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Sunday, July 22, 2001

Small steps will help boost your bottom line




By Rhonda Abrams
Gannett News Service

        The other day on an out-of-town trip, I needed an emergency pedicure. Yes, there is such a thing as an emergency pedicure, especially if you're a woman going to a special event with a new pair of open-toed shoes.

        As a result, I spent an hour in a small salon. Since the salon didn't have any magazines, I spent the time thinking of ways that its owners — or any small retailer — could increase business.

        First, let me tell you what this shop was doing right:

        • Its business name clearly identified what it offered. When I looked in the Yellow Pages and saw a name like “Main Street Nails,” I knew it would offer what I needed and was conveniently located. I focused on it rather than trying names such as “French Connection” or “Allure.”

        • It enticed me to buy more by attractively pricing a package of two services. I came in for a pedicure; since a pedicure was $25, and a manicure and pedicure together were only $35, I decided to spring for both.

        • It had enough staff and flexibility to handle my business. Each of the other salons I tried had only one manicurist, and they were all booked solid. This store had three people working, so they could manage to squeeze me in.

        Nevertheless, there seemed to me a number of simple things it could have done to significantly increase income. If you're in a retail or service business, you might want to try some of these as well:

        • Court potential referral sources. Hotels are a perfect source of referrals for hair salons, spas, nail boutiques and other personal care services. Yet, when I asked at the front desk of my hotel, it didn't know the names of any. Had the owner of the manicure store regularly dropped off business cards to the major hotels, perhaps even given some of the staff free manicures, they would have known the company's name. Figure out who could send business your way and keep in touch.

        • Be visible. Customers have to find you. Some of the most effective ways to be seen include having a well-trafficked location, good signage, an ad in the Yellow Pages, and a regular ad in the local newspaper.

        • Develop a mailing list. I suspect this shop had no way of getting in touch with its customers. It certainly didn't ask me if I wanted to be included on its mailing list. With a mailing list, it could have sent a reminder card to any customers it hadn't seen in a while, let customers know of special promotions and, if it ever changed location, tell customers how to find it. One of the biggest mistakes most small companies make is failing to stay in touch with customers.

        • Give reminders of possible “second sales.” Most of the nail salon's customers come in for more than an hour a week for manicures. But they don't get reminded of other ways to spend their money. The owners could have easily prompted customers with small signs saying things like “Looking for a gift? We sell gift certificates.” “Treat yourself right — try a pedicure.” “Take your color home — we sell nail polish.”

        • Make your space inviting. In most businesses, you want to keep your customers around as long as possible. The longer they linger, the more they'll usually spend. (Not always, of course; some companies want to get customers in and out quickly.) In any case, you want customers to enjoy coming to you.

        I wouldn't have been eager to return to this salon. While it was clean, the smell of acrylic nails was overpowering, and the owners made no attempt to decorate. Look around at most small establishments; you'll be amazed at how few have bothered to provide a visually interesting or inviting space. But that's also part of merchandising.

        The above steps would have cost very little, yet they might result in significant increases in sales. So take an hour, soak your toes in hot water, look around and think about a few ways you, too, might add to your bottom line.

        For free business tips, write Rhonda Adams at 555 Bryant St, No. 180, Palo Alto, CA 94301.

       



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