Monthly Archives: October 2013

Operation Get Profitable: Day 8 of 8

Today was day 8 of 8 of Operation Get Profitable (OGP) where I visit 10 salons a day for 8 days.

I almost didn’t do any selling today. I was up with my 5 month-old son last night from about 3am to 5am, so today I’m tired. I also had some errands I needed to run or else it would bite me in the ass later, so that left me short on time. Also, I think I misplaced my balls somewhere and my courage level as of this morning was somewhere between “baby” and “little girl.” So I decided to just stay home and cross off many of the long-overdue items on my around-the-house to-do list. For this I am ashamed of myself.

But then I noticed there was a new episode of Bootstrapped with Kids, “The podcast journey of two dads bootstrapping a SaaS business (or two) to achieve financial freedom.” Since I’ve been ravenously consuming this podcast for the last couple weeks I know that the hosts, Brecht and Scott, tend to read their iTunes reviews aloud in their podcast, and I recently left a review, so I thought maybe they read it. Not only did they read my review but they talked about me for an amazingly long time and Brecht mentioned me having gone “balls out” and having “put my big boy pants on” with this Operation Get Profitable thing. So basically Brecht said I was out there being kicking ass but in reality I was at home being a pansy. So I decided to stop being a pansy and put my big boy pants back on. So Brecht and Scott depansified and repantsed me. Thanks, guys. I owe you one.

For certain reasons I decided that it would be a good idea today to do 100% cold calling instead of canvassing. (Maybe my big boy pants weren’t all the way on?) I started by calling back all the warm leads I have right now who I hadn’t called in the previous 24 hours. I was 0 for 3 on that but I’ll pick back up next week with those. Then I just started googling hair salons and trying to talk to the owner. I believe I called a total of 11 salons today and I got through to one salon owner. I decided to try my How to Open a Hair Salon article idea and the person I talked to did give me some material for my article. None of the other owners were available. It really is difficult to talk to the salon owner over the phone.

I kind of want to explain my reasoning for trying the calling instead of visiting thing. I seem to be running out of salons to visit in my area. There are plenty I still haven’t visited, but at this point they’re so geographically scattered that it will be woefully inefficient for me to drive around to all of them – I’d be able to get to like 4 a day. I suppose that’s not too terrible. I guess I’m just having a hard time facing the fact that in order to get one solid lead it takes a ton of driving and a ton of visiting duds, and then it takes a lot of solid leads just to get one sale. I guess I might as well admit to this reality and stop looking for alternative ways to sell until I get profitable (which was kind of the whole point of this OGP thing, YOU IDIOT!). (Idiot = me)

So this week I believe I visited 11 salons. That combined with last week’s 24 is a total of 35, which is quite a ways short of the target of 80. That’s lame of me, but just because this arbitrary little burst of activity has reached its end doesn’t mean I have to stop selling. I intend to continue in the coming weeks.

So was Operation Get Profitable successful? Did I actually Get Profitable? Anti-climatically, I won’t know until a while from now. I got one customer but I don’t know whether or not the next customer I get will have been a result of OGP. If any one of the five strong leads I got out of the deal becomes a customer, then yes. Otherwise, no. Whatever happens, I’ll be writing about it here.

New selling idea: catch stylists when they’re about to open a salon

Over the last several months I’ve been I’ve been working to get Snip to rank high for the keywords salon software and hair salon software. I’m currently doing tolerably well (in Huckleberry Finn parlance), ranking 10 and 6 for those keywords, respectively, for about 1300 and 500 impressions, 30 and 16 clicks. Achieving these results required a surprisingly small amount of knowledge and effort.

As anyone who has at least a basic knowledge of SEO knows, it’s not necessarily all that great to rank for such generic keywords, though. To give a concrete example, someone searching for bmw is probably just browsing, while a person searching for red 2003 bmw m5 probably has an actual intention to buy. Does someone searching for salon software have an intention to buy? It’s hard to say, but my guess would be that she’s just in a research phase. I’m not too sure what salon software‘s equivalent to red 2003 bmw m5 would be, though.

Anyway, I was trying to think the other day of keywords other than just variations on salon software for which I could try to rank. I wanted long tail keywords, specific terms indicative of an intent to buy. After some brainstorming I thought that how to open a hair salon might be something good to rank for since people who are just opening salons are probably likely to be in the market for scheduling software. How might I rank for how to open a hair salon, I wonder?

My first thought was, “Well, I’ve never run a hair salon or even worked as a stylist, so I’m pretty thoroughly unqualified to talk about this. NEXT!” But then I forced myself to think a little harder and I had an idea. “I don’t have to generate credible advice on how to start a hair salon,” I thought. “All I have to do is present credible advice on how to start a hair salon. Maybe I can interview salon owners and see if they have any advice I can use in a blog post.”

And that’s exactly what I started to do today. I’ve had a few Google Alerts set up for a long time that send me articles about new hair salons opening up. I dug through a few of those and called the salons, asking for the owner. I did get through to one owner. I told her what I was doing and she was happy to provide me with a good amount of advice on opening a salon. I figure if I get 10 or so different perspectives on opening a salon, that’s pretty good for a credible article.

There’s another important takeaway here: although I’m purposely avoiding selling Snip to these people I’m calling (since that would just muddy the waters and take away from my purpose of collecting content), I think I may be onto an effective mechanism for getting the decision-maker on the phone. Contrast the following two approaches where I’m trying to get salon owner Susan on the phone:

  • “Hi, this is Jason Swett. I’m calling for Susan. Not there? Okay, well I was calling to see if Susan was interested in salon software…” (self-serving purpose)
  • “Hi, this is Jason Swett. I’m calling for Susan. Not there? Okay. I’m writing an article with advice for would-be salon owners about how to open a hair salon. I was hoping to chat with Susan for about five minutes and see what advice she might have…” (positioning Susan as an expert worth listening to, making Susan feel important, approaching with non-threatening purpose)

I wouldn’t realistically expect a call back from either of those messages, but I think the latter approach would make me seem a lot more likable, since people like people who make them feel important. If I chose to do so after chatting with Susan about opening a salon, I bet I could ask her a couple questions about salon software and she would be willing to talk openly about it since her anti-salesperson defenses would not be up. Only experience will tell if this is actually a good approach. I haven’t tried it enough yet to be able to tell.

Anyway, my point is that I think if I can put up a blog post that gets to be the first result when people search for how to open a hair salon or similar, they’re really my (hopefully) good advice from seasoned salon operators, say, “Hey, what is this site, anyway?” and consider Snip as their scheduling tool for their new salon.

Operation Get Profitable: Day 7 of 8

Today was day 7 of 8 of Operation Get Profitable (OGP) where I visit 10 salons a day for 8 days.

I’ve learned a lot over the last several days, which is interesting because I didn’t set out on OGP with the intention or expectation of learning anything. For one, I learned what makes a good prospect for me: a medium-sized commission-based salon. I had kind of a fuzzy intuition that this was the case but the 35 salon visits I’ve done since last Tuesday have really helped sharpen my perception in this area. I also learned that between doing a salon visit, putting the salon’s contact info and notes into my CRM and hand-writing a thank-you card to that salon, 10+ salons a day is probably not a realistic target. I don’t know what the reasonable ceiling is, but it seems to be below 10.

I decided to take a slightly different approach today. In the past I would visit as many salons as I could all day, then deal with thank-you cards, etc. the next day. This was fine when I used to do one day of sales in a week, but when I’m doing sales for multiple consecutive days, any card-writing I put off a day bites into the next day’s sales time, so there’s really no time saved. So today I visited just 6 salons, and then I went home and wrote all the thank-you cards and did all the CRM administrivia I needed to do. I like this approach better, since at the end of the day my work is 100% done and I don’t have any loose ends nagging at me from the back of my mind. I can start tomorrow with a clear head.

Since I’ve already picked all the low-hanging fruit in the town I live in, Grand Rapids, Michigan, my work today was done in nearby Holland, Michigan. As seems to be the case eerily often, the first visit of the day was by far the most promising. In fact, I can’t remember a more promising first visit, ever. The owner happened to be free when I walked in, and the salon was still using pen and paper. Although they hadn’t gone so far as to pick out a software solution yet, they said that it was something that was on their minds. At what better point in time could I hope to catch a salon? The owner and the woman who I took to be the receptionist were both a little older (but if either of you are reading this, neither of you looked a day over 29), and they admitted to being a little afraid of technology and nervous about switching to a computerized system. Luckily for everyone involved, I’m an old hand by this point at assuaging the fears of technophobic salon operators, and I addressed their objections like the hardened sales professional that I am. The owner had to duck out just a few moments into the convo, but they’re definitely a strong prospect and I will be contacting them soon.

Holland is kind of a richer town and richer towns mean high-end salons and high-end salons seem to always already be using Millennium. I think 3 of the salons I visited today used Millennium, which is an unusually high number. I used to have a “go to where the money is” idea – visit the nicest salons – but now I know that it’s usually a waste of time. I did get one other decent prospect, though, so out of 6 visits I have 2 prospects. That’s actually a pretty good ratio.

I also have another new selling idea that’s been slowly congealing in my mind over the last few months. Things finally clicked sometime today and this afternoon I pulled the trigger. I’ll be writing about this separately.

Operation Get Profitable: Day 6 of 8

Yesterday was day 6 of 8 of Operation Get Profitable (OGP) where I visit 10 salons a day for 8 days.

The report for day 6 will be pretty brief. My car was in the shop all day, so I wasn’t able to do any canvassing. I did use the day to move Snip forward, though: I did some follow-up calls, I fixed a bug that had been bugging me for a while, and I added a certain feature I told a couple customers I would add soon.

Today is day 7 and I’m about to hit the road.

Operation Get Profitable: Day 5 of 8

Today was day 5 of 8 of Operation Get Profitable (OGP) where I visit 10 salons a day for 8 days.

Today (Tuesday) involved a couple special challenges. First, I had had a long list of time-sensitive things to do yesterday, and since most salons are closed on Mondays, those are my days to do whatever non-sales work needs to be done. Unfortunately yesterday my 5 month-old son was sick and I had to keep him home from daycare, meaning zero to-do items got crossed out. This list of things included things like “fix highly visible bug” and “fulfill promise to existing customer”, so I can’t really justify putting four days of sales work ahead of these things in the priorities.

Another challenge was that I woke up with my son at about 4:45 this morning and didn’t go back to sleep, and since I’m a total baby, I can’t operate like that and I knew I would eventually need a nap.

I might have chosen to take today to do my coding work, but one of my car’s front wheels has been making this disconcerting buzzing sound which I suspect to be a bearing, which I understand can be dangerous if not fixed, so I have to take my car in on Wednesday to have that looked at. This means Wednesday is probably mostly shot sales-wise, so I might as well use that day for coding. So I decided to use today for sales. I feel like this stuff is all just excuses not to do the scary sales work and I’m being irresponsible, but I guess the actual responsible thing to do is to get my car fixed and not kill me and my kids, so intellectually I know I’m prioritizing things correctly but my gut tells me I’m stupid and lazy. Fuck you, gut!

Luckily for me, I did my visit planning last Friday, so today I didn’t have to spend any time or effort thinking about where to go. I visited Rockford and Sparta, Michigan, and hit a total of 5 salons before I felt like I was out of places to go (some of the places on my list were closed, out of business, or just obviously too small), and at that point I came back home and took a nap.

By the time I had taken a nap and eaten lunch and everything, it was about 2pm. Oh yeah, another thing that fucked with my day today was that I had to fix a flat tire on my bike because tomorrow when I drop my car off at the shop I’m going to have to have my bike available so I’m not stuck twiddling my thumbs at the shop all day. So as much as I didn’t want to have to fuck with fixing my bike tire today, I had to do it. Unfortunately I had bought the wrong size inner tubes and I had to go back to the bike shop and get the right ones (after furiously trying to finagle a too-small tube onto my rim for about 20 minutes like a pathetic idiot), and that ate up, I don’t know, about a billion years of my time. By the time that was all over it was too late to do any more sales, so I just coded the rest of the day, and wrote this blog post.

So today was somewhat angrier and less productive than normal, but hey! These last 5 days of sales have en masse been more productive sales-wise than any 5-day period in Snip history, so I don’t feel too terrible about it.

Operation Get Profitable: Day 4 of 8

Friday was day 4 of 8 of Operation Get Profitable (OGP) where I visit 10 salons a day for 8 days.

Summary: FUUUUUUUUUUUUUUUUUUUUUUUCK!

Friday, for lack of a better way to put it, sucked. All week I had been pounding the pavement hard and “running the machine” at 100% capacity, and I had a backlog of “maintenance work” to do, like writing thank-you cards (I send hand-written thank-you cards to almost everyone I talk to when I do sales) and entering into my CRM all the salons I had visited. I also had to plan out the next salons I was going to hit, since I’ve already picked all the low-hanging fruit in my geographical area and it’s no longer practical to simply drive down a busy road and look for salons.

All this piled-up administrative work added up to several hours of work and I think it was about 3pm by the time I got done. Since at this point I’m having to drive to neighboring towns to find fresh salons, and since my wife had asked me to pick the kids up from daycare at 5:30 (I’m normally the dropper-offer, not picker-upper), this would have left me with maybe a one-hour or hour-and-a-half window to visit salons, which wouldn’t really have been worth the overhead of driving to another town. Even though I felt like a total loser about it, I decided to use my time more efficiently by staying home to do other crap I had been needing to do anyway (clean inbox, etc.). The day felt really irresponsible since I didn’t do any actual pitching to prospects in person, but I do realize that the work I did was 100% necessary and it would actually have been more irresponsible not to have spent my day the way I did. My fuckup wasn’t that I got lazy on Friday; my fuckup was that I ran the sales machine too hard earlier in the week. (By “the sales machine” I’m referring to “Jason Swett, Sales Machine”.)

So I guess even though it’s physically possible to visit 10+ salons in a day, I was kind of forgetting that every time I visit a prospect I’m also committing to writing a thank-you card, entering the info into my CRM, and potentially planning the visit beforehand. Taking those things into account, 10 is maybe the practical limit, and on those days when I did the “extra” one or two salons beyond 10, I was simply stealing time from myself. In the future I might shoot for a stricter and more regular schedule, even if that means scaling back initially and then throttling up until I find the “speed limit.” (Why all the quotey metaphors today?)

So the total number of salons visited in week 1 was 24. This is 16 short of my target of 40 but still a record high for a single week.

Operation Get Profitable: Day 3 of 8

Yesterday was day 3 of Operation Get Profitable (OGP) where I visit 10 salons a day for 8 days.

The first salon I visited yesterday was kind of an interesting visit. I’ll call them Salon M. I had first visited Salon M two days ago, but they were busy at that time so they told me to come back the next day, which was yesterday. I talked for quite a while with the the owner who was using a product called StyleSeat, which basically does everything Snip does and more, except, strangely, it can only be used by one single stylist and not a whole salon, at least according to what this salon owner said. This was not ideal for this salon because they have two stylists. I usually don’t try to get salons that are already using software to try to switch from what they’re using to Snip, but in this case I asked them if the benefits of being able to have both stylists log into the same system would outweigh the inconvenience of switching, and they said probably yes. Unfortunately, as I talked to them more, I discovered that they’re pretty dependent on online booking (meaning the ability for clients to book their own appointments without the stylists’ involvement), and that’s not something Snip does yet. So I told them I’d come back when I had that feature.

The rest of the day was fairly uneventful. I visited a total of 12 salons and the responses I got were that they were busy, they were already using something, or they weren’t interested. I don’t view this as a negative thing, though. By the middle of yesterday something clicked and I felt like I finally understood what made people interested or not interested, and I feel now like I know who I should be going after. Here are the reasons I think people who aren’t interested aren’t interested:

  • We’re already using something. Finding salon software is one of those “important but not urgent” things, and if a salon is already using a product they don’t absolutely hate, it’s exceedingly unlikely that they’re going to be motivated to switch to some unfamiliar product. (Salon M from earlier was a rare and surprising exception.)
  • We’re too small, and therefore pen and paper isn’t too painful. I’ve learned that pen and paper seems to be a pain in the ass in proportion to the number of stylists who work at the salon. Each additional stylist is more administrative overhead; it’s one more stylist’s unique handwriting and shorthand in the book, one more stylist crowding over the appointment book, and one more stylist calling the salon to check her schedule. If the salon is just one or two people, they don’t feel that pain so much. It is true that Snip is still useful for those smaller salons (one of my customers works solo) but those smaller salons are less likely to believe they have a problem, and so less inclined to pay for a solution.
  • We’re too big, and our needs are too sophisticated. Salons are surprisingly complicated businesses, and the bigger the salon, the more demands they have out of the software they use, I think mainly when it comes to payroll, inventory and things like that. Snip only has rudimentary inventory capabilities, and no payroll capabilities yet, so big salons are usually not a good fit.
  • All our stylists are independent, so sharing a booking system wouldn’t make sense. This is kind of a variation on “we’re too small.” Some salons are commission, which means the stylists are actual employees. Other salons are chair rental or booth rental, meaning the salon owner is basically just a landlord and all the stylists are self-employed, meaning they handle all their own product inventory, accounting and booking. So a chair rental salon with 6 stylists is often really just 6 separate salons that happen to share a physical space.
  • We’re too old and not willing to use technology. This can be a legitimate reason. I visited a salon two days ago that had stylists in their SEVENTIES. I would feel about as comfortable asking these women to switch to Snip as I would asking them to help me carry my barbells up to the attic.

If those are the reasons salons are not interested, all I have to do is take the opposite of those to get what kind of salons would be interested. So the salon would be:

  • Not using software already.
  • Medium-sized (between 3 and 15 stylists).
  • Be commission as opposed to chair rental.
  • Have younger employees.

Fortunately I think plenty of the 500,000ish salons in the US fit those criteria. Even if OGP doesn’t get me the 2 additional customers I hope and expect that it will, this knowledge is very valuable. I can imagine a section on my website called “How to determine if Snip is right for you” or something, with these things listed.

Operation Get Profitable: Day 2 of 8

Today was the second day of Operation Get Profitable (OGP) where I visit 10 salons a day for 8 days.

On the first day I only visited one salon, but that salon became a paying customer, and since my conversion rate is lower than 10%, one conversion is better than 10 visits. I would still like to get to 80 if possible, though, and today I very slightly made up for yesterday by visiting 11 salons.

Something very unusual happened on my first visit of the day, or I guess I should say there was an unusual combination of qualities that the first visit had: a) the person I talked to when I walked in happened to be the salon owner, b) she happened to be free, c) her salon didn’t already use software, and d) she seemed previously interested in the idea of switching from “the books” to software. These five things aren’t individually rare but it’s really uncommon for them all to be the case at once. So I was stoked about that. I’m meeting with this woman on October 30th to have a deeper discussion. (Which reminds me: I suppose I won’t necessarily know whether OGP was successful before OGP ends.)

The rest of the day was pretty normal. In addition to the appointment I made for 10/30, I also made another appointment with a stylist for tomorrow afternoon. Who knows what, if anything, will come of it.

One thing I forgot and then remembered today, since it’s been so long since I’ve done canvassing, is that it’s a good idea to kind of plan which part of town I’m going to try to hit, and not just plan the part of town but maybe a handful of specific salons there. Today I somehow managed to hit all the most economically destitute areas of town and I saw about as many out-of-business salons as in-business ones. It was stupid and inefficient, so tomorrow I’ll make an effort to be more efficient.

Just for fun, here are the categories in which I’d but the salons I visited as it pertains to strength of prospect:

  • Potentially interested, concrete plans to meet again: 2
  • Potentially interested, but wasn’t able to get specific time scheduled yet: 2
  • Already using software: 3
  • Not interested because some of the stylists are in their MID SEVENTIES: 1
  • Not interested because I mistook a nail salon for a hair salon: 1
  • Existing Snip customer: 1 (yes, I visited an old customer and I’m counting it, F off)
  • Batshit insane: 1 (long story)

So I guess I got 4 good leads out of 11 visits. That doesn’t seem too bad.

Operation Get Profitable: Day 1 of 8

My target for Operation Get Profitable is to visit 80 salons in 8 days, which works out to 10 a day, 4 days a week. (Most salons are closed on Mondays.)

Yesterday I visited just one salon, but it was a good one. Back in July I had a salon owner find Snip online and sign up for a free trial. By total coincidence, her salon in Fraser, Michigan (outside of Detroit) was about 2.5 hours from Grand Rapids where I live. Since July I’ve been visiting her salon and doing the whole sales dance thing and yesterday was supposed to be the day I come in and train her 16 stylists.

Well, after driving two and a half hours to the salon, the salon owner had forgotten I was coming, and most of the 16 stylists were absent. I guess I should have thought to call. We decided we could at least train her on Snip, though, so she set up her old desktop computer. Unfortunately the computer was unworkably slow and had a tiny monitor. I could have spent some time fiddling with this ancient Windows XP machine but by this point I frankly wasn’t sure whether this prospect was totally serious, and if not it certainly didn’t make sense for me to drag myself through the misery (I assume) of cleaning up a slow Windows XP machine. So I offered a deal: if this salon owner were to show me a commitment and start her Snip subscription today, i.e. hand me her credit card so I can put it in the system, then I would go to the store for her, buy her a computer, and then she could reimburse me when I got back. To my surprise, she was good with that, and so that’s exactly what we did. I set the computer up for her and stuck around for a few hours to train the stylists who were there. I didn’t expect it to happen yesterday, but I got a new customer.

Even though I’m now halfway to my goal of getting two new customers, I still plan to shoot for visiting 79 more salons over the next two weeks. If I visit 13 salons today, tomorrow and Friday, I can get 40 for the week, so that’s what I’m going to try to do.