Ward’s world
Reset RETHINK
As we enter the year of the fire horse, it’s time to gallop toward new opportunities. Hellen Ward shares a check list to help salon owners increase turnover and cut costs
Regular readers will know that I’m big into the spiritual side of life, and if you are too, you will also know that 2025 was the year of the snake, with the additional wood element bringing growth, intuition strategic planning and refinement. However, the snake is also about shedding old layers and chapters, and with the added nine (2025) numerology energy, it was a year of endings for many. But as one door closes, another opens and when the Chinese New Year starts mid-February, the new fire horse energy, (combined with the 2026 one numerology) is all about action. Galloping forward to new opportunities – we could all do with a bit of that.
Over Twixtmas (you know, that time between Christmas and New Year when you’re in Crimbo-limbo and don’t know what day it is or how many Quality Street you’ve got through), Salon Employers Association (SEA) was leaping into action in line with the new horse year with its campaign to ban Labour MPs from salons, like the hospitality sector ban in pubs that’s been all over the media. You might have seen SEA co-founder Toby Dicker on the news, along with our BHC colleague Colette Osbourn and other SEA members, vocalising their thoughts on how they feel the Government doesn’t have their backs. It was great to see the campaign gather momentum and the message getting across that we are not actually in growth, and salons on the high street really do need some tax breaks. Here’s hoping.
Plan of action
Regardless, we need to focus on just how we can meet these new increases in labour costs and business rates that are imminent. Talking it through with my senior leadership team, we went through the obvious hit list, but it occurred to me that maybe it’s not that obvious to everyone, so I thought I would share what areas we are looking at.
Obviously when margins are squeezed, there are only ever two options: increasing turnover or decreasing costs. Putting prices up to get more money in the till is not viable for most salons who have only just done this to cover the recent increases in NIC’s (Employer’s NI) – increases that don’t benefit anyone (certainly not the employee) except the tax man.
We put our prices up to coincide with those costs going up when they hit and absolutely don’t feel that our price-sensitive clients would stomach another rise so quickly. Of course, it’s not just the budget that’s squeezing the profits – manufacturers and suppliers have put their prices up to cover their increased costs too, sometimes unexpectedly mid-year instead of the usual annual hike.
There are many other routes to consider when it comes to increasing turnover, and I for one will be looking at more and closer collaborations with local businesses to drive new custom – and I’d urge everyone to do the same. But if putting prices up is something you don’t want to consider either, then all we are left with is cutting costs, so here’s my hit list – use it as a tick-box exercise:
Increasing turnover
1. Raising prices – This may not be viable but do think about it after thorough consultation with the team. If you don’t price tier already, really consider it to keep services affordable and allow clients to cherry pick which element of the service they want to splash out on and which they are willing to compromise.
2. Forge local collaborations – Look at joining up with retailers, hotels, clubs, etc., where can you offer incentives that are private, not public, and won’t damage clients who are paying full whack.
3. Gift vouchers – It’s the one thing Amazon can’t sell that you can. Don’t just wait for Black Friday, make sure your clients get a great deal on a package – a course of treatments or service add-ons.
4. Review your service menu – What do people go elsewhere for? Use your social media or in-salon surveys to find out. Is there a service that you can offer instead?
Cutting costs
1. Suppliers and manufacturers – Have you got the best deal? When did you last review it? Is it worth considering a move? Have you asked what financial support is available to you that you might not be aware of (discounts, retrospective payments)? Most of all, do they value you? Do they listen to you? Do they help you educate, develop and upskill your team? Does it feel like a partnership where you are going in the same direction? If not, consider a move.
2. Accountants and payroll – This is a huge expense that I’m currently delving into (begging my sister to update her payroll skills and take it over!) Is there a cheaper way of managing your accounts?
3. Business rates – Worth appealing even if you don’t get a result. Based on your (newly assessed) rateable value which is the bit you can argue.
4. EPOS rates – Always worth re-negotiating. Such an annoying slice of turnover that has no impact on your customer experience. Haggle, haggle, haggle!
5. Utilities – Those of you lucky enough to be able to decide your energy providers (I can’t as I’m in a development governed by my landlord) should shop around.
6. Insurance – As above; deals are always available. But don’t scrimp on cover. We are exploring ways of getting collective buying power for our members, which would offer a way forward for the sector. Supporting each other by getting a large swathe of salon owners to move or change – for instance, utility providers could result in some megadeals. I’ll keep you posted. In the meantime, take some time to tackle the hit list above.
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).