Category Archives: Snip

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.

Operation Get Profitable: 80 Salons in 8 Days

In January 2011 I started a SaaS business called Snip Salon Software which, since its inception, has been a slow outward trickle of money. In the time since January 2011 I’ve gotten a few paying customers but I’m not yet covering hosting costs. I’m really close, but not there yet. According to my calculations I need two more customers to be profitable. (Side note: I at one point told my wife I needed one more to get profitable. As I so often am with so many things, I was wrong about that. It’s two.)

Anyway, I have three customers right now, all of whom are on board because I walked unannounced into their salons and said, “Hey, how about you use Snip.” I’ve spent a lot of time on online marketing and that is going fairly well, but 100% of my customers came from the brute force of canvassing and 0% of them came from online. (This in itself is arguably a problem, but according to Paul Graham my situation is normal and okay at this stage.)

So I know that if I just pound the pavement hard enough, I’ll get customers. I stopped doing canvassing in late 2012 because I wanted to shift to the more scalable method of utilizing online marketing, and I’m glad I did, but the road to online marketing success is longer and harder than I thought it would be. Meanwhile I’m bleeding money, knowing that if I were to just go out and do some sales, I could get more customers. The reason I didn’t do that is because I had one of those stupid things that ruins everything: a job. Luckily for me, my job ended on the last Friday of September (long story) and I’m now untethered and free. I’m planning to devote my first two weeks of self-employment to full-time canvassing.

In reality my first week of self-employment was dedicated to helping take care of my sick son (he’s better now), but that’s okay. I’ll start next week. I know from past experience that I can comfortably visit 10 salons per day, and most salons are closed Mondays, so that’s 4*10 = 40 salons per week, or 80 salons in two weeks. I’ve figured based on my past 3.5% conversion rate that I can reasonably expect to get 80*0.035 = 2.8 customers out of this deal. It’s of course not possible to get 0.8 of a customer, so 2.8 customers really means 2 customers. That’s fine, because that’s exactly how many I need to reach profitability.

I’ll be tweeting/blogging about my progress. Wish me luck!