Learn how to turn gift cards into a profit machine for your salon! đź’ł From avoiding revenue pitfalls to crafting promotions that drive NEW clients to your business, we cover it all in this episode. Learn More About Our Sponsors: Phorest: https://www.phorest.com/us/ L'ANZA: https://www.lanza.com/ Collins: https://collins.co/ MYA: https://joinmya.com/ (Use promo code HPSA for your first 2 months FREE)
Gift Cards as a Tool for Growth: Gift cards can be highly profitable when used to attract new guests and grow revenue during holidays.
Biggest Mistake #1 - Discounting: Avoid offering discounts on gift cards, as this can hurt your profit margins and set unrealistic pricing expectations.
Biggest Mistake #2 - No Boundaries: Clearly define gift card usage rules to prevent misuse, like limiting their use to specific services or retail products.
Biggest Mistake #3 - Fluffing December Sales: High gift card sales in December can artificially inflate revenue, leaving other months weaker.
Biggest Mistake #4 - Spending December’s Cash: Treat gift card revenue as deferred income and avoid spending it immediately.
Biggest Mistake #5 - Misclassifying on P&L: Log gift card sales properly as liabilities until redeemed, to avoid tax and accounting issues.
Biggest Mistake #6 - Selling to Existing Clients: Focus on gift cards as a tool to bring in new customers rather than discounting services for loyal clients.
Theft Risks: Implement systems to track and catalog gift cards, as they can be a target for employee theft.
Timing and Marketing Strategies: Peak sales often happen close to Christmas, but promotions should encourage early-year bookings to maintain revenue consistency.
Creative Packages: Bundle gift cards with services or retail items to add value, attract new guests, and provide thoughtful gifting options for businesses or groups.