If you’ve kept up on the news, it’s likely you’ve heard of some economic turbulence. Given a turbulent stock market and rising inflation, experts predict a recession will happen in 2022. But it’s not all doom and gloom for your salon. Consumers are still spending despite booming inflation.

That means haircuts, eyebrow waxing, and lashes are still on the table! No matter what happens in the economy, people will head to the salon to maintain their look.

Of course, threats of a recession are still worrying for any salon. First things first? Take a big deep breath. As a business owner, your salon staff is looking at you for guidance. As long as you keep a level head and come up with a plan, you’ll weather the storm. Follow these tips to keep your salon up and running despite an economic downturn.

1. Create A Recession Plan

You know the phrase, plan for the worst but expect the best? That’s exactly how you should start planning for a potential recession. If you owned your business at the beginning of the COVID-19 pandemic, you already know that an emergency plan is crucial!

You should know a few essentials about your business. Work with an accountant to see how much your operating costs are if you’re not sure. Think about your services, customer base, and inventory. What would you do if a portion of these essential components decreased or vanished in the event of a recession?

Brainstorm ways to make up revenue in case you see these numbers fluctuate. You may want to tap into a new customer base with local ads if you anticipate you’ll lose some regulars.

2. Tidy Up Your Budget

In the same way you’d cut expenses in your personal life, you’ll want to do the same with your salon’s budget. First, look at your fixed expenses like rent, insurance, and utilities. These are harder to change, but it’s good to keep these in mind. If some costs are exuberantly high, think of creative ways to lower them. Shop around for new insurance rates and see if you can score a better deal now rather than later.

Now consider your variable expenses. You may have more wiggle room with these expenses to trim your budget. Maybe you try to do fun stuff with your staff like travel and have team lunches. You can curtail this spending to once a month instead of biweekly. Or get creative with your team. Swap your pricy brunch for a team potluck instead!

3. Don’t Cut Marketing and Advertising

When the economy takes a turn, it might be your instinct to cease all marketing and advertising you have in place. When you’re balancing the numbers, cutting advertising is tempting. But this is ultimately a bad idea in the long run. You want to increase visibility and sales now more than ever. If you remove all your digital marketing or advertising efforts, current or prospective customers may struggle to find your business.

Adjustments are still a good idea though. If marketing isn’t your thing, work with a freelancer to do a deep dive into your analytics. A digital marketing professional will be able to tell you where to allocate your advertising dollars to get a better bang for your buck if times get tough. Switching up your marketing strategy can also help you tap into a new customer base in case you lose some customers in a potential recession.

4. Be Deliberate with Customer Service

Now more than ever, your customer service matters. Your guests are feeling the weight of inflation too. So if they’re going to treat themselves, they want their salon experience to ease their worries for a while. Not create more of them!

Ensure that your entire team knows the customer service protocol for your salon. Hold a training session to remind employees of how to treat customers effectively. Regular customers should be treated with kindness and excellent service. They also may be a great resource for referrals from family and friends.

You also may want to reach out to clients your salon only saw one or two times. Give them an email or text reminder with a coupon if they return. Prioritize these relationships, as they can be easier to get back in the door.

5. Prioritize Feedback

You’ve rehearsed with your employees to ensure they provide the best customer service. If your customers are happy, it’s an excellent time to ask for reviews! Make it easier for them by creating or updating a Google Business Profile for your salon. Pleased customers can create highly visible 5-star reviews, making it so prospective customers see them right away.

Give subtle reminders too. Create stickers for salon mirrors to let customers know where they can leave a positive review. Show them where to leave reviews on the back of your business cards and the end of your promotional emails as well. Of course, you should always respond to reviews as they come in. This way, you ensure your salon remains communicative and transparent online.

6. Diversify Your Services

Depending on your salon, you may have offered the same services for years. Now may be the time to try something cost-effective and new. Your pricier services like eyebrow tinting or highlighting may not be as popular now. Survey customers to see what services they’d like to see in your salon. It might surprise you! Your customers could hold the idea to your most profitable service.

Maybe you’ve always done brows. But so many clients come in for special occasion waxing, they’d like to get their makeup done as well. If you are going to try a new service, be sure you have the capacity to train your employees on how to perform it. Once your new service is up and running, you’ve also created an awesome new marketing opportunity to attract new clients!

7. Downsize Strategically

If times do get rough, you may have to downsize. The word gets a nasty reputation, as no one wants to be laid off. So, downsize like a team player as much as possible. Try to avoid cutting staff as much as your budget allows it. If needed, review your hours to see when you’re least busy. Trim your operating hours temporarily to save on payroll.

If it’s necessary, you may have to take a pay cut for a while too. Your team won’t be super motivated if they see layoffs happening and you haven’t tried every option. Remember that your salon is only as strong as your team. If you work to uplift your employees during rough moments, they’ll remember your graceful efforts when the economy improves.

8. Prioritize Products

If you haven’t tried selling products in your salon, it’s time to start. Products are incredible ways to increase your salon’s profits for an extra boost. Work with your employees to incorporate products into their service. Have them tell clients about the lash serum or brow gel they’re using during the service.

Get your employees motivated and involved with the products they’re selling. A great way to do this is to start a commission program to inspire them to sell. As they make a sale, they can anticipate a small percentage of the sale as profit. As a recession looms, they’ll appreciate the extra commission as much as you do.

Ready to get started selling products in your salon? Contact us to get started with your salon’s very own private label products.