showcase new and seasonal products. This can create a sense of urgency and encourage customers to purchase the latest products. Top Tip: Clients eyes are naturally drawn to the centre of retail stands, place the products you most want to retail in this area for maximum efficiency.

Offer product samples:

Offer product samples on your retail stands to encourage customers to try before they buy. This can help to build trust and increase the likelihood of a purchase.

Create themed displays:

Create themed displays on your retail stands to showcase products related to a particular theme or event, such as holidays or seasonal changes. This can help to create a visually appealing display and encourage customers to purchase related products.

It is important to note that salon merchandising is encouraged to compliment staff knowledge and interaction, both being the key tools to maximise retail success. Salon Promotions offers in-salon Point of Sale, Social & Email assets and merchandsing materials. For more information please contact your Business Development Manager or call our Customer Service team on 01282 444 900 and press 1.

BRAND REVENUE STRATEGIES YOU CAN FOLLOW

Building a profit isn’t just about what you offer, but how you leverage the brands you already work with. The right brand partnerships can become incredible revenue drivers when approached strategically. By focusing on brands like OLAPLEX, Neal & Wolf, and Goddess Maintenance Company, salons can tap into proven systems that support both in salon treatments and at home maintenance, creating multiple opportunities for upselling. The key is to move beyond simply stocking products, and instead use each brand as a part of your service menu, consultation process, and retail strategy. Doing this turns trusted names into income streams for your business.

NEAL & WOLF

Neal & Wolf is a much loved, industry trusted brand, offering stylists a boutique range of high quality products at a salon friendly price point. By incorporating Neal & Wolf into your salon, you can effectively maximise both revenue and profitability through a blend of in salon services and retail opportunities. Read on for inspiration on how to make the most of it…

In-Salon Services:

  1. Incorporate Neal & Wolf’s NEW Glossing Treatment Menu as a quick yet impactful way to enhance tone, shine, and overall hair condition. These services are ideal for refreshing colour between appointments while generating additional revenue in a short service time. Top Tip: If you added the ‘Express Shine boost’ treatment to just 5 clients per day, you could earn an extra £12,000 additional revenue over a year – all from a 10 minute treatment!
  2. Offer deep conditioning and repair treatments that target specific hair concerns such as dryness, damage, or lack of manageability. These can be positioned as standalone luxury treatments or added onto colour and cutting services, allowing you to increase appointment value while delivering visibly improved results.
  3. Build a signature blow-dry and styling menu using Neal & Wolf products to create consistent, high quality finishes. By branding your styling services, you can elevate perceived value and introduce tiered pricing based on styling complexity and finish.

Retail Opportunities:

  1. Encourage full regime retailing by recommending a complete routine ‘cleanse, condition, style, and finish’, based on the products used during the service. This approach ensures clients can maintain their results at home while increasing the value of each retail recommendation.
  2. Utilise travel sizes as an effective upselling tool and a ‘try before you buy’ option. These lower commitment purchases are perfect for clients who are new to the brand or hesitant, helping to build confidence before investing in full size products.
  3. Take advantage of seasonal and limited edition launches to keep your retail offering fresh and engaging. These curated collections create urgency, support promotional activity, and provide easy opportunities to introduce clients to new products.

Maximise Revenue:

  1. Create service menus that are directly aligned with the Neal & Wolf product range, ensuring each treatment or service has a clear product connection. This not only simplifies prescribing but also strengthens the relationship between services and retail.
  2. Run promotions that leverage brand campaigns. Neal & Wolf supports salons with seasonal initiatives and merchandising materials, including value added items that can be included when buying into promotional bundles, helping you increase both perceived value and retail sales.
  3. Use your expertise to educate clients throughout their appointment, clearly explaining the purpose and benefits of each product being used. When clients understand why a product is chosen for them, they are far more likely to trust your recommendation and continue the routine at home.

OLAPLEX

OLAPLEX is widely recognised as the original and number one bond-building system in the professional hair industry, trusted by stylists worldwide for its proven ability to repair hair from within. Unlike surface level treatments that only coat the cuticle, OLAPLEX works deep inside the hair’s cortex to relink broken disulphide bonds, helping to restore strength, integrity, and overall condition. Suitable for all hair types and all types of damage such as colouring, heat, environmental, mechanical or chemical processing, it has become an essential in salon solution for protecting hair during services while also supporting long term hair health through at-home maintenance.

Use the new OLAPLEX Service Menu Builder to determine how much you should be charging for your OLAPLEX Salon Services Service Calculator

In-Salon Services:

  1. Position bond-building as an essential step within all colour and lightening services, rather than an optional add on. By incorporating it into your core pricing structure, you not only protect the integrity of the hair but also naturally increase your average service pricing while reinforcing a premium, results driven approach.
  2. Offer fully bespoke, standalone treatments tailored to each client’s individual hair and scalp needs. This could include targeted solutions for scalp health, intensive repair, deep hydration, or chelating treatments to remove build up and improve colour results/longevity. By personalising treatments through consultation, you create higher value services that feel effective, and exclusive to each client.

Retail Opportunities:

  1. Prescribe complete at home systems based on the exact products used during the service. When clients experience visible, tangible results in the chair, they are far more likely to understand the importance of maintaining those results at home, making your recommendations feel relevant, trusted, and easy to adopt.
  2. Create retail bundles at a discounted rate when purchased alongside booking a colour or treatment service. For example, a “Blonde Hero Kit” for lightened clients or a “Post-Colour Care Kit” designed to maintain tone, condition, and increase longevity. These bundles simplify decision making for clients while increasing value and driving higher retail conversion.

Maximise Revenue:

  1. Position OLAPLEX as a non-negotiable step within your colour and lightening services, reinforcing it as a standard part of your technical process rather than an optional extra. This elevates both the perceived value of your services and the level of care your salon provides.
  2. Train stylists to prescribe products with confidence and clarity, rather than simply suggesting them. Clear, personalised recommendations based on the client’s hair goals and in salon results builds trust and can significantly improves retail conversion.
  3. Ensure your salon environment reflects the brand through purposeful merchandising, clean displays, and consistent branding. A visually cohesive, “OLAPLEX-centric” space reinforces credibility, supports education, and subtly encourages clients to engage with the products both in salon and at home.

GODDESS

Goddess Maintenance Company is a modern, luxury brand designed to elevate the everyday salon experience through high quality and indulgent products. Known for its signature fragrances and beautifully presented range, Goddess focuses on the ritual of self care, transforming simple moments into something indulgent and memorable. While the products themselves deliver exceptional performance, their true strength lies in their ability to enhance the overall client experience in-salon, while also offering easy, high margin retail opportunities that feel aspirational and naturally aligned with a premium salon environment.

In-Salon Services:

  1. Integrate Goddess Maintenance Company into your blow-dry and styling services by offering it as a premium upgrade to your standard blow-dry menu. This allows you to enhance the overall client experience while naturally increasing your average ticket price through a simple, high value add on.
  2. Develop indulgent treatment menus that showcase Goddess as part of a luxury, experience. These can be positioned as standalone services or offered as add ons to colour and cutting appointments at an exclusive bundled rate, giving clients the option to elevate their visit while boosting overall service revenue.

Retail Opportunities:

  1. Ensure Goddess products are prominently displayed within your salon, particularly in high traffic areas such as the reception desk. Its premium positioning, packaging, and sensory appeal make it ideal for impulse purchases, helping to drive consistent, high margin retail sales.
  2. Create seasonal retail bundles or curated gift sets featuring Goddess products. These can be aligned with key calendar moments such as holidays or promotional periods, making them highly giftable and encouraging clients to purchase both for themselves and others.

Maximising revenue in your salon comes down to making the most of every client touchpoint. By combining service menus, recommendations, and properly merchandised retail, you can naturally increase revenue without adding pressure to your team or clients. When services and products work hand in hand, the result is a better client experience, stronger loyalty, and a more profitable, sustainable business.

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