How is the recession affecting your business????

[kezza*]

Some reports say we are headin out of a recession, that things are picking up, so why is there still so many shops closing???? obviously there is still problems.

I'm shocked to find that Faith,,, shoe shop is in adminstation,,, have they out priced themselves?????

How is everyone finding things???

Has anyone had to close???

Or doing mobile, working from home etc,,, had to give up????

Can you still charge high end prices?????

How much do you charge for your time??????

What treatments do you find clients are cutting back on??????

Do you think that people are being a bit to brave right now to set up on there own?????

Thanks just wondered how everyone else is getting on and we never hear of anyone having to close on salon geek,,,, its alot of people asking for advice on setting up themselves.


Kerry

 

[Ruth Mills]

No way, that's scary about Faith! Faith Shoes - Buy Womens Shoes, Boots, Bridal and Bags online UK

I'm a big fan of their shoes too... haven't bought any for a while though... I guess many of their customers have moved to cheaper alternatives on account of the recession...

 

[kimi1101]

my friend is a manager in Faith. I have no idea what happened, neither does she, but they don't own any of their stock, for some reason they paid for the stock once it had been sold? So now the stock they have they are not allowed to reduce, as the suppliers want full price for it...the administrators said that by last Friday bids for the company were to be in but no one has heard anything yet. They are not allowed to do overtime but basically the shop she works in is open 70ish hours a week and there are only people contracted for 57 hours, so she is having to work the extra, unpaid. She has no idea what is going on, but they may still be bought out.

I opened in August and since then have employed a beauty therapist and another hairdresser, and a chair renter in with us too. I genuinely think if you are supplying something that is not there already, you are on to a winner. I know I've been lucky....just can't wait to see how busy I'll be when the recession has finally cleared!!!!

 

[Ruth Mills]

I do think that one thing is for certain in general though... the people who offer exceptional quality and service for reasonable pricing will be very busy...

 

[kimi1101]

there was a thread on here a few days back about offering a bit extra to your clients and there was some great suggestions on there! Ruth I know what you mean!! We all need to step up our game to keep up with the rest and do better than the rest!!!!

 

[jes]

I hope I'm wrong, but I fear the effect of the recession, on our businesses, is going to pale into insignificance once we, all, have to start paying back the massive dept this county is now in.... we're not out of the woods yet!

 

[persianista]

The end of recession is usually when you see the worst effects. Yes it is super tough out there still. 2 salons near me have gone pop in the last 2 weeks. Not good.

I still say that those of us that remain at the end are the supersalons of tomorrow.

 

[Verve Designs]

The end of recession is usually when you see the worst effects. Yes it is super tough out there still. 2 salons near me have gone pop in the last 2 weeks. Not good.

I still say that those of us that remain at the end are the supersalons of tomorrow.

I agree- I see it as more of an opportunity. If a business survives this period, stays out of debt- creates good business practices and builds a good, loyal and satisfied client base- just imagine the returns when the economy does turn the corner in a few years time.

To my mind the recession - to be really harsh- is weeding out bad businesses and bad business people. Faith, like most of the businesses that are going bust, got into too much debt, which is just plain bad management- and they were the same managers who were in charge of Dolcis and Envy, who I think also went bust.

 

[Smartieswife]

I agree- I see it as more of an opportunity. If a business survives this period, stays out of debt- creates good business practices and builds a good, loyal and satisfied client base- just imagine the returns when the economy does turn the corner in a few years time.

To my mind the recession - to be really harsh- is weeding out bad businesses and bad business people. Faith, like most of the businesses that are going bust, got into too much debt, which is just plain bad management- and they were the same managers who were in charge of Dolcis and Envy, who I think also went bust.

Well said!

 

[Urban Geek]

I opened my salon in October and now have a full book with even run a cancellation list on some days. (I am off at the moment recovering from a wee op.):sad:

Two salons a stones throw from me have closed since October which is very sad. People are certainly more careful with their money and will only part with it for good value, great service and quality. Those that offer a 2nd rate service will struggle even more to survive.

Recession or not, I do my utmost for my clients. Clients also come to me for a feel good factor and sure don't want to listen to doom and gloom. I like them to leave the salon feeling positive, relaxed and happy with whatever service they have had.

Even when there is no recession, businesses still go under. Therefore recession isn't a reason not to give things a go.

Stay strong, stay on top, give your best and clients will keep coming back!

 

[kdmb212]

I agree- I see it as more of an opportunity. If a business survives this period, stays out of debt- creates good business practices and builds a good, loyal and satisfied client base- just imagine the returns when the economy does turn the corner in a few years time.

To my mind the recession - to be really harsh- is weeding out bad businesses and bad business people. Faith, like most of the businesses that are going bust, got into too much debt, which is just plain bad management- and they were the same managers who were in charge of Dolcis and Envy, who I think also went bust.

I totally agree with that. Solid financial management and customer service are the core of any business. KISS: Keep it simple stupid Keep costs down and profits up, provide the best value for money and you're golden.

 

[Lynne Baker]

My year end results show a 126.66% uplift on last year so I'm happy with that. I'm not at all complacent about it; therein lies the downfall! I work very hard to market the business, to make sure my clients are super happy, and to keep my costs to a minimum. This last point is very important: turnover is vanity, profit is sanity!

 

[geeg]

I hope I'm wrong, but I fear the effect of the recession, on our businesses, is going to pale into insignificance once we, all, have to start paying back the massive dept this county is now in.... we're not out of the woods yet!

Be thankful if you are a part of the beauty sector ... it has grown right through this recession as it did through the last and the one before that. For those who are not surviving (more than that, not growing) then look to do something else because something you're doing is not right.

 

[persianista]

If it makes everyone feel better, I have stood still across my salon group last year. Our clients are hard up and fearful, money is tight, and statistics show that people are visiting salons less often.

To even stand still in this climate is an acheivement, to grow is fantastic.

It is rare that I disagree with Geeg, but in this case I do. Please don't everyone get disheartened or feel a failure because they have not doubled the size of their company in a year, in the face of a vicious recession.

My company has never grown by 126% in a year, yet in 11 years it is still running, surviving, and having a pause before we go full steam ahead for growth again.

 

[skankinchar]

I can't say that the reccession has made too much of a difference, clients are still coming in, they are just cutting back a little bit on their treatments, such as leaving their colour 8 weeks instead of 6. Of course it's been harder for some people than others, but I just try and keep smiling and try not to worry too much.

 

[geeg]

If it makes everyone feel better, I have stood still across my salon group last year. Our clients are hard up and fearful, money is tight, and statistics show that people are visiting salons less often.

To even stand still in this climate is an acheivement, to grow is fantastic.

It is rare that I disagree with Geeg, but in this case I do. Please don't everyone get disheartened or feel a failure because they have not doubled the size of their company in a year, in the face of a vicious recession.

My company has never grown by 126% in a year, yet in 11 years it is still running, surviving, and having a pause before we go full steam ahead for growth again.

well I am not talking about hair, but beauty including nails and it IS growing and always has done during a recession. So whether in agreement with me personally or not , I am going by the facts which are there for all to see (there have been enough articles about how beauty services are surviving and growing during the recession).

I've also had a business during two of the worst recessions and they have grown throughout and we have grown again this year. So I'm not talking through my 'hat'. Hair may be a different story. My hair stylist tells me that her business has not shrunk this year but that her clients are pushing everything to the limit .. colour, cutting ... everyone is waiting that extra week or two before booking their appointments- even to stand still is an achievement for many.

 

[persianista]

I have beauty salons too Geeg. Only thing I am not into is nails.

If there are lots of salons growing so well, can I ask why there are no huge salons, and very few independantly owned chains?
Considering Spain has 20% unemployment, it is astonishing that women are having their nails done more than during the boom times.

I think constant year on year growth is unrealistic as an expectation whatever business you are in. All companies experience flat periods and contractions.

 

[geeg]

I have beauty salons too Geeg. Only thing I am not into is nails.

If there are lots of salons growing so well, can I ask why there are no huge salons, and very few independantly owned chains?
Considering Spain has 20% unemployment, it is astonishing that women are having their nails done more than during the boom times.

I think constant year on year growth is unrealistic as an expectation whatever business you are in. All companies experience flat periods and contractions.

Of course they do .. and I'm not saying everyone is growing by leaps and bounds, just that as a whole it is growing.

There is allot of money in Spain despite the unemployment which is mostly in the building trade, and Spanish women like their nails and beauty and surgery and clothes etc. more than allot.

flat periods are not a sign of failure ... but I am talking about the beauty sector as a whole . and it has grown during this recession (not for everyone .. separates the wheat from the chaff, I say and hopefully we will see the back of many of the cowboys and kitchen mafia when it is all over) that is a fact.

 

[totalbirdbrain]

Of course they do .. and I'm not saying everyone is growing by leaps and bounds, just that as a whole it is growing.

There is allot of money in Spain despite the unemployment which is mostly in the building trade, and Spanish women like their nails and beauty and surgery and clothes etc. more than allot.

flat periods are not a sign of failure ... but I am talking about the beauty sector as a whole . and it has grown during this recession (not for everyone .. separates the wheat from the chaff, I say and hopefully we will see the back of many of the cowboys and kitchen mafia when it is all over) that is a fact.

We are the only purely beauty salon in our area, I would not say we have grown, but like Persianista said previously, held our own. We provide an excellent service (clients say so) but we (our area) seem to have felt the effect of the recession a bit later than others. I dont like to say that I am happy to 'stand still' but its better than going backwards. We are no 'cowboys' and I am proud that we are hanging on.

 

[Verve Designs]

One of the reasons this industry is relatively unscathed (and something that ought to encourage you) is partly due to a concept called the "low cost luxury".

This is, sometimes, a double edged bonus- in that people, in times of ecomonic stress, arent going to go out and spend 20K on a new car to feel better about themselves, but they are likely to go out and spend £20.00 on a beauty treatment to have a tangible affect on their happiness.

So, it's often worth pitching your marketing message/ advertisting toward that aim....