Why Tech Literacy in Owner = A Successful Salon

Within the Salon industry, so many of our salon owners are getting left behind in terms of technology advancements, simply because they don’t understand it. There’s a huge disconnection between the technology companies who provide business-advancing solutions and owners who are holding back out of fear of the unknown.

This fear is a huge factor in what’s keeping salon owners unprofitable with businesses that either leak money or slowly die off as they fail to meet the demands of their customer base. What’s needed is business education; both financial and technological. Education to remove this fear factor and empower these salon owners to use rising technology solutions to help them in all the places they currently don’t know they need.

Education is Empowerment

But how can we do that?

Well, it’s first it’s understanding how technology companies make money. Essentially there are two different types of businesses, SaaS companies (SalonScale) and transactional companies (Stripe/PayPal).

The software service companies charge you regularly i.e. monthly like Netflix. This is where a low fee is charged on a regular basis because there’s a large amount of the market who are willing to pay this small amount, meaning the company can cover their costs just with this and still make a profit. To support their service, they use technology to communicate with the customer, as well as onboard you, and even manage your account. Meaning there is very little overhead on top of the original service.

However, if you require hand-holding in a software service company i.e. a white glove service, or any kind of human touch really, that's where the real expenses start to come in. So with companies like SalonScale, to keep costs low there is a requirement for the technical literacy to be high with the consumer to reduce the need for handholding.

This is key for salon owners to understand. It's not that people (or us) don’t want to help you when you’re freaking out and feeling like the technology sucks. It's more that a SaaS company doesn't have the margins built into their prices to have people just hanging out to answer your questions. Almost like having a stylist hanging out on the floor with no clients booked waiting for services to walk in. The services are priced to a point to make sure it’s affordable for you, and we really want to keep it that way. So we hope you can meet us half-way.

In comparison, in transactional companies, the typical average contract value is over $25,000 per year. This is the amount of money they're making off of you from all your transactions. This high value means they can pay an account executive to take care of your business (and you) in all those moments when you want to pull your hair out.

So if you are working with a company like SalonScale, and the highest package we offer is 1,499 USD for an entire year, and if you were in the shoes of SalonScale, how would you afford a sales rep to take care of one salon at a time?

You can't, right?

So the trick is to understand how software companies work in the Salon space so you can better understand the service you’re paying for and the value of your and their time.

Because the only way a SaaS company like SalonScale could act like a transactional company is to take transactions from you i.e. a cut of your earnings to give you that human touch or to keep trying to elevate the technical literacy needed. Not something I think any of our Salon owners want us to do.

The Power of Tech Literacy

So what can Salon owners do to get what they need in terms of technical literacy? I suggest starting with what's already on offer.

For example, you could ask AI technology (chat CPT) to build you a task list of how to add a new booking software to your salon. It will like give you step by step.

If you struggle with technology, then start simple and use the resources your software companies are giving you already i.e. knowledge bases, videos, podcasts, and interviews. They have things where you can learn everything you need to know and you don’t have to spend an additional cent.

However, remember the power of technical literacy isn’t just about helping to keep costs low for the company you’re paying, it also has a direct impact on your business and will help you save money.

Working On Your Business

A lot of salon owners don't book days to work?on?their business. One of the things I used to do was always block one day a week where I was just working on the business, so no clients that day. I had a whole routine where I would turn my music on, put headphones on, and get into the zone to finally get these things done. For me specifically because I have ADHD, it was hard to switch from the highly creative work of cutting and styling to working with logic, so I need to create a routine and make it as enjoyable as possible to work through the plans and the numbers. Though this can work for anyone who struggles with the change in creative focus.

However, this is a shift you need to do as a salon owner and technology can help. Instead of being afraid of it, I want all salon owners to lean into it, simply because the sheer positive impact it can have on the business and yourself as a whole. It can create space for a day to work on your business, it can support your team when you’re not there and it can put thousands of dollars of profit back into your salon.

Top Tip:?Make it clear to the team that you’re not to be disturbed on ‘Working On the Business’ days, a little sticky note can make it more playful but still set clear boundaries from the start!

Call in Support

If all of this still feels overwhelming, but you feel the drive to do it, then I wholeheartedly suggest joining a community group. Join other salon owners, so you can support each other in this growth. I've seen people make their own and simply connect over the technology they use in their business i.e. SalonScale.

If you're a salon owner trying to build systems and you're worried about competition in your city, then call another city, another town. One you admire, and ask them for coffee. Ask them how they got there. Make connections in other markets other than your own, with people that are going through the same things you're going through.

Top Tips for Salon Technical Literacy

• Book a day a week to work on your business
• Watch YouTube - a wealth of knowledge at your fingertips!
• Access the knowledge bases of the companies you’re paying.
• Ask AI to help you learn
• Join community groups to meet others on the same path

Now that everything's in the cloud, with the flexibility to work from anywhere, access to free knowledge, there’s truly no excuse for a salon owner today to not leverage the technology available and get to that next level.

The only thing is comfort levels. It's probably going to be a little uncomfortable, but growth happens at the edge of your discomfort. And if you want your company to grow, you must lean into these kinds of things that are around you. Trust me, it’s worth it!