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Daily Deals -- Two Schools of Thought
by Jessie Burkhardt
Even if you are not familiar with daily
deal sites, you have probably at least heard
the names Groupon and LivingSocial.
Every site works a little differently, but
here is how an idea of how this concept
works:
• You create a deal / coupon that you would
like to offer. These deals usually have to
include deep discounts (no ten percent off
discounts here).
• The deal is offered for a limited time (a
day or so) to create a sense of urgency and
posted by the daily deal site.
• Consumers can purchase that deal from
the site -- NOT directly from you. Then
the consumer brings the deal to the
merchant (you) for redemption.
Many service providers, like nail salons,
are trying this type of promotion -- with
mixed results. Some people thrive on these
deals, while others will never use them
again.
Pros and Cons of Daily Deal Sites
On average, daily deal sites are trending
a whooping 14 percent retention rate -- far
outperforming a traditional coupon (at only
a one percent retention rate). Clearly, these
coupons are reaching your target market.
However, as mentioned previously, discounts must be substantial to be considered
for the site. The daily deal provider also gets
a percentage of the sale. That does not leave
much for the merchant (you).
“Only 55 percent of businesses reported
making any profit off of the promotions,
with 27 percent saying that they lost
money on the deal and 19 percent reporting
breaking even. For many companies, even
if they are turning a bit of profit, the drain
on resources and time spent administering
the promotions are not worth the modest
return.” 60 Second Marketer
While the deep discounts and fees
keep this from being a revenue generating
promotion, it can be a great clientelebuilding tactic. Visits to daily deal web sites
are trending up 600 percent with millions
of people looking for the right offer in their
area. The caveat here is that you need to
have systems in place to capitalize on these
new contacts. Do you have a database in
place so that you can communicate continually to these new contacts on your own?
While beauty service providers reported
the lowest percentage on making a profit
with daily deal sites (around 44 percent),
there are some tactics to employ that can put
the odds in your favor.
“First, make the discounts on higher
priced items that are more difficult to move.
Only 36 percent of discount shoppers spend
over the value of the deal, so up selling
once you get them in the door is difficult.
Instead, discount the high-ticket items to
ensure customers spend more.
Additionally, if the deal site allows you,
make the discount lower. Discounts closer
to 25 percent are much more manageable
while still providing enough incentive to get
customers in the store.
Finally, cap the number of coupons
available for purchase, knowing that many
more people will redeem this type of
coupon over traditional coupons.” 60 Second
Marketer
On a final note, remember that consumers who use these sites are normally very
socially oriented online. Many of the sites
offer forums where customers can rate or
review their services. How much are positive customer testimonials worth to you?
Out of sight… out of mind,
and out of mind can
mean out of business.
“A man who stops advertising to save money
is like a man who stops a clock to save time.”
— Henry Ford
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6 | APRIL 2012 | NORTHWEST STYLIST & SALON
Natural Curls vs. Straight Locks
Strictly for Students
LeAnne Velona
Increase Your Income by
Becoming Knowledgeable in
Smoothing Treatment Options
Smoothing treatments have been all the
rage recently. With so many curly-haired girls
looking for sleek and straight locks, or more
easily tamed curls, now is a perfect time to
consider specializing in working with curly
hair or becoming certified in using smoothing treatments.
Smoothing treatments have become
an overnight sensation, and this newfound
popularity has been great for business.
Keep in mind that in order to recommend the right smoothing treatment to your
client, you must first understand the type of
curl you are working with. There are several
different types of curly hair – curls can be
classified as wavy, curly, curly/ kinky or kinky.
Wavy hair forms throughout the hair in an
“S” shape and tends to lie close to the head.
Wavy hair can be thin and easily handled,
medium-textured with a tendency to frizz, or
thick and coarse and resistant to styling.
Hair with well-defined, bouncy curls
in a definite “S” pattern is classified as curly
hair. This type of curl can either be big and
loose or medium curl, ranging from bouncy
ringlets to tight corkscrews. Hair that is dense
with tight curls in corkscrews is classified
as curly/kinky hair. This hair type is more
challenging to blow dry straight and tends to
be drier and fragile. Lastly, kinky hair is very
tightly coiled, wiry and extremely fragile.
Now that we have identified the different
categories of curls, we can look at the various
types of smoothing treatments available for
each type.
Thermal Reconditioning
If your client is looking for something
more permanent – to last until their hair
grows out – then thermal reconditioning,
or a Japanese straightening treatment, is the
treatment you would want to recommend.
This treatment breaks down the molecular
arrangement in each hair follicle with the
use of a chemical formula. The hair is then
flattened with a ceramic iron and afterward
a neutralizing serum is added to keep hair
straight. Be sure to ask your client what they
have done to their hair in recent months as
thermal reconditioning is not recommended
for hair that is bleached, highlighted or
overly processed.
Keratin Straightening Treatments
Keratin straightening treatments use
liquid keratin and an aldehyde solution,
which is then sealed with a flat iron. After the
product is applied, hair is then blow dried
and flat ironed. The process eliminates frizz
and helps cut down on drying time. A keratin
straightening treatment is ideal for the client
who is looking for straighter locks that last
about two to four months and for clients who
want hair that maintains volume and body
and can still be worn curly or wavy. Unlike
the Japanese straightening treatment, keratin
treatments are typically safe on color-treated
hair and all curly-hair types – from waves to
tight curls.
Natural Smoothing Treatments
In response to the buzz of safety concerns
of keratin straightening treatments, most focusing on the levels of formaldehyde released
during the treatment, the “straightening”
treatment is morphing into the “smoothing”
treatment. Smoothing treatments work with
the cuticle, not the cortex of the hair.
The newest smoothing treatments are
using both completely natural and environmentally safe. With no harsh chemicals, these
semi-permanent treatments sound like a
promising solution to eliminating frizz and
managing curls while being safe for your client and your surroundings. It is also safe for
color-treated and bleached hair, and results
can last about two to four months.
Salon Blowouts and Deep Conditioners
If your client is on the fence about committing to a smoothing treatment, consider
suggesting a salon blowout or a deep conditioning treatment for starters. Both salon
blowouts and deep conditioners will only
last as long as the next shampoo. And, a deep
conditioner will restore moisture to curly hair
so there are no risks here for your client.
With all the controversy surrounding various types of straightening treatments, becoming knowledgeable, trained and accredited in
these treatments will help increase your client
base, your clients’ trust in you and ultimately
help boost your income. Show your clients
and your boss that you are valuable.
Work hard at building your client relationships by giving them the best in customer
service, showing them new products that
work and demonstrating your knowledge of
the latest treatments.
LeAnne Velona, director of esthetics and massage therapy education for
Marinello Schools of Beauty, has been a certified licensed esthetician for
over 18 years and is also a licensed holistic health practitioner. For more
information, visit www.marinello.com.
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