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Automatic Ka-ching

Published: July 27, 2010

SINCE MANY SALONS typically run thin on profit margins, most owners don’t believe its possible to save for retirement. Dean Parks, of Salon GC in Vernon Hills, Illinois, was one of those owners. “After meeting payroll, paying rent, supplies, utilities, insurance and other charges, it was hard to imagine there would be much money left for savings,” he says. “Our salon was busy; however, I wasn’t achieving my personal and professional savings goals as quickly as I wanted to.”

GC’s payment processor, Integrity Payment Systems, showed Parks how savings could be set aside with no significant operational changes. They offered the salon a free service called Auto-Save that allowed him to build a strong retirement account.

“We signed with Integrity in May 2006. In April 2008, we started the Auto-Save program, putting 2 percent directly into a high-interest savings account,” he explains. “We then increased our saving rate to 4 percent in June, because we weren’t missing the money. In July 2009, we raised it to 7 percent and I’m actually thinking of raising it now to 10 percent! This program is so great because it provided us the tool … a way to set aside money for promotions, vacations, and even to fund our IRAs.”

The program automatically deducts a pre-determined amount from each credit card transaction and deposits the amounts into a high-interest, no-minimum savings account. The amounts are small, but the secret to making it work is consistency on every transaction. The Auto-Save program has been so successful for salon owners that it is endorsed by Redken 5th Ave NYC.

In reaching out to salons, Integrity has combined this savings program with low credit card processing costs, collectively saving their salon clients about $3 million in credit card transaction fees. Credit card fees are typically a salon’s fifth largest operation cost.

For any owner interested in learning more about the Auto-Save program, Integrity Payment Systems will analyze the salon’s cost structure and provide a comparison to the average for salons their size at no cost and no obligation. For a free analysis or more details about Auto Save, contact Integrity at info@IPSsalon.com or call 866-988-4882.

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