Part of owning a salon is understanding when to discount and when to add value. Whilst both are a useful way of attracting clients, knowing when to offer discounts and when to add value to your services is the key to their success. Therefore, we’re looking at the pros and cons of both to help boost your business.
Discounting
Discounting is a wonderful way to attract sales and undercut competition in the area. For example, you can bring in new clients by discounting treatments or last-minute booking slots by promoting them on social media or sending them via SMS, as shown in our how-to video.
However, no matter how much you want to stay ahead of other businesses, discounting too much or too often will result in losing profit. It can also create an expectation that you will soon have another discount, meaning some clients will hold off booking until then. Therefore, it’s important to strike a balance and offer a discount at the right time.
The pros:
- Discounting can create a spike of sales during a quieter period
- They can encourage new clients to try out your services or retail
- Referral discounts can gain new clients and reward existing ones.
The cons:
- Discounting can create client expectations for further discounts.
- They can lessen the value of your products or services, losing you profits in the long run
- Regular discounting can damage your brand instead of helping it.
Adding value
Adding value is an ideal way of attracting clients by offering something extra with their purchase. For example, what if they received a complimentary bottle of mini moisturiser with their facial, or a free forearm massage with a premium manicure? This approach only costs as much as the products and time taken and should be more than covered by the overall pricing.
Adding value, as well as these other alternatives to salon discounts, reward loyalty rather than a quick, discounted sale.
The pros:
- An extra item or treatment that adds value gives a personal touch for clients
- Add-ons make it feel like clients are getting more than they paid for
- Add-ons reward loyalty rather than impulse, making clients feel more valued.
The cons:
- Value-adding items and services can still cost the business if not calculated correctly
- New clients may not be drawn to these as much as a straight discount
Premier Software’s systems can manage discounts on products and services when you need them. Both Salon by Premier Software® and Core by Premier Software® can also create packages and items to add value to your services. For more information, book a free webinar or presentation today.
