The 80/20 rule every salon owner should follow
We love an 80/20 rule: eat healthily 80% of the time - indulge 20%, exercise 8 days - rest 2 (we’re working on that one). Simply put the 80/20 rule means we get 80% of our results and success from 20% of our work or focussed efforts.
When it comes to salon life the 80/20 rule applies to our clients, team, pricing and the colour bar. Did you know:
20% of your team will likely produce 80% of your top results
20% of clients likely create 80% of salon revenue
When calculating the cost/value of any salon decision it pays to think in the 80/20 rule. For example, wondering whether you can afford a price increase? You may lose 20% of your clients by raising your prices however, the extra revenue gained by the remaining 80% makes up for the 20% lost - plus it creates the space and drive to bring in new and higher-paying clients.
Factoring in the 80/20 rule in your colour bar
Consider this:
Stylists commonly only use 20% of all the colours offered in a range
Most salons only use 20 - 40% of the colour that’s sitting on their shelves
This means a lot of inventory is going unused and money on your shelf could be money in your back pocket.
We get it, there’s pressure to have a fully stocked colour shelf - the odd occasion where someone needs 1.11 and it’s nearly empty, or managing the stylist who “feels” like there is never enough 5.3. Add to this trying to do a stock take amongst a fully booked column; how often have you found yourself eyeing one tube of colour on the shelf and making the snap decision to top it up with a couple more?
Knowledge is power
Look at the frequency of colours used to determine your 80/20 rule. Adjust your colour inventory levels to ensure you have plenty of your most popular colours (20%) and a bare minimum of those that aren’t used as frequently (80% of the range). Not only will you save money but you’ll ensure you don’t run out of the products your team truly need.
Let color bar manager calculate your 20%
With our popularity report your top 20 highly used colours. Plus you can see at a glance just how much of each colour you are using over 3 months. No more “feelings” it’s a fact!
