Are bundling services the best way to boost your business?

Packaging or bundling services together does offer your business lots of benefits and supports client perceptions about value.  However, without a clear strategy and objective, this practice can become a problem for your business growth and client retention.

Basic menu-style pricing creates transparency of your business which is received positively by clients, while a “value-based” price of bundled services gives your salon a good hook for new clients, new services or provide a seasonal boost.  

Services bundled into a packaged price always favour the seller (you, the salon owner), as even if there is a slight discount or one service included for free, from the efficiency of the salon, knowing the set of services booked and paid for, there will be no reduction in services once the client is in the salon.  This makes resourcing staff, product and time more efficient. Further, there should be a select set of up-sell services to each bundle that again, can streamline how you resource the salon that day, and fit easily into the team KPIs.

Plus there is a simplicity to the services that is very easy for the clients to understand. 

How long do you run the promotion or bundle services for?

Are they an introductory offer to be used to attract new clients that are then up-sold in salon when rebooking their next appointment?  If not, can your salon’s operating budget support the discount long term, and what’s the client’s level of indifference when you do want to make a change to the package or pricing?

Furthermore, does your staff understand the purpose of the package - are they supporting your business objective when one-on-one with the client?  Are they fully utilising it at the back end of the sale, up-selling services or working the client back to the al la carte menu pricing for all other services.

There’s no right or wrong in including services packages in your offering, but they need to be designed with a clear objective such as increasing sales and client retention, be on offer for a limited period of time, and your staff need to understand how to move the client away from the package when the time is right.