| Re: What to add to my salon?
3 things to constantly try to improve:
Inventory Reduction – You are in the business of manufacturing tans, not housing people in a lobby, nor housing un-used beds in a structure. Balance your inventory and try to achieve 100% capacity, 100 percent of the time; you will never achieve that, but strive for it.
Gross margins – Always try to reduce costs and increase $/tan (many methods, but this is the end-goal)
Throughput – The velocity of the process and essentially how much you can push out in any given parameter of time you wish to benchmark. Such as: Tans/hour or Tans/day…
My biggest tip: Play with your pricing, never be satisfied; always question.
For example a bed level could have to high of a $/tan average. Sure ridiculous margins are great; however this would also limit volume. Do not modify the base price*; rather, restructure the plans to offer better discounts. Keep the value in the tan by not budging on price; instead drive up tans/month and $/month by moving more people to memberships & packages.
The key is not only in the $/tan, but continuous yearly revenue; there are many ways to achieve higher Yearly numbers, IMO the best is to focus on PPYA and drive that with EFTs.
*Unless it’s way out of whack with the rest of your line-up.
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