TPTW - Has the credit crunch evolved your business into a different direction?

[Bagpuss]

Thing is Persianista you choose that path....you knew the overheads before you started out and must have included that into your business plan....and be making a profit...otherwise why would it be worth it. But to suggest as you did that mobile/home salons are cheapies and will be the first to get squeezed out is IMO incorrect.

As there are different types of clients there are also different types of technicians...some want the big posh fancy salon...and with that they get the big overheads...others want a small manageable business and with that come less overheads...its all about choices.....but it doesn't make one better than the other.

 

[Ruth Mills]

I've certainly found my business morphing partly due to the recession; I started my company just under 5 years ago to do IT consultancy (primarily short-term contract work); I've since started to diversify by doing freelance web design, and also using my Java design skills to work on some funky web-based software applications too - the idea being that I'd have something to fall back on in case the contract market dried up and I wasn't able to find work for a while.

 

[persianista]

I dont think the people who have replied to my posts even read properly what I wrote, judging by what I'm reading. I have never said that any type of hairdresser was inferior or that mobiles ARE being squeezed.
As for the cost breakdown/profit post above, please don't make me laugh. Hairdressing made me a millionaire.
Looking through this, I can only come to the conclusion that my opinions are not required as I am not a mobile running a one man band out of the boot of my car.

 

[Bagpuss]

I dont think the people who have replied to my posts even read properly what I wrote, judging by what I'm reading. I have never said that any type of hairdresser was inferior or that mobiles ARE being squeezed.
As for the cost breakdown/profit post above, please don't make me laugh. Hairdressing made me a millionaire.
Looking through this, I can only come to the conclusion that my opinions are not required as I am not a mobile running a one man band out of the boot of my car.

Your thoughts and opinions are very welcome...just that some of them or at least the way you write them come across as quite derogatory, like your last comment highlighted in red.

 

[MINKUS]

To be honest we have boomed during the last 12 months spray tanning Has fast return on investment,and is a relatively cheap feel good treatment
my friends have let there season tickets go,The villas have been sold ,along with jet ski s, fishing boats, ect
BUT!! their wives are still immaculate well groomed manicured tanned and still looking like the credit crunch never happened
In one area we supply i have actually seen girls cash benefits at the P.O.
next door and come in for a tan and to get there nails done
and long may it continue !!
My nan told me recently how in the war she painted her legs with gravy browning!!
she said when things are REALLY!! bad , you feel as good as you look in the mirror, :hug:

sorry sorry sorry gotta pick up this quote:irked:

Love the thought that tax i/we all pay goes on lifes little essentials big FAT GRUMBLE !

 

[nixnewcastle]

sorry sorry sorry gotta pick up this quote:irked:

Love the thought that tax i/we all pay goes on lifes little essentials big FAT GRUMBLE !

I know too right. Screw running a business anymore im going on the dole like. I cant afford to have treatments done myself and i work damn hard running a business and working silly hours. Clearly this is where im going wrong! Grumble from me as well

 

[-sophisticutz-]

I think I understand where Persianista is coming from. I don't think at any point she compared the quality of work received regarding mobiles or salons. Only the cost of services and overheads.

Regardless of the quality of work given, you will get A TYPE of client who will go for cheaper rather than quality this is an unfortunate fact.

I have been in the industry for 21 years. Work in the heart of Essex where there is money and where there is none. I have worked in London in high end salons (Selfridges to name one) and in the back of beyond in a sweaty bettys. I have worked in Herfordshire and now in the North East. Generally there has always been mobiles in that area that are cheaper. It always comes down to area.

I have worked mobile too, when my kids were young, and Persianista is correct in saying the overheads do not come close to having a salon-based business. However, the scope of higher earnings is greater being salon based. That is just logistics.

I now live in a town where people are not fussed about quality, they just want cheap, very sad. I even had a lady challenge my £26 pensioners perm: I loose on this, as she thought £5 would be a fairer price.

The industry has changed greatly since I entered it. The recession in the late 80's early 90's saw to that. When I first started. you would have your weekly clients, then it moved to 6 weekly, now probably only 75% of my clients make forward bookings. Some salons in my area is less than 50%, so I think myself lucky!

Colour work is the area I have notice the decline, I have Boots and Superdrug to thank for that! However when the colour goes wrong I can always win them back!

 

[bombini]

I think I understand where Persianista is coming from. I don't think at any point she compared the quality of work received regarding mobiles or salons. Only the cost of services and overheads.
QUOTE]

I agree with this to.

I recently started working from home after renting a room in a hair salon for two years, have worked mobile and before that various spas. The overheads I have now are nothing compared to what I was paying at the salon or even mobile. For starters I haven't got to pay £100 per week rent or petrol and I have saved a fortune by not nipping out for snacks and drinks all the time !

Its difficult to say if the credit crunch has affected my business as around the time it started I decreased my hours at the salon due to me being pregnant and I knew id be going on maternity leave early in the year. I have lost some clients but that was more to do with having 12 weeks off and then having very restricted hours when I returned to work.

I think if Id stayed at the salon then I may have started to struggle. When I first started it was a very busy salon near enough always fully booked and when I left in September they were re-locating next door to a salon half the size and with less than half the staff they had 2 years previously.

 

[izzidoll]

I think I understand where Persianista is coming from. I don't think at any point she compared the quality of work received regarding mobiles or salons. Only the cost of services and overheads.

I agree, I didn't think Persianista said anything about the quality of mobile tech's work. Also she said that the mobile tech's etc will start to feel the squeeze NEXT. which I take to mean that the Salons are getting squeezed now, and this will inevitably filter down to the other aspects of the Industry i.e. mobiles.
As people have less and less money they will possibly book a cheaper treatment from a mobile therapist, which can be done in the comfort of their own home and with more chance (maybe) of an evening appointment. Then however if their circumstances get even worse then they will cancel even that little luxury!

BUT...I thought the question asked in this thread was how have our businesses changed and diversified?
Have many of you had to change your service menu or add more services to attract more clients, or to keep the ones you have!

 

[persianista]

Thankyou for ACTUALLY reading the post! In answer to the thread, we have massively increased our service menu. This year we have introduced;
fake bake spray tans (ditched st tropez)
CACI ultimate (includes microdermabrasion)
Brazillian blow dry
minx
acrylic and gel nail enhancements
Jane Iredale make-up
Pureology hair care.
We have no more plans at the moment to introduce anything else. The cupboard is bare for further investment.

 

[Urban Geek]

I am really not including top ranking mobile nail techs in my generalisation, and I'm sure you all charge more than the salons around you. The thread was asking for opinions on the WHOLE industry, and I speak from the perspective of hairdresser and salon owner in the London area. I too work late and work weekends.
Please believe me when I tell you that your petrol and insurance dont scratch the surface of my overheads of around 6 grand a week.
There is room for everyone in the industry from a new qualified mobile to a top stylist. Different workers appeal to different clients, thats all I was getting at.

Considering your megga overheads, I think a mobile service might be better for you. You must be so stressed.

I think in times of recession, mobile services are more popular, particularly because of the value for money aspect.

I also admire all those mobile nail techs and therapists. They may not have the vast overheads of a salon but they sure do need to be as good at business - there is so much more to juggle and so much more advanced organisation to consider.

I have a salon which I recently opened in October and it is doing great. However, my overheads are still pretty reasonable and the arrangements quite informal hence the low overheads. It is an ideal situation for me at this moment in time.:hug:

 

[persianista]

Lets clear this up, I will NEVER work cheap. I run large salons, with albeit large overheads. ALL of my salons have made a profit through this recession. I still run a HUGE clientele that I have spent 20 years building. I employ others, who I also make a profit from. I am saying that it is tough out there at the moment, our cllients have less to spend. It doesnt mean that I'm gonna sell up and work LONGER hours trying to service 50 clients (hair, not nails) by sclepping from house to house. No offence to the mobiles on here, but never in a billion years would I do that. OH and give up the income I make from retail and employing all those stylists, therapists and techs.
I take enormous pride in my salons and will be sad to say goodbye, in doing so, I will be saying goodbye to the industry. I have no intention of continuing as a hairdresser once I have sold up.

 

[Bagpuss]

and never would I in a billion years want a stream of large salons with a HUGE clientele and HUGE overheads with HUGE stress and a HUGE fall if it all goes wrong....No offence to the HUGE salon owners on here...

I guess we all have different views on what we want and whats important to us....I like a stress free life, simple..easy to manage business and that fits in with my family.....and my little home salon gives me all that and so much more.

I haven't reduced my prices at all.....havent lost any clients either....actually i have gained quite a few in the last 12 months, all word of mouth as i know other home salons/mobiles have and so i guess we must be doing something right.

I wouldn't say that working from a home salon/mobile was working cheap....I would say if its working then its working smart. I am more expensive than any of the salons round here and far busier.

My mother-in-law owns a hair and beauty salon....she told me when i first started out..."keep it small, keep it managable"....thats what i have done and its worked...her salon is having problems with being quiet and have had to let 2 staff go....she tells me all the time how she regrets going from mobile to salon....purely based on the overheads and stress....i know i wouldn't want that.

 

[Urban Geek]

Everyone's idea of the perfect working set up is perhaps different so ...

:hug:Here's wishing everyone - mobile, salon based and salon owners - a very happy, healthy and hopefully prosperous New Year xxx:hug:

 

[persianista]

Thanks urban Geek. One little point I would like to add is that when I sell up and finish, I SELL up for an amount of money. When you build a great mobile round, there is no way of selling it when retirement beckons.
I am well aware that on here, the majoritywish to be mobile. I chose something different, and judging by the amount of threads asking about buying a salon, a lot of others share my ambition. Hairdressing is a bigger industry than mobiles, or salons either.
I did mobile for three months before I bought my first salon (to keep my clientele intact) and I can 100% promise you that I earn't about the same as I pay my middle ranking stylists. So I have experience of both aspects, and I am only prepared to do hair in a salon environment. I am far too old to be leaning over baths and trying to work without hydaulic chairs (I am 4'11).

 

[nixnewcastle]

Lets clear this up, I will NEVER work cheap. I run large salons, with albeit large overheads. ALL of my salons have made a profit through this recession. I still run a HUGE clientele that I have spent 20 years building. I employ others, who I also make a profit from. I am saying that it is tough out there at the moment, our cllients have less to spend. It doesnt mean that I'm gonna sell up and work LONGER hours trying to service 50 clients (hair, not nails) by sclepping from house to house. No offence to the mobiles on here, but never in a billion years would I do that. OH and give up the income I make from retail and employing all those stylists, therapists and techs.
I take enormous pride in my salons and will be sad to say goodbye, in doing so, I will be saying goodbye to the industry. I have no intention of continuing as a hairdresser once I have sold up.

Everytime i come on here I really admire Persianista. She has built up an amazing business that would still be booming if it weren't for the recession. With her expertise and fantastic salons why should she cheapen her services? She shouldn't at all. What makes her so good is her expertise and the salons that she owns.

If I was in her situation I'd be doing the same thing which is going out with a bang by selling up. At least for all of her hard work she can recoup some of the benefits. I know I couldn't do that with the situation im in which is that i just rent a room from a hair dressers and i was mobile before that which although I offer the same services then as what i do now clients expected to get it for cheaper.

I know some amazing mobile beauty therapists who are better and certain treatments than me even but they still get people thinking they are going to be a cheap service because of the fact that they're mobile. It's awful and i know myself cause i have been there as i started off mobile so if anyone is reading this thinking im saying mobile therapists aren't as good as salon therapists im certainly not but unfortunately some clients do think they should be cheap

Clients need educating on you get what you pay for, thats the problem

 

[persianista]

Thanks Nixnewcastle. You have gone some way in clearing up the confusion about the job I do! Yes I am still a hairdresser however my main job is running the salons. Just because I can do hair doesn't mean I want to all the time. I set out on my ventures with the idea that it would be a way of coming out from behind the chair. I still feel proud that I acheived 3 salons with no borrowing or debt. My staff are paid at the top rates for the area and we have heads above water. Until this year I was making more money than I would ever make as a mobile, even working 24 hours a day. As a salon group my managers and myself have worked our socks off to maintain the "no borrowing" position. I personally have lived off savings for the last 6 months to avoid draining the company of much needed cash. So yes it has been hard........in context.
No new Merc for me this year, no Carribean holiday in Feb. Not exactly hardship when you look at how some people are really having it tough.
So if you all want to slate me for not being a mobile, fine. If you want my experience and knowledge of how to grow and run businesses then ask away and I will share my experiences with you, just please stop making stupid suggestions and we will all be happy.

 

[Oaksmoor]

What a shame we tend to lose the original thread, by getting ourselves into a lather over who means what. I have been in this industry for 35 years, have owned and run very large salons and also worked as a mobile/ home based hairdresser and nail tech when it suited me and my lifestyle. I have always made good money and had fabulous job satisfaction. 18 months ago I decided to venture into a different direction with a Spanish diet and nutrition franchise. I too was proud of the fact I had used my lifetimes savings and had no debt, and no borrowing, however 5 months into a 5 year contract and the Master franchisee went into administration due mainly to poor marketing (and translation from spanish to english) and the onset of the recession. Leaving me with a 3 year lease on a premises and no business !!!!!!! I had to act PDQ and rented out a room for beauty and installed a nail station, (hairdresser next door but one and landlord would not allow competetive business!) That was twelve months ago during these past twelve months my business has morphed into something I do not recognise. I know I have created it, mostly out of sheer panic
I have never ever worked so hard and found it so soul destroying, to try to introduce a new beauty/nails salon, in these times.
I do believe that we have now started to turn a corner and business will start to improve, I have marketed hard and concentrated on various aspects of the business all on a shoe string and without borrowing.
I have lived with the support of my fabulous husband and our rapidly depleting savings, and every day I get up, do my face and hair and come to work with a smile on my face however hard. I love my salon and my clients, Staff can be a different matter and make of that what you will coz staffing and peoples expectations are a whole other topic as is the mobile versus non mobile
I think that a recession is sometimes a way of making us sit up and take a hard look at life and business. It makes us evolve, and grow sometimes we win and sometimes you have to wipe your face and move on.

Happy new year to all
Sharon

 

[nixnewcastle]

What a shame we tend to lose the original thread, by getting ourselves into a lather over who means what. I have been in this industry for 35 years, have owned and run very large salons and also worked as a mobile/ home based hairdresser and nail tech when it suited me and my lifestyle. I have always made good money and had fabulous job satisfaction. 18 months ago I decided to venture into a different direction with a Spanish diet and nutrition franchise. I too was proud of the fact I had used my lifetimes savings and had no debt, and no borrowing, however 5 months into a 5 year contract and the Master franchisee went into administration due mainly to poor marketing (and translation from spanish to english) and the onset of the recession. Leaving me with a 3 year lease on a premises and no business !!!!!!! I had to act PDQ and rented out a room for beauty and installed a nail station, (hairdresser next door but one and landlord would not allow competetive business!) That was twelve months ago during these past twelve months my business has morphed into something I do not recognise. I know I have created it, mostly out of sheer panic
I have never ever worked so hard and found it so soul destroying, to try to introduce a new beauty/nails salon, in these times.
I do believe that we have now started to turn a corner and business will start to improve, I have marketed hard and concentrated on various aspects of the business all on a shoe string and without borrowing.
I have lived with the support of my fabulous husband and our rapidly depleting savings, and every day I get up, do my face and hair and come to work with a smile on my face however hard. I love my salon and my clients, Staff can be a different matter and make of that what you will coz staffing and peoples expectations are a whole other topic as is the mobile versus non mobile
I think that a recession is sometimes a way of making us sit up and take a hard look at life and business. It makes us evolve, and grow sometimes we win and sometimes you have to wipe your face and move on.

Happy new year to all
Sharon

Excellent reply sharon. Im just really really hoping we come out of this recession soon but the only place the housing prices haven't gone up is the north east which means the north east is still very much in a recession. My business has evolved from being mobile to renting a room in a salon and just paying a percentage of what i earn so i cant go bust. Would love to buy a salon and try and expand the business but building up a business at the moment im finding is very slow indeed and unfortunately i do have debt to pay off which im struggling to do at the moment

 

[persianista]

At the moment, I wouldn't even consider expanding. Oaksmoor's story is inspiring, but also a salutory lesson about commercial leases, and the responsibilities that come with them. It is fairly easy and inexpensive to set up a salon (especially with cheap rents and incentives at the moment) but you are responsible for a commercial lease for it's lifetime, even if you want to give up and close down.
I do get concerned when people on here try and open a salon with a couple of thousand quid saved up. It really can be a recipe for disaster, and long term financial problems.