Haircut Lessons from OPEC
It is all about business basics. It is all about supply and demand. You have a limited supply. You want to create demand that outstrips your available supply. One of the easiest ways to do this it to limit that supply. OPEC does this all the time. They cut back on oil production and the price of oil shoots up. Why can’t we do this with haircuts?
Locking down your chair to new clients can be a powerful and effective tool for building haircut business. Read that again. I am going to share a tip with you for how to do more haircuts for more money by turning away new clients. Yes. Read it again if you must.
The strategy behind locking down your chair is the upside of opening it back up again. The reason to lock down your chair is to open it back up. People want what they cannot have. As soon as word gets out that you are not taking on new haircut clients everyone will want a haircut from you. You build interest and desire by limiting access. People want to join a club that will not accept them. People want that which they are told they cannot have.
The basis of this system is to be running at 80% chair occupancy. You need to be busy enough for this to work. If you are a newbie with an empty book this tip is not for you just yet. But it is a tip you can be aware of and as you grow you can seek be able to implement it.
Timing the announcement and the locking of your chair with a price increase is a strategy that will work wonders for your occupancy and your bottom line.
Plan to implement a standard price increase of 10%. Pick a date. Implement the price increase and inform all clients that you have locked down your chair, that you are presently unable to accommodate any new clients. They will be glad to be part of the “in” group and will gladly pay the new, slightly higher, price with zero objection. They will also tell their friends. They will boast on your behalf. They will share their good fortune that they are “on your books” while others are denied this opportunity. Leave this situation alone for six months. Take good care of your clients. Enjoy your increased income from your price increase. Relax and know that the next big jump is on the horizon.
When six months have passed inform your clients that you are temporarily reopening your books to new clients. Tell them that you have limited space for a select number of new clients and you are inviting them to refer friends. Explain that you would be delighted to serve a few of their close friends who might be interested and appreciate an invitation to sit in your chair. New clients will come running. People will scramble to take advantage of this opportunity. Talk about turning the tables on marketing. How might it feel to be in control of your future and your success?
Managing and manipulating supply and demand will make you a very busy and very profitable haircutter. Locking down your chair is a useful strategy to leverage your success and level up your business. I am happy to help you make the most of this opportunity. Reach out for help.