Do you own a salon or spa and want to increase sales and ticket size by 85%? Would you like to have more customers that come back again and again? Offering salon customer financing might be the trick. Allowing your clientele to pay in installments has many benefits which we will cover.
What is Salon Customer Financing
The salon industry is a $33 Billion a year powerhouse, with over a million salons in the U.S. It’s a competitive industry, with salons implementing unique products and services to get one up on the competition. Allowing financing for your customers can open up new doors to your salon or spa and dramatically increase your bottom line.
In a previous article, same day salon merchant advance, I talked about the benefits of quick capital for expanding your salon business. In this article, I will discuss how you can dramatically increase your profitability with customer financing. Both topics are crucial for the success of your salon.
Offering Financing to Your Salon Customers
Many customers will walk away or abandon their shopping cart if they see a price they cannot afford. One of the easiest and fastest ways to fix this problem is to offer financing for purchases of $300 or more. They will be more prone to not only buy the higher priced items or services, but they will feel confident shopping with you again because of this option.
The average annual profit of a salon is $19k, with a profit margin range of 2% to 17% depending on the efficiency of the salon. Offering salon customer financing can boost that margin by almost double. Research shows that adding customer financing increases the average order by 85%. That’s nearly double what non-financing salons are doing. It’s worth doing it!
How Salon Customer Financing Works
You will be able to offer your customer financing options from a variety of lenders all under one platform, which increases their chance of getting a loan. Even if your customer has bad credit, there is an option for them to buy your higher ticket services and products.
From the ease of their phone, a customer can instantly look at a range of loans offered for your salon after filling out a quick questionnaire. After the customer chooses a loan, you, as the business owner, receive the full amount for the customer’s purchase, and the customer and lender then enter a payment arrangement. There is absolutely no recourse if the customer defaults on the loan. That is between the lender and the customer.
Why Apply with Us for Salon Customer Financing
We can get you customer financing in as little as 48 hours. Wouldn’t it feel good if you knew you could dramatically increase your profitability in as little as two days?
Not only will your customers have more confidence in buying the larger services, they will also feel confident in adding more products to their cart. As soon as the customer is ready to leave, creating upsells and add-ons for them with your display of hair products near the door would become seamless.
We are committed to the survival of every small business that was impacted by the pandemic because we are business owners ourselves. Do yourself a favor and get the financing your customers need and watch your business grow. Simply click the apply link below and fill out the questionnaire.
We want to know a few things about your business and we work with not only salons and spas, but hundreds of other types of businesses to get the customer financing they need, or quick same day capital. Thanks for reading and God bless you.
Erik C. Johnson