Business

5 Easy Ways to Give Yourself a Raise

May 10th, 2018 by Joelle

Let’s face it, many salon owners aren’t charging as much as they feel they should. Local competition and price-sensitive clients are two strong reasons why. In some cases, grooming rates are already as high as considered possible without losing customers.

In most service-based businesses, payroll is the highest expense. A typical grooming business pays out more than 50% to 60% in payroll, alone. When salons are paying out those percentages, raises are rare.

We’ve talked to lots of groomers. It’s no surprise that one of the main complaints with their jobs is not making enough money. It’s not all about the money but having fair compensation for the work we do is not unreasonable!

When people come to me and ask how they can earn more, I always remind them that time is money – regardless of how you are paid. The faster you can get through a pet safely, the more money you will ultimately make.

5 Easy Ways to Give Yourself a Raise

Use Guard Combs

Guard combs are one of the easiest ways to speed up your grooming. They allow you to set consistent length over the dog quickly. With the variety of lengths, it’s easy to customize the haircut just by switching out the guard comb. When working with guard combs you don’t need the time it takes to get a beautiful scissor finish. This is a much safer option that also minimizes the stress large amounts of hand scissoring can cause.

Invest in Chunkers

This scissor style is taking the industry by storm. Chunkers are oversized thinning shears or blending shears with wider teeth. In some cases, they can be used for the entire groom. Chunkers give a beautiful natural finish in no time.

Some stylists choose to use them in conjunction with scissor or guard comb work. When used in this manner, they dust the top of the coat, removing any imperfections swiftly. There are plenty of styles to choose from with a wide price point based on the quality of the shear. Talk to other pet stylists before you invest in a pair. Find out which chunkers are their favorites and then try them out before you buy them.

Add Accessories

Pet parents are spending more on their dogs. Many clients love a little bling – and it doesn’t always have to be shiny! It’s easy to upsell special accessories:

  • special bows
  • bandannas
  • feather extensions
  • nail wraps
  • temporary color
  • pup tattoos
  • jeweled neckwear
  • bow ties and ties
  • temporary body bling
  • feather eyelashes

There is no limit to the creativity you can have – as long as it is safe for the pet. It’s a fun way to add a little extra revenue and get people talking!

Up-Grade Specialized Shampoos or Services

Every salon has its favorite economical go-to shampoo. But what if your clients had a choice? For some clients, nothing is too good for their pets. Many spa lines of pet shampoo do a fabulous job getting the dog clean and smelling fabulous. There are many specialty shampoos that treat special skin and coat conditions. Most of the time they cost a little bit more than your everyday shampoo. There’s no reason to charge the same. Some specialty shampoos need to sit on the pet a little bit longer to be effective (if it takes extra time it should also add a little more cost). Consider these liquid tool gold mines:

  • blueberry facials
  • anti-itch shampoos
  • odor neutralizing treatments
  • skin and coat remoisturizing treatments
  • deshedding shampoos

Try a paw-i-cure instead of just trimming the nails. This type of service is a package deal. It includes:

  • filing nails with a Dremel to get them smooth and short
  • trimming the coat between the pads
  • sometimes a skin soothing ointment is even included for rough foot pads.

Many of these upsells don’t take any more time to do yet add more income to you or the business.

Stay Focused

Don’t get distracted. Most small to medium-sized basic grooms should take about an hour to do. If someone else is bathing for you, the finish trimming should only take between 20 to 30 minutes for the same sized basic groom.  Minimize the idle chitchat with your coworkers. Put your cell phone on silent and deal with it when YOU have time. Keep your station highly organized. Create a routine for everything you do from start to finish. The more dogs crossing your table translates into more money going into your pocket. Sometimes it’s in the form of a paycheck, sometimes it’s in the form of tips.

It doesn’t matter if you are commission or hourly. The efforts you put out will create faster grooms, higher-quality trims, delighted customers, and repeat business. Applying these five tips can help you groom dogs better in less time while providing great service for your customers – while adding cash to your pocket!

Happy trimming!

Melissa

What are some ways that you’ve tried? What works for you? Go to our Facebook page and chat with your Melissa Verplank family!


Melissa’s Top 10 Ways to Build a Strong Clientele

January 4th, 2018 by Joelle

Anxiety-Disorder-SymptomsAre you thinking of opening a new shop where there isn’t a grooming salon or expanding into a new market area with your mobile unit? You are probably giddy with excitement over the prospect of all those new clients.

Watching that superstore getting ready for its grand opening? You are probably worried that you’ll lose clients.

Are you fretting over how much to raise your prices? You are probably agonizing over how many clients will look for other options to get their dogs groomed.

These are real worries.

Your current and prospective clients have four options.

  1. Use your service
  2. Use a competitors service
  3. Do it themselves
  4. Not do it at all

Sometimes the biggest challenge you have with building a clientele is not your competitors – it’s your prospects.

So how do you win clients over? How do you encourage them to patronize YOUR place of business?  Simple.  Stand out in a positive way!

My Top Ten List ways to start winning clients today.

  1. Build compassion and trust with pets and their owners
  2. Look, speak, and act like a professional
  3. Keep it clean and organized
  4. Always do more for the client than they can do for themselves
  5. Never stop learning and growing
  6. Safety first!
  7. Keep a comprehensive service menu with fair pricing (that does not mean cheap!)
  8. Be consistent
  9. Have a strong web and social media presence
  10. Smile – it’s the best sales tool you have (and it’s even better when you make the client smile!)

1Think about these items. How can you make them unique to YOU? Each one of us is an individual. We all have strengths and weakness. The key to success is to play upon your strengths.

When you are a solo stylist and own your own business, you have to be good at everything. Once you start to grow, that generally means hiring help. When you hire someone, don’t look for a carbon copy of yourself. Instead, look for someone who can complement your personality and work ethic. They will play off your strengths and offset your weakness.

No matter how well you do your job, the client needs to perceive the value of the grooming they receive on their pet.  It does not matter if YOU think you are giving great service – the client has to KNOW that.

They have to value that great service. If they don’t – they will look elsewhere to get their needs met. And many times, that means you are competing with the prospect themselves.

Happy trimming!

Melissa

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What’s YOUR secret to winning clients? Jump on our Facebook page and share with your Melissa Verplank family.


Paying Groomers – What is Fair?

November 16th, 2017 by Joelle

How and what professional groomers get paid is always a hot topic. There are so many variables:

  • Hourly?
  • Commission?
  • Pay rates?

MoneyOver the years I’ve tested just about every possible combination of scenarios to try to determine what was fair, what worked, and what didn’t.

When I started my first business, I groomed in the vans right beside my mobile groomers. My team earned 50% commission of the grooming charges. We also had an extra “house call charge” for the front door service per stop (not per dog).

My mobile fleet grew from one van to six in about five years. Plus, I added a grooming salon to the mix. We were busy all the time. However, every once in a while, cash got tight.

Have you ever been there?

As we grew, the cash flow would have high and low swings. When the swing went up, it was fun, and I could reinvest in the company. I would buy another van and pay for continuing education for both myself and my team. We celebrated when we met sales quotas.

Occasionally, I would struggle to make a payment. If catching up got too deep and available cash got tight, I would grab a credit card. In those moments, I needed to keep the vans on the road and take care of expenses no matter how high the interest rates.

The busier we got, the less I paid attention to the finances. After all, we were all working and bringing in money. It was inconceivable to think we wouldn’t have enough money to pay the bills or commission.

Quote In A CircleBut then it happened.

A payroll check bounced. The lights got turned off. The phone service got shut off.

Each of these stressful, embarrassing, and terrifying moments are the hard lessons many business owners face.

Early in my career, I didn’t pay attention to the financial health of my business. It was a painful lesson I needed to learn the hard way. I was losing sleep over it and after more than one negative incident, I vowed never to let it happen again.

Detailed bookkeeping wasn’t my forte – I would rather have been grooming. However, I bit the bullet and invested in a bookkeeper. She was much wiser than I when it came to money matters. She made sense of the income and the expenses and I started paying attention to my cash flow.

We worked closely together and each month she would create a profit and loss statement for me. It would contain all the standard categories along with monthly and year-to-date figures. Plus, she added a column that tracked the percentage of expenses to sales.

The percentages were critical. No matter how rapidly we grew, I started to see trends in the percentages. It allowed me to easily track the fiscal health of my companies at a glance.

Early in my first mobile business, the only thing really saving the company was the house call charge on top of the grooming fee. Little did I realize how detrimental a 50% commission rate was to the health of a business. It’s very hard to run a profitable company when you pay out almost half of your grooming revenue.

It’s even more challenging if you had W-2 employees vs. independent contractors (but that’s a whole ‘nother blog!). In the state of Michigan, an estimated 13% was paid in payroll tax obligations for my staff based on their wages.

Look at the chart below. If you are a commissioned groomer/stylist, find your rate. Next, find your average price per dog. For example, if you earn a 50% commission rate and the average ticket price of the dog is $50, you would be earning $25 per dog.

CHART_1

Did you find your place on the chart?

Notice what happens to the earning potential when pets are priced higher, yet the commission rate is lower?

Where would you rather work – at a salon with lower-priced dogs but at the 50% rate or at a higher priced salon with a lower commission?

The commission rate isn’t the true barometer of your earning potential. The price per dog combined with the commission rate is what you need to look at. Even if a commission rate is 38% but the average ticket price is $70, you would be earning $1.60 MORE than the 50% commission rate at $50 average grooming price.

Don’t get hung up on the commission rate. Pay attention to the average price per pet COMBINED with a commission rate. Then, do the math. It might surprise you!

In the next set of charts, I want to demonstrate what happens to a business paying out a 50% commission rate to employees. In these examples, I have simplified salon expenses. Most salons will have a longer list of expenses. The examples show how the numbers would play out over the course of a year. As you look through the amounts, notice what happens.

A

I have used a 50% commission rate for salon generating $150,000 per year.

 

B

The salon is generating $210,000 annually while paying out a commission of 50% to the groomers.

 

C

The salon is still generating $150,000 per year but now the commission rate has fallen to 44%.

 

D

The grooming commission rate is 44% but the average ticket price increased per dog, earning the salon $210,000 annually.

 

In example A, the salon is clearing $5,910 for the entire year or less than $500 each month.

If you are a salon owner, I’m guessing you did not get into business to run a nonprofit company. In this scenario, that’s pretty much what’s happening.  Remember, I simplified the outgoing costs of the businesses. Most salons will have more bills to pay than reflected in this example.

If you are an employee working at a salon paying 50%, you feel it every day. The lack of cash flow filters through. Chances are, the salon struggles to make ends meet. It has to cut corners. One financial hiccup can send it into a downward spiral.

The only way a 50% commission-based salon can truly make ends meet is if the salon owner is also one of the groomers. Another option is to have other streams of income other than just grooming.

Raising prices and dropping the commission rates is in the best interest of a business. It creates a cash flow buffer which takes the pressure off everything and everyone. It allows the business to thrive instead of struggle. It allows for higher-quality products, equipment, and education. These items make the workspace more enjoyable while minimizing burnout and maximizing quality.

Most salon owners and their employees are among the most passionate people I know. We’re hard workers and love pets. Owners and staff need to work together as a team. Everyone needs to understand what the numbers look like in order to have an enjoyable work environment.

My professional grooming department at Whiskers Resort & Pet Spa currently runs with a team of seven stylists and three grooming assistants. The team has both full- and part-time employees. The sliding-scale commission rates range from 38% – 44% for full grooms based on client satisfaction, rebooking, and financial quotas. Stylists earn lower commissions on simple bath and brush pets requiring less time. Stylists can bounce up and down the tier system based on the previous quarter’s performance. Grooming assistants are paid hourly based on experience and performance. On average, the grooming department’s commission payroll runs between 36% and 43% of gross sales. With lower commission rates, we can afford to pay the assistants and a portion of the customer service team who books all the grooming appointments.

Even with lower commissions, the average ticket price runs between $65 and $70 per dog. Based on personal motivation and experience, stylists groom an average six to 12 dogs a day. As a bonus, on a typical day, a stylist can also earn anywhere from $30 – $80 in tips on top of their commission rates. This department is flourishing, and the turnover is extremely low.

Salon owners, if you don’t have a firm handle on how the dollars stack up, I encourage you to track them and pay attention. If you don’t want to deal with it yourself (like me!), hire a bookkeeper. Then work closely with them and learn. They love to tinker with numbers the same way we like to tinker with dogs!

I encourage you to compare the charts. Check out the numbers. Think about how you fit within these examples. Then run your OWN numbers and see how you stack up. It does not matter whether you are the salon owner or a commissioned stylist. The numbers don’t lie and are the key to EVERYONE’S financial health and success.

Happy trimming!

Melissa

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What system do you use in YOUR business? Jump on our Facebook page and share what works best for you with your Melissa Verplank family.


Are You Taking Care of Your Best Customers?

November 2nd, 2017 by Joelle

CSRIt’s hard to believe, but the major holidays are just around the corner. What does your appointment book look like? Are you booked out until after the holidays?

If you are, CONGRATULATIONS!  Give yourself a huge pat on the back. Being proactive with your schedule feels great, doesn’t it?

If you’re still trying to fill holes in your schedule, there’s a question I’d like to ask.

Do you know who your most valuable clients are? Whether you are a solo flyer or work with a team, you can benefit from knowing what type of client brings in the most revenue.

When it comes to the busy holiday season, knowing how to prioritize appointments can be very helpful. As much as we would like to get to every client, there are only so many hours in a day. It can be hard to decide who gets appointments and who gets turned away.

This chart might help you determine who your most valuable clients are. Typically, it’s not the client paying the most money per groom.

tableLook at the revenue generation on the one, two, and three-week clients. Even with heavily reduced grooming fees, it’s amazing how $20 can add up week after week!

I’m not saying this is what you should be charging for your dogs. I’m just giving you an example. You can see how the numbers works out. Test the numbers using your own pricing averages.

Quote In A CircleOne of my companies automatically gives a five-dollar discount for clients that book every 4 to 6 weeks. Once they get under three weeks, the discount is even bigger. This is great for keeping the books full – and the dogs stay in good condition all year long.

It’s pretty amazing once you see the math, right? Hopefully, it gives you clarity on who should get those premier appointments spots.

Let me ask you this: is it fair to either the client – or to you – to take an eight-week client over someone you see every four weeks? What about a four-week client over a weekly client? Ultimately, the choice is yours, but I know who I’d pick!

When booking appointments, start with the clients you see most often. Reward their loyalty with the best appointment slots.

Take care of your weekly and biweekly clients first. Then move into your three-week clients. If they don’t have appointments, reach out to them in whatever method works best for your business – call, text, or email. With any luck, the last two appointment days before the major holiday(s) will filled with your regulars. Those days will be a breeze for you.

Once those clients are taken care of, start booking your four-week clients and continue down the line. By the time you’re done, you’ll know you’ve taken care of your most valuable clients in a way that is both systematic and fair. If you still have slots available, go ahead and fill them in as the phone rings.

If you are using this system to book six month to a year out, make sure you communicate with your clients. They should know when you’re unavailable due to vacations, family obligations, educational events, or peak grooming times. Helpfully offer them alternatives so their pets stay in excellent condition. You may need to be more flexible on times or even offer to have a substitute stylist when you are not available.

The holidays are always a blur! If you’re overworked, underappreciated, and totally worn out for your close friends and family you won’t enjoy the holidays. You need to make the time for yourself and those you love. I can still hear the disappointment in my mother’s voice when I was so exhausted from grooming, I could not make it to our traditional Christmas Eve family gathering.

This prioritizing system helped immensely. Being a little more organized and proactive meant I could take care of my best clients and still have the energy to enjoy the holidays with my family.

Don’t limit yourself – you can use the system to fill your books all year round. Ultimately, it depends on how in demand you are and how busy your schedule is.

Whatever way you implement the system, it’s a great way to take care of your best customers. Take care of them and they’ll take care of you. Most importantly, you’ll both be taking the best care of the pets you love.

Happy trimming!

Melissa

MVpaw_no_Inner_white

Who gets YOUR premier time slots when your availability is limited? Jump on the Learn2GroomDogs.com Facebook page and tell us.

 


The Importance of Rebooking Appointments

October 19th, 2017 by Joelle

Rebooking clients is one of the easiest ways for groomers and pet stylists to boost their income. Encouraging clients to rebook on the day of their service will help keep a steady stream of pets coming into your salon.

cozy petClients that rebook before they leave return on a much more frequent basis than those who do not. Let’s face it – life gets busy. Personally, if I did not rebook my own hair appointment before I left the beauty salon, I’d be there a lot less frequently than every five or six weeks! Our pet owning clients are no different.

Many groomers don’t encourage their customers to rebook their pet’s next grooming. They think the client will come back when they are ready. While that may be true, it’s more likely the client will not return as often as they should.

As a professional, it is up to us to educate our clients how often they should return based on:

  • hygienic needs of the pet
  • coat condition
  • trim style
  • activity level
  • level of home maintenance between appointments

Most pets that are considered a part of the family require regular grooming. These owners share their lives, their homes, and sometimes even their beds with their four-legged family member. These pets benefit from weekly or bi-weekly bathing. Ideally, pets that require haircuts should be trimmed every 4 to 6 weeks. How often you handle hand stripped pets will vary based on the coat type and the technique used to strip out the dead coat. These dogs will need to be groomed weekly to a couple of times a year.

Pet professionals who understand the impact of rebooking realize that is not just a courtesy, it’s an important business building strategy. Educate your clients about the rebooking process. Encourage them to set aside time to keep their pet’s coat in peak condition.

Circle Steps

Here are 4 Tips to Ensure Your Clients are Rebooking with Every Visit

  1. Stress Maintaining a Schedule – As a professional pet stylist, it’s your job to educate your client. You know what it takes to keep their pet’s coat in peak condition. Find out how the client would ideally like their dog to look and learn their budget. Talk to them about how much at-home care they are willing to do between grooming appointments. Discuss the lifestyle of the pet. Once you know the answers to those questions, you can suggest the ideal number of weeks the pet should go between professional grooming appointments.
  2. Suggest Dates – Don’t just ask the client if they would like to rebook their next appointment. Suggest an ideal appointment date when you should see them again and have your calendar ready to set that appointment. If the client is hesitant, politely informing him that the best spots are already being filled can often help him make the decision to arrange for the appointment before he loses out to someone else.
  3. Offer an Incentive to Rebook – Small incentives can be a great way to keep clients coming back. Offer a small discount if they book their next visit within six weeks or less. Or offer them a free service with their pre-booked appointment. If they rebook weekly, bi-weekly, or every third week – offer them a special discounted rate to maintain the frequency of their visits. Do the math – you’ll probably be shocked at how steeply you can discount a weekly or bi-weekly client on their regular grooming price and still make more money on an annual basis.
  4. Train Your Staff – Rebooking is a courtesy to the client – and a benefit to you. Make sure your entire team understands the importance. The key to success is to ask EVERY client to rebook their next appointment before they leave.

Having an appointment book that is 50% to 70% pre-booked is like money in the bank. It’s a security system that allows you to breathe easily. It ensures you will not lose clients or revenue from light client bookings. It is one of the easiest ways to guarantee your income and keep your pet clients looking and feeling their best.

Happy trimming!

Melissa

MVpaw_no_Inner_whiteDo you agree with this post? How do you encourage your clients to stay on a regular schedule? Jump on the Learn2GroomDogs.com Facebook page and tell us why or why not.

 


 
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