Beyond the Treatment Room: Karen Ellithorne on Building a More Profitable Salon Business

Rising costs, staff retention and increasingly price-conscious clients are putting pressure on salon and spa owners. Karen Ellithorne, owner of Spa and Salon Solutions and founder of Milk Solutions, shares her advice on building a more sustainable beauty business. 
 
Running a successful salon takes more than delivering excellent treatments. With rising operating costs and clients becoming more selective about where they spend their money, salon owners face increasing pressure to remain profitable while delivering value. 
 
According to Karen, one of the industry’s biggest mistakes is competing on price. 
 
“Margins are being squeezed from every side. Rent, stock, electricity and wages keep rising, while clients are under real financial pressure and shopping around on price. Too many salons respond by discounting, and that’s a race nobody wins.” 
 
Clients are also becoming more knowledgeable about skincare, researching ingredients, following influencers and exploring at-home alternatives. This means salons need to offer more than a treatment alone. 
 
“Clients want expertise and visible results, and a reason to choose you over doing it themselves at home,” Karen explains. 
 
For salon owners, demonstrating the value of professional knowledge and personalised treatments is becoming increasingly important. 
 
Finding and keeping the right staff 
 
Staffing remains one of the biggest challenges Karen hears about from salon and spa owners. Recruiting skilled therapists is difficult, while retaining them after investing in their training can be equally frustrating. 
 
“I can’t find good therapists, and when I train them, they leave,” is a concern she hears repeatedly. 
 
“Owners invest time and money developing someone, only to watch them go freelance or rent a chair down the road, sometimes taking clients with them.” 
 
Karen believes training should be viewed as an investment in the business and its people. 
 
“Training is the most powerful retention tool you have. Therapists stay where they feel valued, keep learning and can see a future for themselves.” 
 
Providing opportunities for development and career progression can help salon owners build stronger teams and create an environment where therapists want to grow. 
 
Busy does not always mean profitable 
 
Beyond staffing, cash flow and business management present another challenge. Many salon owners are excellent therapists but have had limited guidance on managing the financial side of their businesses. 
 
“They’re so busy working in the business that there’s no time left to work on it,” Karen says. 
 
Her advice is to start by understanding the numbers behind every treatment. 
 
“Know what every treatment really costs you, including product, time and overheads, and price for profit rather than to match the salon next door. Being busy isn’t the same as being profitable.” 
 
Understanding treatment costs allows owners to make informed pricing decisions instead of relying on competitor prices or discounting to fill appointment books. 
 
Sell results, not discounts 
 
Rather than competing through promotions, Karen encourages salon owners to focus on consultations, treatment planning and demonstrating results. 
 
“Sell results, not discounts. A proper consultation, a clear treatment plan and real before-and-after results will build a loyal client base far faster than a special.” 
 
A personalised approach helps clients understand the value of professional treatments and gives them a clearer reason to return. 
 
Retail also plays an important role in extending that value beyond the salon. 
 
“When a client leaves without the right home-care product, you lose revenue and she gets a weaker result. Retail carries your treatment into her home and keeps her connected to your salon between visits.” 
 
By recommending suitable products as part of a professional treatment plan, salons can support clients’ home-care routines while creating an additional revenue stream. 
 
Build relationships that last 
 
Client retention is another area where small changes can make a difference. Karen encourages salons to build rebooking and follow-up into their everyday processes. 
 
“Look after the clients you already have. Rebooking before they leave and following up afterwards costs a fraction of what it takes to find someone new.” 
 
She also encourages salon owners to make better use of their supplier relationships. 
 
“A good supplier should be a partner, not just someone who delivers stock. Use them for training, protocols and marketing support. That’s exactly what we’re there for.” 
 
Suppliers can offer valuable resources beyond products, helping salons strengthen their knowledge, improve treatment delivery and market their services more effectively. 
 
Building a stronger salon business 
 
For Karen, sustainable growth comes down to understanding profitability, investing in people, demonstrating value and building lasting client relationships. 
 
In an increasingly competitive industry, a full appointment book is only one measure of success. Salon owners also need the right pricing, team, retail strategy and business systems to support long-term growth.