Is "Discount" a Dirty Word?

Ten reasons why discounting new clients could be bad for your salon business.

Discounting new clients is a divisive subject. Is offering a discount really a smart move, or could it be harming your salon business more than you realise?

Let's cover some of the objections.

Reduced Sales: Offering discounts means immediate revenue per client dips. It sounds risky, especially when you're starting out. But what if the staff offering these deals are not fully booked and have time available? Could smartly placed incentives with certain team members actually be an opportunity rather than a loss? In other words, would it be better for them to win the confidence of a new client, generate some revenue and start to build clients? Or better to build more slowly but with full paying clients?

Reputational Damage: It’s not unusual to worry that discounts might signal lower quality. Potential clients may think that because you’re offering discounts you may not be good enough. However, if these offers are framed correctly – say, as an expansion effort or to build a clientele for newly qualified team members – would your salon's reputation remain intact?

Another factor to consider here is would having more clients in your salon strengthen or weaken your reputation to passers by and potential new clients?

Dependence on Discounts: A concern is clients might only visit because of discounts and you could attract clients who would not typically pay full price. But what if you made it clear this is a one-off welcome offer only offered to new clients, you're simply giving them a taste of what's to come at full price.

Reduced Profit Margin: Yes, discounts bite into profit margins. Yet, consider the lifetime value of a client who, enticed by an initial offer, becomes a regular, trying various services and products. This cost of acquisition can be well worth it.

Unrealistic Expectations: The key is clear communication. Ensure clients understand the exceptional value of their initial offer and your regular pricing structure to prevent any shocks down the line.

Overwhelming Demand: An influx of clients from a promotion might seem daunting, but honestly, it's an unlikely "problem". A simple "limited spaces available" notice can help manage bookings and expectations. When you have reached your quota schedule any requests at a future date when your availability needs a boost.

Resource Diversion: Focusing on new clients shouldn't mean neglecting the loyal ones. By mapping out the client journey from their very first appointment, you ensure every client feels valued and looked after.

Mismatched Clientele: The concern that discounts will attract the "wrong" clients doesn't hold much water. People tend to gravitate towards businesses they resonate with. And on the off chance there's a mismatch, your team is still gaining experience and the salon stays lively.

Staff Discontent: If your team views catering to new clients as a chore, then yes, discontent can arise. Flip the script: make it an earned privilege to welcome new guests into your business. This attitude adjustment can transform perceptions and outcomes.

Short-term Focus: Seeing discounts as merely a quick sales tactic misses the bigger picture. Emphasise to your team that they're key players in the salon's growth, establishing long-term relationships from the start.

So, is "discount" really a dirty word? Not if used wisely. It's all about strategic planning, clear communication, and a bit of creativity. Let's turn those one-time offers into lifelong client relationships!

The Salon App is booking, management and marketing software. We specialise in working with salon businesses only, ensuring that we help our clients to attract, retain and win back clients while removing the guesswork from day to day management and marketing. To find out more book a demo here

Wishing you every success