You can’t create a better future without understanding your past, right?
When looking at your Financial Year for 22-23 and beginning to set goals, targets, raise prices, introduce new treatment/cut current treatments or retail products, it’s much more effective when you’re working from a place of knowledge and clarity.
That’s why right now is the PERFECT time to take a look at your figures over the past year and get clear on what IS working for you and what’s NOT working for you, so you can best set yourself up for success in the new financial year.
The first step is to figure out what your highest performing ‘front-end’ service is, and then what your lowest performing service is – once you have that, you can map out 2-5 high-end income services and 2-5 low-end income services, with your middle/reliable/consistent services that you’re doing all the time.
Once you’re super clear on what’s bringing in the most money on the front-end, take a look at your back-end sales off that. For most of you, your biggest back-end sellers will be facials as you’ll sell more retail & be able to up-sell into facial packages (moving them from a basic facial into more of a med-facial or a medi-treatment etc).
So, let’s say you’ve built your business up on waxing and nails & now you’ve recently introduced facials – you might find you make a lot more money in the long-run on those facials but you just don’t have enough new clients coming through your doors for it to be your highest performing service.
For example, you might only have a certain number of hours during the day and they’re all for your waxing and nail clients, and you know that if you replaced a few of those with facial clients, you’d be making double the amount of money.
SO, if you can get clear on that; you can then be LASER focused in the new financial year on getting new clients through the doors for facials in particular, because you KNOW that’s going to be your leverage point.
Now, let’s chat a bit about Retail, Packages & Retention.
Start by taking a look at what your highest achieving retail products are & what your lowest achieving products are.
Your highest achieving retail products are usually a skincare range or a popular serum /cleanser offered in an intro-pack for clients to trial. Once you’re clear on what these are, it’s super important that you’re setting your stocking system up to ensure you’re ordering higher numbers of those products – preventing them from going out of stock and disappointing your clients + losing the sale.
When it comes to your lowest achieving products, they’ll usually be things like luxury body scrubs & body butters, since they’re not typically a solution-based product, meaning they’ll probably sit on the shelf for a lot longer & end up costing you money.
So when you’ve pin-pointed what these products are, decide whether you want to remove them completely from your retail range, to save yourself the energy/money to order them, OR whether you’re going to start educating your clients & selling that product more (providing you believe in it).
As mentioned above, figure out what your highest performing services are when it comes to retail sales (usually facials) & then start increasing the amount of clients you have coming through the doors for that service on the front end, to allow you those larger back-end sales for more income opportunities!
On that note – the same goes if you currently offer bulk-buy packages. Take a look at the front-end service of those packages that enable you to sell the most retail on the back-end. If you don’t currently offer bulk-buy packages, NOW is the time to start looking at what your clients might be interested in and what customisable packages you can put together for them.
What all of this does is allows you to leverage your time to create more income each day. For example, let’s say you can fit in 5 facials per day day which each bring in $90-$150 – but each of those then allow you to sell $400 worth of intro-packs & $200 worth of skincare to take home.
Which then brings us to increasing your retention. If a brand new client comes in & they buy your intro-package (providing you have it ready to go & you’ve done your marketing really well), you’re then able to transition them into 3 more facials, resulting in 4 visits in total.
Now, they may not buy retail products from you right away, BUT they now have several appts booked with you which gives you time to build trust/rapport with them & learn more about their specific needs.
So, the goal here is to figure out what your best performing service is on the front-end AND the back-end, in order to increase retention, sell more retail as well as getting incredible results for your clients – if they’re buying 3-10 treatments with you, they’re going to see a massive transformation in comparison to 1-2 appts spread out.
By knowing your numbers & seeing where you can leverage your sales, you’re going to find that you’re able to increase your revenue massively in the new financial year (without working harder).
If knowing your numbers is not your strong suit and you’d like some guidance, I’d love to help – send me a direct message here: https://m.me/china.coyle.7 & I look forward to chatting with you!
China xx
