Buying Nail Salon: How to manage cash as an abesentee owner?
August 27, 2024
by a searcher from The University of North Carolina at Chapel Hill - Kenan-Flagler Business School in Miami, FL, USA
Obviously theres a good deal of cash payments in this business. I'm looking to hire a manager to handle day-to-day transactions.
Anyone have experience with this/tips for how ensure you see all of the revenue paid in cash?
I'm concerned about all of the cash payments being logged as an absentee owner...
Several ideas:
- Small % discount for credit card payments (issue is you're getting hit twice on CC Fees)
- Incentivize manager based on cash revenue (if we have historically done $100,000k of cash revenue annually, you get $5,000 bonus if we hit or outperform)
- Cash Audits (Not sure how this would work in practice)
- Cameras with AI capabilities to monitor (Does this exist)
from Emory University in Tucson, AZ, USA
1) Upgrade your POS system to encourage card payments, with the credit card terminal prominently placed - palovian tapping, no different from grocery or gas or whatever. Every customer has their phone number entered for "line management" as well as clienteling (see GreatClips POS usage). Integrate the convenience of online booking with reservation payment, perhaps coupled with a rewards programs to further incentivize (plus it's a win for customers and their busy schedules, your team for keep busy with appointments, etc.).
2) Basic retail reporting by tracking sales, average ticket, weather, payment method, etc. by maintaining a year-over-year log of transactions. You might want to include total tips reporting too. Analyze this data regularly to identify discrepancies and optimize operations.
3) Improve upsell opportunities - add-ons, product, etc. - that drives the ticket higher and likely credit card payment.
4) If volume warrants, evaluate POS drawer counting software, smart safes and cash-in-transit services. Tellermate for hardware. Loomis, Brinks, and others likely offer smart safes.
5) Consider promotions leveraging gift cards with the additional benefit of driving repeat and decreasing cash handling. Think: buy X number of haircuts for Z. Or buy a gift card of X services and receive this premium (high value perception, but low cost of good) - it's all stored on a gift card.
6) Cameras professionally installed can help deter but only if the team feels the presence of their monitoring.
7) Reasonable and achievable performance goals for manager and team.
8) Incentives around "cash in the drawer" feel like a way to draw attention to the ability to shrink cash. Discounts to pay by credit card are inverse of what people are used to so it may confuse customers.
from University of Missouri in Denver, CO, USA