PARTY season

With the busy festive season approaching, vouchers and offers can be a great tool, but only if you manage them in the right way, writes Hellen Ward

At the time of writing, we are yet to discover what the Autumn Budget has in store. Rumour has it that changes to VAT (a reduction of the threshold) may be afoot – to be honest, I can’t imagine how else they might fill the £22 billion black hole in our economy. If this happens, with many people now working in a self-employed capacity, it will greatly affect our sector. Nobody has a crystal ball, but the witchy instinct in me tells me that there is little else left to raise the coffers to sufficient levels.

And with all indicators pointing to other taxes remaining the same, I can’t see how else Rachel Reeves can top up the country’s piggy bank. If I am right, I wonder what impact this will have on inflation, with SMEs and self-employed contractors having to raise their prices to cover their HMRC bill. We shall see.

One thing is for sure, we are approaching our busiest time of year. The Black Friday tradition that originated from the USA and Hong Kong has become ingrained in our culture. So, how can salons capitalise on something that has become an online phenomenon? How does this consumer demand translate to the services we offer?

We’ve long given up trying to compete on retail. With so many “professional only” brands now sold online direct through the big players, it’s not just difficult to compete, it’s impossible. There comes a time when you must throw in the towel. The bigger the brands, the more likely they are to find a route to market that bypasses the traditional salons that have made their professional brands a cult in the first place. We have no choice but to suck it up. It’s not going away. So, what can we do instead to get a share of the customer purse? The one thing unique to every salon owner, that they can sell directly to their customers without anybody else getting involved, is their services.

Service first

We created a Black Friday Gift Voucher offer some years ago that has become an integral part of our November turnover. A client buys a gift voucher to the value of their choice, and we effectively add 20% to its face value. Many loyal clients love this and use their credit throughout the year on services (and products if they wish). It’s a great way to bank some loyalty and give them something in return.

Not only that, but the VAT is only payable on redemption, not at point of sale. We win by retaining their loyalty and they win by getting some discount for their muchvalued custom. And the best thing? They can’t buy the gift vouchers from anyone else – and they can buy them through our online shop and in our salon. We promote it in the salon and via our Instagram and social media.

Some salons don’t offer gift vouchers, and I think they are missing a trick. A loved one can’t go wrong in buying a gift for a loyal salon devotee. Research suggests that a small percentage of people don’t ever redeem gift vouchers, which although not ideal for the business concerned (why are they not coming for your service or product?), certainly is an advantage financially. So, if you haven’t experimented with this, give it a go. You can most certainly manage it internally. Even if your software doesn’t have the functionality or you don’t use a booking system, you can record the voucher with pen and paper and manage it manually (the good old-fashioned way). You can get creative with how you offer it too by creating bundles and courses. Do get in touch with me and let me know how you get on if I’ve inspired you to experiment.

“We win by retaining CLIENTS’ LOYALTY and they win by getting some DISCOUNT for their MUCH-VALUED CUSTOM ”

Package it up

Party season itself also brings an opportunity to create some fun packages and bundles. Our Desk to Dancefloor deal is designed to appeal to those getting ready for a night on the town. And Christmas packages are a great sell – Mother to Be, Hen Do Ready, Honeymoon Prep and Couples Massage are all popular for someone stuck for a gift. The success of these packages often depends on how you market them. Socials are great, but you can’t beat the in-salon signage we use on every section, treatment room, our bar, waiting area and reception, as well as the back of the toilet door (think of going to the loo in the pub – there’s always a promo on the back of the loo door). We create the artwork internally, print off the promo, and stick it out around the salon for all to see and it works a treat. A5 acrylic frames mean you can change it up every few weeks.

As an old-fashioned girl, I like to ensure my marketing is clear and precise, so my golden rules are to follow the what/when/why/how maxim:

• What: what are you offering? Don’t assume people will understand what the treatment or deal is.

• When: start and end date, and days and times that it is available.

• Why: hook people in with the “why do I need it?” message.

• How: explain how to get it – online, in salon, etc.

And finally? Keep it simple. One offer at a time (too many is confusing and looks desperate). The best marketing is brief and direct. Short and to the point (or rather bullet point!). Run it for four to six weeks only so you can clearly track the success, and with the case of Black Friday, maximum one week.

Planning to capitalise on our busiest time is just plain common sense, and not only a great way to sure up the coffers for 2025, but a way to give our clients something back too. A little thank you always goes a long way, after all.

Hellen Ward is managing director of Richard Ward Hair & Metrospa in London, vice president of The Hair & Beauty Charity and co-founder of Salon Employers Association (SEA).