Boosting Profits in Beauty and Aesthetics: 6 Smart Strategies for Rising Costs

Welcome to Fillers, Facelifts and Fabulous Teams: The Business Success Formula

If you're a beauty or aesthetics business owner facing challenges like hiring and retaining great team members, keeping up with competitors, or balancing growth with your personal life—you’re in the right place!

In this monthly newsletter, I’ll share strategies to help you:

• Boost profitability by increasing sales and cutting unnecessary costs.
• Stay ahead of industry challenges, like rising employer costs and evolving client expectations.
• Build a high-performing team that drives success and aligns with your vision.
• Streamline your operations to save time and focus on growing your business.
• Adopt innovative trends and practical tools to stay competitive without overstretching.

Each issue is packed with actionable tips to help you navigate the complexities of running a beauty or aesthetics business. From improving team performance to increasing customer retention, I’ll help you build a thriving, self-sufficient business that reduces stress and creates sustainable success.

Ready to take your clinic to the next level? Stay tuned!

My Week's Reflection: Hidden Treasure

This week, I had a conversation with a clinic owner that left us both laughing—and learning. She called me in a panic, exclaiming, “I’ve just found out we’re spending more on coffee pods than on marketing!” While we chuckled over the irony, it highlighted a critical issue: hidden costs can silently chip away at your profits.

We reviewed her expenses and found several surprises. Aside from the caffeine habit, she was overpaying on her energy contract by hundreds of pounds a month and hadn’t renegotiated her supplier deals in years. By the end of the session, she’d saved enough to cover a staff training day—and maybe even invest in better coffee.

The lesson? Sometimes, profitability isn’t about major overhauls. It’s about regularly questioning the little things we take for granted. Whether it’s checking if your Wi-Fi contract is competitive or monitoring how many freebies your team is handing out, small changes can add up fast.

Take a moment this week to audit your own business. You might just find some hidden treasure lurking in the spreadsheets.

How to Stay Profitable as a Salon or Clinic Owner Amid Rising Costs

As salon and clinic owners, the recent Autumn Budget announcements around increased employer costs—including higher National Insurance and National Minimum Wages—mean keeping a close eye on profitability has never been more critical. Rising costs can quickly erode margins, but the good news is that there are proactive steps you can take to maintain and even grow your profits.

There are only two ways to increase profitability: increase sales and reduce costs. Here, we’ll explore three actionable strategies for each to help you thrive despite these economic pressures.

3 Ways to Increase Sales

1. Constantly Analyse Client Behaviour

One of my clients recently discovered that her once-best-selling facial treatment was no longer performing as well as it used to. After conducting a simple client survey, she realized that her customers were looking for more advanced anti-aging options. By introducing a new technology-driven treatment in response to this feedback, she saw a 25% increase in bookings within two months. This story illustrates how valuable it is to align your services with what clients truly want. You might think you know what your best-selling service is or why clients stop returning, but assumptions don’t equal insights. Customer spending habits are always evolving. Conduct an in-salon survey to find out what clients truly want. Ask:

• What services are they seeking elsewhere that you could offer?
• Which new treatments or brands would they pay for if you introduced them?

Direct feedback is invaluable for fine-tuning your service menu and ensuring you’re meeting their expectations.

2. Learn How to Upsell

A salon owner I work with had a team hesitant to upsell, fearing they’d come across as pushy. After a training session where they practiced personalized consultations, one stylist successfully doubled her average client spend by recommending a tailored haircare package to address specific concerns. Clients appreciated the tailored advice, and it boosted team confidence too. This shows how upselling, done right, is about serving the client better. Your team’s most significant opportunity lies in increasing the spend of existing clients. Clients value personalized, problem-solving solutions tailored to their needs, so train your staff to confidently consult and recommend additional services. Be honest and genuine—authentic upselling builds trust and loyalty.

Also, remember: never assume clients know your full range of services. Educating them about what’s available can unlock additional sales.

3. Make Partnerships with Local Businesses

A clinic I advise partnered with a local yoga studio to create a “Wellness Day Package.” They offered discounted yoga classes to clinic clients, while the studio promoted discounted skin treatments to their members. This partnership not only brought in new clients but also increased customer loyalty on both sides. Creative collaborations like these can open doors to new revenue streams. Collaborating with local businesses can help you attract new clients and boost visibility. For example:

• Offer reciprocal discounts with a nearby restaurant or boutique.
• Create package deals combining your services with theirs.

Limit these offers to quieter days or less-busy staff to ensure profitability. Partnerships benefit not just your business but also your team if they gain exclusive perks from the collaboration.

3 Ways to Cut Costs

1. Review and Renegotiate Contracts

One salon owner was shocked to find her card payment processing fees were nearly double what she could get elsewhere. After comparing quotes and negotiating with her current provider, she cut her monthly fees by 40%, freeing up cash to invest in staff training. This underscores the importance of scrutinizing contracts regularly. Never settle for your current rates without exploring alternatives. Whether it’s your EPOS system, energy supplier, or insurance provider, regularly shop around and use competitor quotes as leverage. For instance, a rival’s quote could help you save hundreds of pounds monthly when your current provider matches it.

2. Track Your Salon Team’s Performance

I recently worked with a clinic where one therapist consistently underperformed on retail sales. After a one-on-one coaching session focused on product knowledge and communication skills, she not only hit her sales targets but also became the top performer within two months. This small investment in coaching made a significant impact on the bottom line. Performance management isn’t a one-time task. It’s ongoing. Set clear KPIs (key performance indicators) for your team, ensure they understand them, and provide regular coaching. Small improvements in performance can significantly impact profitability, especially if your pay structure includes commissions.

3. Revisit Deals with Product Suppliers

One of my clients negotiated with her skincare supplier to include free training sessions for her team as part of their contract. This not only saved her money on external training but also boosted staff expertise, leading to higher product sales. Don’t underestimate the added value your suppliers can provide when you’re willing to ask. Your product suppliers should be partners in your success. Negotiate for perks like:

• Free or discounted salon sizes.
• Gift-with-purchase items to support promotions.
• Assistance with training or marketing initiatives.

The more you consolidate your purchases with a single supplier, the better the benefits you can negotiate. Don’t be afraid to ask for added value.

Profitability Takes Consistent Effort

Keeping your business healthy is like maintaining a well-oiled machine. Regular attention to your sales strategies and cost controls can make all the difference. Involve your team in brainstorming ways to cut costs or drive revenue—their ideas might surprise you!

While there are no magic solutions, focusing on these actionable strategies will help you navigate the challenges posed by rising costs and keep your business profitable.

What strategies have worked for you? I’d love to hear your thoughts—share them in the comments!

Action Step for This Week

Take 30 minutes this week to review one area of your business where costs or sales could be improved. For example:

• Sales: Conduct a quick client survey (in-person or online) to learn about their preferences and service expectations.
• Costs: Pull out your contracts for suppliers or services and check if there are opportunities to renegotiate or find better rates.

Small actions like these can lead to big savings or revenue growth—and they’re easy to start right away.

I'm Sara Biddle from The Profit Duo and I help female Beauty / aesthetic business Owners to get more out of their life and business. We know you probably feel you are constantly running between the clinic and your life, trying to give the best to both, but you feel like you are falling behind.

You need a team you can rely on and a business that runs smoothly without you doing every treatment.

By applying the Proven 9 Step Profit System, your business will significantly improve your team, results, performance, and productivity. Our tailored coaching sessions, workshops, and resources address common challenges such as team, time management, and financial planning.

I look forward to helping and supporting you.

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Struggling with team retention and hiring in your clinic?

Don’t let these challenges hold you back from running a successful, profitable business.

I’m offering a free 30-minute Aesthetic Clinic Strategy Session to help you overcome these hurdles and build a team that thrives.

Let’s create a plan that works for your unique business needs and unlock your businesses full potential.

Give me a call or email: Sara Biddle 07967 516914/ sara@theprofitduo.co.uk