Industry • Best Practice
How Reporting Tools Lead to Confident Decision Making
Mar.30,2023By Boulevard Staff
From setting prices to load-balancing schedules, salons and self-care businesses always benefit from insightful reports
The best leaders of any business don’t rely on instinct alone. While gut checks can be good — especially in self-care businesses where owners regularly interact with clients and staff — it’s better to make informed decisions backed by reliable data. That’s where reporting tools come in.
Reporting tools provide a deeper insight into salon performance, whether you’re adjusting prices, evaluating stocks of retail products, creating new service bundles, or load-balancing staff during a busy season. When beauty and self-care leaders know how to get the most from reporting tools, they won’t just be more confident in business decisions — they’ll be more likely to see better results. Here are just a few examples to support your self-care business.
How can reporting tools help reset pricing models?
The pricing strategy that a business launches with won’t necessarily be one it can rely on as a larger company. Service and product prices fluctuate over time, whether in response to growth or economic forces, and leaders must be flexible enough to adapt. Reporting tools can provide a framework by summarizing performance and revenue while estimating what salons could earn under different models. Here are some examples of how reports can inform your pricing model:
Operational costs: When overhead costs increase, service and product prices must follow suit. However, there are tipping points to consider, especially if a competitive price point is more attractive to clients. Historical income and profit statements can reveal how much the rising costs impact your bottom line and — most importantly — how likely it is that the trend will continue.
Promotional discounts: Having sales can be a double-edged sword for most businesses. Clients love a discount, so revenue tends to spike when you offer a good deal. Offer them too frequently, however, and clients will start to expect them and hold off on paying the regular price. Reporting tools can help you determine the impact of a sale on revenue and whether they are converting walk-in patrons into regular clients.
Client reactions: If you’ve previously increased prices, historical reports can help you understand how clients might react when you do so again. Appointment volume, overall revenue, and even customer service complaints can all fluctuate in response to price changes, especially if they’re sudden. Previous data on these activities can help you better prepare to keep your regulars on board during a transition.
Performance and time management: Sometimes, the bottom line isn’t just about money. For example, if your data suggests that doubling your prices will halve your clientele, you’re still making the same revenue for less effort. While that’s an extreme example, even a smaller shift can create breathing room for targeting markets or developing services you didn’t have time for before. Sales reports can help you estimate performance under different circumstances to prepare for multiple scenarios.
How can reporting tools help with retail products?
Self-care businesses are primarily service-based, but you should never underestimate the value of retail purchases. For example, while products only make up 5% to 25% of salon sales, the profit margin on those transactions is 50% on average. Even a modest retail strategy can provide supplementary income that helps a business stay afloat during slow seasons.
Of course, investing in retail sales can be like running a second business. That’s why reporting tools can be so helpful for owners looking to get more from their products; they can tell you whether clients are receptive to buying additional items and which pricing models would be successful. On a more granular level, reporting tools allow for the following benefits:
Product segmentation: Along with tracking overall revenue, some reporting tools make it possible to segment sales by brand or category. When owners know which types of products are best sellers, it’s easier to experiment with related items and high-value gift bundles.
Sales velocity and product turnover: Owners need to understand which products collect dust on a display shelf and which they can barely keep in stock. These reports make it easier to determine which products need more frequent restocks and which might require a clearance sale to create room for something new.
Likely customers: Reporting tools can help owners identify sales opportunities among existing clients. For example, if a report shows that keratin treatment clients are more likely to buy at-home hair care solutions, then stylists can attempt to upsell them with similar products.
Can reporting tools help load-balance my staff?
Optimizing schedules can be one of the most frustrating tasks for self-care business owners and managers. It’s always a balancing act between overstaffing for quiet days, which costs you in unnecessary hourly wages, and understaffing for busy days, which costs you in lost revenue for walk-in clients who can’t be seen in a reasonable time and consequently walk right back out.
When managers need to load-balance their schedules, reporting tools are essential. They provide historical benchmarks for overall foot traffic and summarize how volume might increase or decrease during slow periods. That makes it far easier to cluster appointments and minimize scheduling gaps without sacrificing quality time with clients. And that’s before we get into advanced platforms that leverage these reports to address transition and clean-up times so your staff isn’t rushing between appointments.
How can Boulevard help?
At Boulevard, we know how much data contributes to self-care business decisions. That’s why we tailor our reporting features for the industry, giving owners and managers more actionable insights from their data.
Instead of scrolling through spreadsheets, our customizable templates and filtering tools produce reports focusing on the data points you need. These tools are integrated with the full suite of Boulevard tools, including Precision Scheduling, client management, payment systems, and more. Book a demo now to see how Boulevard can improve your self-care business’ reporting capabilities.