My wife owns a beauty salon...and she is a genius! She taught me a secret the other day that really improved the revenues for her business. I think it can help golf coaches to do the same...
We were chatting the other day over dinner and as usual, the discussion turned to her business and some of the strategies that she is using to help her business grow.
(bear with me here...we will get to the golf coaching bit I promise!)
The salon was doing really well but she knew that they needed to get organised and manage the clients better. She knew that they were missing opportunities and she knew without a more organised approach they would continue to leave money on the table.
One of the biggest problems that she was facing was the number of cancelled appointments that they were getting. The salon had a cancellation policy which meant that a percentage of the cost of the treatment was payable if the client cancelled too close to the appointment time so in theory, cancellations shouldn't be a problem as they recoup some of the lost income...
But they never enforced it!
This was partly because they not want to annoy the customer and risk losing them to another salon. But the main reason was that they just didn't like to have that difficult conversation. It was just awkward and uncomfortable and it was easier to let it slide and take the financial hit than asking the person to pay for an appointment they didn't attend. Especially when they had a good reason (which they always did!).
So we started doing some maths and we worked out that cancellations were costing the salon an average of £200 per week in lost revenue. £10,000 per year! That would pay for the bubblegum pink Range Rover that she has always wanted!
So what did she do about it?
She invested in some super smart salon management software which really helped to manage the client bookings. It would confirm appointments and could send text reminders before the appointment so any forgetful clients were reminded about their appointment.
This helped a little but it didn't really solve the problem. They were still getting too many cancellations and this was costing them money.
She realised that although they had the software and they were reminding clients...there was nothing really stopping the clients from cancelling. They were still too squeamish to implement the cancellation policy and have that difficult conversation.
The big thing that solved the problem was implementing a prepayment option. They got their clients to pre-pay online using their online booking system and offered them incentives for doing so.
For some of their repeat offenders they almost 'insisted' that they prepay!
This was really effective because...
- Most clients were more inclined to turn up for the appointment because they had already paid - this reduced cancellation rates significantly almost overnight.
- If the client didn't turn up then it didn't matter because the salon already had the money in the bank and if they could fill the appointment with someone else then they basically doubled their revenue for that appointment.
- The biggest benefit was never having to have an awkward conversation with a client ever again. If a client ever asked for the money then they could point to the cancellation policy and then make a call as to whether they would offer the appointment again minus the cancellation fee or not.
The pink Range Rover isn't sitting on the driveway just yet (thank god!) but the Salon is definitely doing a whole lot better!
So how does this help a golf coach? I hear you ask.
Well fortunately for you, the discerning reader of this blog, GLF. Locker has a prepayment feature built into the online booking engine which means that you can offer this to your clients and massively reduce your cancellation rates, increase your revenues and never have to have an awkward conversation with a no show coaching customer again.
Prepayment comes as a standard feature with a GLF. Locker subscription.
That is the very definition of a no brainer!
You might be able to get a pink Range Rover of your own!
To your continued success in golf....
The GLF Team