065 20% Retail and 20% Profit, How Do You Measure Up?

Often I feature world-renowned hairdressers on the podcast, and at other times, I like to feature lesser-known people from the industry that have great success stories that are not only relatable but every bit as inspiring.   Some guests on the podcast have lavish salons and high-profile clients in high-profile locations that charge big money for their services. But the problem is that often I find that that actually isolates some listeners, and they say or think to themselves, "I can't do that in my small town - that's just not possible!"    Or they will have all sorts of excuses to justify their shortcoming ranging from 'Amazon has destroyed retail for salons' to blaming the current 'economic situation' that the world is in. And while I am not discounting any of that, I also meet salons that, despite everything, are doing well!   And so as part of the 'comeback series' of podcasts, my guests today's are Sonya Gettinger and Ally Deering, who are two of the partners in 'Hollywood Hair' which is a group of 3 salons based in Centralia which is a town of 12,000 people in Illinois, and in two of the salons they are each producing well over a million dollars year …and close to 20% of that is in retail sales.    And when it comes to profit, they aim for a 20% profit margin, and that's after the owners have been paid!    So, in other words, they have a very successful business, even though their main salon is in a town of 12,000.     In today's podcast, we will discuss: The impact that COVID has had on them The upside and downside with social media The key to a successful expansion  Building team culture…    And lots more! In This Episode: [02:24] Welcome to the show, Sonya and Ally! [02:52] Sonya and Ally speak about their salon Hollywood Hair and where they see it going in the future. [05:55] Listen as they discuss their concierge service and the benefits it has afforded them on the retail side. [08:55] Did you lose any staff during the lockdown? [10:44] They share how they are marketing the safety precautions. [12:47] Ally discusses the impact that social media has had on their business. [15:00] Retail has remained steady at 20% during the pandemic, even with the shutdown. [17:48] Antony speaks about customer service's need to keep the clients buying products from your salon. [19:24] How do you manage and set guidelines around social media? [21:32] Sonya shares the ups and downs of using social media. [23:40] Sonya speaks about putting her team on lockdown with social media because of two stylists bashing the salon. [26:02] Sonya discusses working behind the chair, even though they now have three salons.  [28:42] Listen as Sonya shares learning to manage the staff and how to protect the salons. [31:10] At what point do you know it's time to open another salon? [32:26] Ally shares what they wish they had known before they opened the second salon. [35:47] Sonya discusses opening other salons with current staff and deciding which employees they want to make leaders in the new salons. [37:40] Do you finance them into the salons, or do you require them to get the loans? [38:45] Ally shares the three things she believes you need to create a team culture. [40:32] Sonya speaks about the difference between young hairdressers now and how she has had to change their procedures to meet them. [44:35] What percentage do you aim for after the owners have been paid? [47:44] Ally discusses apps they use at the salon. [48:47] Sonya shares her insights on the best way to expand. [50:43] What total sales do you expect your stylists to do each week? [53:27] Thank you so much for being an open book about your business. [54:25] Sonya shares some final thoughts for the listeners. [55:38] Thank you, Ally and Sonya, for being on the show! Links and Resources Grow My Salon Business    Grow My Salon Business Episode 18 with Alicia Soulier Find Ally and Sonya Hollywood Hair Salon & Spa @hollywoodhair Facebook  @hollywoodhair&spa Facebook | LinkedIn