Case Study: Growing a Hair Salon to Position of Market Leadership
Neil Ducoff
Neil Ducoff
Client

Mango Salon (Richmond, VA)

Problem

Pat Heaney and his wife founded Mango Salon in 2003 with eight employees. Over nine years, they have grown to 80 team members, surpassing $5 million in sales in 2012. For six consecutive years, Salon Today magazine has chosen Mango as one of the Top 200 fastest growing salons in North America. Recently, Mango was selected by Virginia Living Magazine as the Best Hair Salon in Central Virginia.

Solution

• Created company's projections and cash-flow plan and created a system to keep the company focused on managing cash on a weekly/monthly basis
• Created and implemented Team-Based Pay compensation system that rewards overall performance rather than the traditional industry approach to commission
• Created the company's Team Bonus plan
• Created the company's information-flow system of daily huddles and scoreboards
• Implemented an open-book management system
• Helped the leaders establish critical numbers and system to monitor them
• Guided the design and development of the company's culture
• Provided on-going training and education to support their leadership team

Result

Strategies’ systems have allowed Mango to:

• Develop leadership/management skills
• Have the confidence to make changes and improvements to the business
• Build a perfect culture from ground zero
• Implement timely and effective huddles and team meetings
• Trust our problem-solving skills for critical decision making
• Manage profitable growth for a second location
• Properly set and meet goals
• Achieve extraordinary customer service

CRITICAL NUMBERS May 2012

Service Sales $360,000 (monthly avg)
Retail Sales $60,000 (monthly avg)
Retail % of Gross Revenue 14%
Gift Certificate Sales $50,000 (annual)
Service Payroll (% of total sales) 35%
Average Ticket $100
New Client Retention 50%
Existing Client Retention 85%
Productivity Rate % 75%
Pre-Book Rate % 65%