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142. The Profit Trilogy - Part 3 - The REAL cost of discounts

Maximise salon earnings with Phil Jackson's insights on smart pricing and growth strategies.

Lessons from this episode:

  1. Discounting salon services can significantly reduce profit margins, and even a small 10% discount on services can halve profits on a £100,000 turnover.
  2. Understanding the true cost of discounting is crucial; it's essential to assess how much harder you need to work to compensate for the discounts given.
  3. Using discounts strategically can be beneficial, such as incentivising customer behaviour or introducing new services, but should be done with a clear understanding of the financial implications.
  4. A practical approach, using tools like the provided cheat sheet, can help salon owners analyse the actual impact of discounts on their business's financial health.
  5. Continuous financial education and discussions about pricing strategies are vital for the growth and sustainability of a salon business.

Categories: : Goal-setting, Marketing