Kristy Hines, Owner of Element Lifestyle Aveda, helps shine a light on why procedures and behaviours mean the promise of profit in colour doesn’t always stack.
Not All Services Are Created Equal
Not all services are created equal but, often, that’s how they’re charged. A sophisticated pricing menu might look good on paper but it doesn’t always reflect reality, possibly because it’s too complicated. In a busy salon, the team often relies on just three or four charging mechanisms, which fail to capture the full cost of product used. Differences in length, thickness, and porosity are ignored and short-haired clients end up subsidising those with longer, thicker hair by paying the same regardless of how much colour is used.
No Two Stylists Are The Same
Stylists can use varied quantities for the exact same service, without anyone being aware of the discrepancy. The problem is it’s almost impossible to monitor colour. A stylist might have no waste but still use more than necessary because they over-apply. Often inexperienced stylists are wasting the most but their prices are below the senior team, so owners need a way to identify the training gaps.
Waste Devours Profit
The arrival of technology in the colour bar has finally allowed us to monitor usage and costs, but it also quickly revealed what most owners already know – colour waste is vast and expensive. According to stats from Vish Hair Color Management Software, as much as 40 per cent of colour is mixed and then thrown away. Salons are effectively paying double for colour. However, technology provides the data we need to address the problem. Our waste is very low now and we have clarity on colour costs and budgets, so we are guaranteed profit in every service.
Missed Services Means Missed Revenue
The same attrition that can lead to bowls of colour being given away for free also impacts additional services, such as expensive toners. Stylists either forget to add them to the final bill or they don’t want to upset their client with extra charges. With a high cost, unpaid-for toners can quickly turn a service from profit to loss. Using tech means it’s no longer on the stylist to remember to charge for additional services as alll charges are automated.
Inconsistencies Creep In
For us at Element, removing the human element in record keeping was the number one reason we were such early adopters of colour management technology. Weighing how much is dispensed and then reweighing the waste gives exact amounts and then Vish automatically saves the formula to the client’s records. It also means if a stylist is off, their colleague can step in to ensure the client isn’t turned away and disappointed.
Clear On Commission
Like many salons, we pay a commission on a stylist’s income if they achieve their goals, but as the service price includes colour costs, we are effectively paying commission on a business expense. This currently works for us as our colour costs and waste are monitored and kept low by our colour management system, but in some salons, where stylists have high waste or usage and push the cost on to the client, it must be frustrating knowing you are paying more commission while they jeopardise client loyalty.
Taking Stock
Inventory management was another bugbear for me. It’s so easy to slip into carrying more than you need because ordering the same quantities every month is easier, but too much stock on your shelves ties up your cash flow. When we brought in technology we were suddenly able to order only what we used. Now, if there is a sudden demand for particular shades we notice immediately and can order in the appropriate colours while dropping others that aren’t so popular.
For more information visit www.getvish.com
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