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We love ya, Baby!
I started with cutting expenses. cut insurance by 35% while increasing coverage. I did this by shopping other companies, then giving our existing company a chance to keep us — and they did! Next I did same with our credit card merchant service and cut our fees almost 50%. this was huge and soo exciting and encourage me to revisit our build out loan with our current bank and 2 others. Soo fun we are still getting competitive offers and have not made the final choice.
We also renegotiated our lease which we were unable to lower our square footage but did get a free storage area. Our salon is in Pittsburgh and we still are in commission
compensation. 4 0f our 12 techs and stylist get 55% – ugh!!!
Chris you show us how doing this makes it impossible to make any profit or even break even. We were too afraid to cut their commission so we took your advice and stated a new deal. we advertised and hire 1 stylist and 1 skin therapist for $8.00 an hour salary or 30% commission which ever was greater. 1 of these girls is not doing well, I feel it’s a combination of us not have good training systems in place and this person misses more days than she comes . good news she is on 90 day probation and we are telling her tomorrow (if she shows up) it over.
We have just today got the final agreement from 2 new stylists with big books who love our salon and reputation and our leaving a well know upscale salon in our area.
I would have offered them 50% just to get them but because of your voice in my head I offered them 45% with $5.00 service charge on chemicals –THEY TOOK IT AND WERE HAPPY!!
Chris I don not know how to thank you for scaring the hell out of me. I knew you were right and we needed to make the changes to survive. We have a lot more to implement but I now feel excited not exhausted and will hopefully be able to spend more time with you and glean more of your wisdom.
Thank you, thank you, thank you!
Marilyn Jorgensen, Tu sei Bella Salon and Spa pittsburgh, pa.
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