How to Never Have a Slow Season Again

0:00So, I bought an online about 8 months ago. >> Right. >> It's located in one of the biggest shopping malls in Austria, Europe. This year's projected revenue is around 600k. >> Okay. >> My goal is 3 million in the next 2 years at full capacity for this location. And then after that, you know, nail the model and then open more locations. >> Mhm.

0:22>> The average ticket is about 65 euros. I have five technicians including myself. There's room for 10. What I need to fix fast is demand in winter slower months where more traffic is slower besides December. >> Mhm. >> I basically don't have a money model right now. No front end offer, no track channel. Over half of new clients find out about us walking by.

0:46>> Mhm. >> Instagram is more than I believed, but I don't post at volume standards, so not very surprised there. >> Okay. >> Retention is being fixed right now with my receptionist only man fam as for reviews, very content and everything. >> Yeah, that's good. >> So, my question my question is basically if this was your studio, what front end offer and acquisition acquisition model model would you run to fill the slower months or basically the whole year?

1:21>> Mhm. I'd probably run a giveaway. >> On that, I rebranded 2 months ago and I made a giveaway actually. >> Mhm. >> From the money models book. >> Yeah, what did you give away? >> A full year of service. >> Okay. >> Of nails. >> Got it. >> 2,000 euros worth. >> Yeah. >> It was pretty successful. >> Yeah.

1:47>> But I haven't really I don't really have had Sorry. I haven't had the back end yet to capture all of that demand or attention. So, people signed up. I offered them, you know, 50% off basically off the main main price. >> Yeah, as the second place offer. Is that what you're saying? >> Exactly. Exactly. But, I didn't have the receptionist at that time.

2:14>> Yeah. >> So, when people came in, I didn't do bam fam or, you know, upsell them to the community and everything. So, that was a missed opportunity, yeah. >> Okay. Well, what are your what are your uh call it ascension or retention rates now compared to then? >> Well, I didn't really have tracking attribution at that point. I just hired the receptionist this month.

2:40So, um what I have from, you know, just the the um the calendar, the >> Yeah. >> uh software, so >> I'm going to cut you off. Yeah, I'm just going to cut you off cuz I'm pretty sure it was just better than it was before, right? >> Yeah. >> Okay, got it. So, if you redo the math on the first the first uh giveaway, if you had the same LTV that you have now that you fixed the back end, would it have been even more profitable than it was?

3:05>> Of course. >> Okay, then just run it again, dude. >> Okay. >> That's it. Just run it again. >> Yeah. Um so, I have a question about that because I was at a marketing workshop and Tony actually told me he likes to to run, you know, a front end like $139 uh offer, you know, to to visit and then rolled out into continuity. >> Sure. >> Would you think that's better to market or just the giveaway is just what's the best?

3:34>> matter, man. Like, so so I you're you're asking a question that the market will answer for you the moment you run the ads. So, I cannot tell you which offer will out convert. I can tell you that giveaways do really well, and they already did even though you didn't even have a back end, it still worked, which is like pretty good, you know, data for you. Um but, fundamentally, you just need to make the offer, run it to a landing page, and then probably have automated follow-up and scheduling. And then as soon as you have a good attach rate from the people who come into the nail salon getting on the continuity or doing van fam on the back, like that's probably all you're going to need. And you can run like if you have two front-end promotions to your point, like if Ed gave you a different front-end promotion, just alternate them.

4:11Just do one one month and do the other one the next month. Like very simple. Like the more front-end offers you have that convert, the better cuz it just gives you more more variety in the in in the marketing, especially in a local market. Um, but the thing is is that no one knows you exist. So, we have this big fear of like, "Oh, I don't want to saturate the market." Like, "Dude, no one even knows that you are here." So, um, you can either alternate them or you can just run it until the wheels come off. Both of them work. It doesn't really matter. It's just what's LTV to CAC. If both of them are profitable, run them.

4:39>> Uh-huh. Okay. Um, so the next question is, uh, you talked and even Ed talked about you were looking to buy a nail salon chain. >> Yeah. >> So, would you mind telling me a bit more about that? Like what was the money model, the comp structure, and everything like that? >> The biggest thing that separates the businesses that you have, like from some other businesses, that you have low-skilled labor, right?

5:04Nail techs. And so the big problem with your business, um, and businesses like yours is that people become very loyal to the nail techs and less so to the business. And so if the nail tech leaves because their book gets full enough, they just do the math and they say, "Hey, I could just do this on my own and not have to pay a split or whatever to the store, right?" >> Yeah. >> And so in order for your business to be successful long-term, and that's what the the the chain that I was looking at had nailed, was that they had figured out, uh, a very elegant career path for nail techs to make like 70,000 plus per year. Now, it took obviously time for them to do that. It might be take two or three years and have to do certain amount of nail jobs in order to level up in the in the level and type of nails that they can do. But every X amount of, you know, nail sessions they ran, they would qualify to learn another more valuable skill set so they could upsell that and then make more money per hour.

5:55And then as they develop more skills, uh they can sell at higher ticket and basically their hourly would continue to get up go up and so too with their split. And so you have to be able to paint that career path so that it's it's You don't need to You don't want to make it hard for people to leave. You want to make it easy for them to stay. >> Right. >> And that's going to be the big issue. I'm just telling you right now. Like I actually don't think like finding demand for nail salons is not a problem. It's like finding demand for cleaning is it's it's very easy to find people who want their houses cleaned. It's very hard to find labor that is willing to clean houses well, not you know, not steal, speak English, blah blah blah blah blah at least in the US, right? And so you are in the same type of business which means that your true model is going to be around talent retention. Like the the you know, the front ends for your business is not going to be difficult.

6:38You should have pretty exceptional activity to CAC um especially if you're following the stuff that we're outlining which it seems like you are and and you know, you've improved it. Um but long term you need to a talent model so that uh people can continue to make more money and then eventually and this is the goal, you can put people into new locations where they become managers and they can get, you know, 5 or 10% of the profit. Now, to be clear, I'm not saying they're going to be an owner, they could be owner-like. Does that make sense? >> Yeah, yeah. I basically know already all of this long term.

7:05>> Yeah. >> But I didn't really know how to fix the short term >> Yeah. >> to you know, even survive through the slower months because >> Yeah. >> my basically my limiting belief still till now was my entire family owns nail salons actually in Germany. Um they say always like, you know, winter and slow months and everything you got to just survive and then like and and when I told me that this isn't a seasonal business it just broke everything. It shattered my, you know, belief and but I still didn't know how to do it so

7:36>> You have to generate demand. That's all it was. You ran a giveaway play. You didn't have a back end. You need to run it again. Like there's enough people in Germany or in your area to fill your one nail salon up. And so what you want to do is make everybody else who has a nail salon feel like winners in bad season, but for you it's always hunting season. >> Right. >> If you know how to generate demand, things are not seasonal. Think about that for a second. If you know how to generate demand profitably, you're never seasonal. You're always at a supply capacity. >> Yeah.

8:03That's true. >> And Steven Queen, it's Austria not Germany. No one gives a All right, the point is is that the country like nail salons work like nail salons. >> Yeah. Yeah, my my time is 10 times higher than I can handle. >> Good. >> I'm at full capacity, so >> So let's go get that. Go bring them in. Make it rain. >> Yeah. >> All right, brother. >> Okay. >> Appreciate you. >> Thank you very much. >> If you like this video and you're a business owner who wants to break through your current revenue ceiling, I distilled every lesson from scaling 10 businesses past 10 million and three businesses past 100 million into a completely free scaling road map that I've used to go from zero to one, zero to 10, and zero to 100 plus. And so you can click here and you can check it out.

8:41Again, absolutely free. And since you're a business owner, appreciate you and enjoy.