Why Tippy


Why Tippy you ask? Let’s find out…
Special offer below…….

Written by David Tashijan

TIPPING : The Third Salon Vertical

It exists every day in the majority of salons. Ask any salon owner, “ What businesses are you in?” Inherently, owners answer….”We have two verticals in our salon - 1) Services; and 2) Products.”And smartly so, that is where salon owners thus focus the majority of their efforts.
But at the same time, ask the owners what their #1 issue is, and they consistently respond, “ Hiring and retention.” Obviously, if this is their top problem, then it warrants a disproportionate share of their focus. But the problem persists in the industry. So the question is….what’s everyone missing?
The solution ? Coming to the realization that a third vertical exists within salons. And this often forgotten vertical can amount to as much as 20% of the salons’ revenues (and 20-30% of the service professional’s compensation). This third vertical is TIPPING. And properly focused efforts here can result in as much as a 30-35% increase in tips. And…what better way to increase retention and attract hiring than providing tools for the service professionals to “Optimize” tips.

Why has such a significant vertical not been the focus of salons until recently ? It’s a confluence of industry factors. But the main culprit is the customer’s migration from cash to plastic. This was not an issue in the past. Service professionals were being tipped with cash, and everyone was happy :
* The salon owner was not paying processing fees on tips;* The service professional was receiving immediate gratification, both personal and pocketbook ; and* The customer was assured their service provider knew how much they tipped.

And to be perfectly blunt, tax compliance was not as much an issue with cash tips.
Now enter credit cards, and every one of the above goes away :
* The average salon owner ($700,000 in revenues) is paying upwards of $3500.00 in tip processing fees;* The service professional now waits for bi-weekly payroll to receive their tips; and* The customer has no assurances that their service provider knows what they've tipped (so they tip less)
And…tax compliance is now a must due to the transaction's transparency.
So this third vertical is a modern mess. Salon owners do recognize this and are trying to solve the above issues. Typical attempts include the dreaded ATM, not allowing tips on CC, and also playing bank by cashing out their service providers every night. All obviously imperfect and unsustainable solutions.
Enter a new player in the market…TIPPY. It’s software and kiosk was founded and designed in-industry as a solution for a seven-salon chain in PA. It had such early success with the salon's 225 service professionals, that it has been rebuilt to scale. And in the last several months, Tippy has already been installed in over 200 salons nationwide, and is poised to be in 1,000 salons within the next 9 months. WHY ? Because it was built by people that were experiencing first-hand everyone's pain.

With Tippy :
* The salon owner no longer pays processing fees on tips;* The service professional receives their tips every next business day into their personal bank account; and* The customer knows their service provider sees what they tipped immediately
And…tips are up an average of over 30%, so there is now ample funds to be complaint with Uncle Sam and still come out whole. It’s a win for everyone…Happy Owner, Happy Service Professional, Happy Customer !

ARE YOU READY TO GIVE TIPPY A TRY? We have a one time offer that will literally knock your socks off.

Salon Scale

You know I like to bring you the good stuff. Any tips and tools to help you grow your business and save you money. So check this out!

Written by: April Morrison
Salon Scale

In 2017 Founder Alicia Soulier was facing the same problem many salon owners have today. How do I control the hair colour being free poured in my salon, make sure my costs are covered, and reduce waste?

The solution to this problem? SalonScale Technology inc. A Mobile App created by a salon owner for a salon owner. We want to shift and change the way we charge our clients coming into the salon. Our mission with SalonScale Technology is to save one salon at a time.

How you might ask? By separating the parts (color) and the labour (time, experience, and demand). It’s time that we unite as an industry and start charging accurately. I know many people out there reading this can relate to a time you had a customer in your chair and you spent longer on her hair than anticipated, you used twice as much colour, and still only added an extra $10-$20 dollars onto her regular price that she usually pays.

The problem about this scenario that we’ve all faced time and time again - its not only the “oh well I guess $120” or “maybe like $175”. It’s the fact that not only are we losing value on ourselves but our business is in the negative because of it.

f you don’t start separating your parts from labour, your salon can’t be profitable. With over head running as high as 35% and because of rising colour trends product costs are now running as high as 17%. Thats 52% just in shear cost of running your business. If you are paying your staff 50% commission that means on average your losing 2% every time a color walks out the door. That simply means you aren’t profitable. In fact your most likely running in the negative.

It’s imperative that we change the way we do business, and its important to understand the exact cost of all parts of your business. Here at SalonScale we are on a quest to help get you where you need to be. After only 1 year since launching we have had over 500 signups, over 30,000 submitted colors, and over 1000 users on our mobile app. Join the SalonScale movement today.