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

[Jen Smith]

Has anyone noticed that the credit crunch has had a dramatic effect on how your business is run or has it evolved into a completely different direction.

Personally my business has completely changed over the last two years, from a full spectrum of beauty services being requested on a daily basis to basically no beauty now other than waxing and the occasional tanning. I am busier than ever as it happens, but I seem to have a fully equipped salon full of equipment and stock that has gone redundant and only my wax pots get a look in these days. I am not complaining however, I love waxing, and I think its good that I can specialise in the one skill (I was never going to be a fabulous nail tech unfortunately that I once hoped and dreamed I would have been, even with all the excellent training I had sigh! :cry. It just seems such a shame when the only action my equipment gets these days is a clean once a week with the duster.

Has any one else noticed a big change to their business or have you continued the same without much noticed changes? I can't decide on whether to just sell the redundant equipment and really focus on my waxing services or continue to dust it and see if its needed again in the future.

:hug:

 

[Martigirl]

I don't think so but I do have treatments that are really popular.

I get a reputation for my customer service and get recommended for this first but waxing, spray tan, hot stone massage and facials are my bread and butter.

 

[Bagpuss]

Cant say i have noticed a difference much, from what i get told by my clients they would rather cut back on the food shopping than stop having their nails done...:lol: a couple of my clients have started going an extra week between rebalances and thats fine...i would rather that then lose them all together....they have said that they are also having their hair done at 10 weeks instead of 8 (roots) and its understandable in these times.

 

[nixnewcastle]

I've set up in the time of the credit crunch so has anyone whos been in business before the credit crunch can you answer what was it like?
Was business booming and everyone getting treatments regularly?

 

[steve@nouvatan]

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:

 

[Jenx]

she said when things are REALLY!! bad , you feel as good as you look in the mirror, :hug:

I like that saying, sums it all up really well x

 

[persianista]

We still offer a full spectrum of treatments, and still continue to add to them. As a company, we abandoned our aggressive growth strategy and concentrated on controlling cash flow. There are huge differences in the industry now compared to even 5 years ago. We used to struggle to recruit stylists, and struggle for space (in a salon on 3 floors!) Now we market hard despite which, we struggle to fill stylist and therapist columns.

 

[nixnewcastle]

I've found there are less and less salons and more and more mobile and home salons starting up as people cant afford the overheads of a salon for the income we are now making and everyone is fighting and scrapping over business by lowering their prices over and over again to compete. It's a sad state of affairs cant wait for the credit crunch to be over and done with and start making some real money and be able to expand in business instead of holding onto every penny incase it's your last.

Im dreading january!!

 

[persianista]

The minute people have some spare money (after the March election I think) they will turn their noses up at the cheapies, and head back to the salons. I saw all this before in the late eighties.
At the moment, people seem to think that cheapest is best. It is a current fashion.
I am still shopping in Waitrose and Marks for food, and have no intention of ever setting foot in Lidl or Netto.
Only a few years ago, expensive designer handbags were in fashion. I'm sure that at some point they will be again. You don't see gucci slashing their prices do you?
There are many types of client;
1. they want it for nothing, sometimes go to a college, will not spend money on their appearence. Use Nivea and the cheapest shampoo in the poundshop.

2 they want a bargain. usually use a mobile just setting out, or a new qualified stylist in a salon. will only spend if there is a discount incentive. Uses whatever products are on special at boots. Whines because she expects top quality and never quite gets it.

3. Invests in a decent haircut in a decent salon. Beauty services are "treats" when bought a gift voucher. Does all the rest at home. Will be in more when economic conditions allow.

4. Regular salon client. Has a regular stylist, therapist and nail tech. Holds prof products in high esteem and buys carefully.

5. Big spender. Tries every treatment available. Buys whatever is new. Has her stylists number on speed dial.

Different stylists etc will appeal to different clients, It will be the mobiles and home salons that will get squeezed next.

 

[sarahhh123]

Different stylists etc will appeal to different clients, It will be the mobiles and home salons that will get squeezed next.

What do you mean by that? I'm mobile and personally offer a high end service (for my area where people don't really spend a lot) - my prices are not cheap and I feel that implying us mobile therapists are a "cheap" service is slightly unfair? (I don't know if you mean it that way or not so sorry if you didn't)

A lot of my clients just like the convenience of me coming to their house! xx

 

[persianista]

Mobiles are percieved to charge less than salons. You use the clients electric, heating and hot water. You don't pay thousands a month for premises. Nor do you employ staff.
I'm not getting at you personally, there are a few private stylists in London charging a fortune. In general mobiles charge less than salons

 

[jo1983]

Mobiles are percieved to charge less than salons. You use the clients electric, heating and hot water. You don't pay thousands a month for premises. Nor do you employ staff.
I'm not getting at you personally, there are a few private stylists in London charging a fortune. In general mobiles charge less than salons

But this doesn't always mean that the treatment is of a lower standard! In fact I am always getting comments that my treatments are of a better standard than treatments that they have had at expensive salons/spas! But ur right I can charge less because I don't have large overheads!

 

[jo1983]

Has anyone noticed that the credit crunch has had a dramatic effect on how your business is run or has it evolved into a completely different direction.

Personally my business has completely changed over the last two years, from a full spectrum of beauty services being requested on a daily basis to basically no beauty now other than waxing and the occasional tanning. I am busier than ever as it happens, but I seem to have a fully equipped salon full of equipment and stock that has gone redundant and only my wax pots get a look in these days. I am not complaining however, I love waxing, and I think its good that I can specialise in the one skill (I was never going to be a fabulous nail tech unfortunately that I once hoped and dreamed I would have been, even with all the excellent training I had sigh! :cry. It just seems such a shame when the only action my equipment gets these days is a clean once a week with the duster.

Has any one else noticed a big change to their business or have you continued the same without much noticed changes? I can't decide on whether to just sell the redundant equipment and really focus on my waxing services or continue to dust it and see if its needed again in the future.

:hug:

Hi Jen

I was wondering if you might be getting only wax treatments because of the name of your business. When I saw your web link I assumed that you done waxing! But then again you did say this change in treatment requests happened just 2 years ago.

Wish u luck xxx

 

[VHunter]

Ummmm no.
Actually, my business has boomed despite it. But I think that's mostly due to the fact I recently (in the last 6mths) acquired several clients that work in the public eye (retailers & waitresses). They pass my cards out like they're candy LOL
And they all love art, so of course, everyone grabs their hands for closer inspection.

HOWEVER, I have started retailing more. I think I'll look into that further. Very little expense required there, very little work; and all kinds of returns. It's just a matter of choosing the right things that WILL sell. That's the tricky part.
So far, my oil and balm are selling like hot-cakes. (one client bought 6 x 150ml balm yesterday to use as Xmas gifts). The returns on these products are MARVELOUS! I make waaaay more per hour making these than I do, doing enhancements.
Next on the menu is a body scrub. There seems to be demand for that.

I would like to add more services, but I'm limited on space unfortunately.
One day... a bigger place. For now... I'll keep my services limited to enhancements.

 

[Bagpuss]

The minute people have some spare money (after the March election I think) they will turn their noses up at the cheapies, and head back to the salons. I saw all this before in the late eighties.
At the moment, people seem to think that cheapest is best. It is a current fashion.
I am still shopping in Waitrose and Marks for food, and have no intention of ever setting foot in Lidl or Netto.
Only a few years ago, expensive designer handbags were in fashion. I'm sure that at some point they will be again. You don't see gucci slashing their prices do you?
There are many types of client;
1. they want it for nothing, sometimes go to a college, will not spend money on their appearence. Use Nivea and the cheapest shampoo in the poundshop.

2 they want a bargain. usually use a mobile just setting out, or a new qualified stylist in a salon. will only spend if there is a discount incentive. Uses whatever products are on special at boots. Whines because she expects top quality and never quite gets it.

3. Invests in a decent haircut in a decent salon. Beauty services are "treats" when bought a gift voucher. Does all the rest at home. Will be in more when economic conditions allow.

4. Regular salon client. Has a regular stylist, therapist and nail tech. Holds prof products in high esteem and buys carefully.

5. Big spender. Tries every treatment available. Buys whatever is new. Has her stylists number on speed dial.

Different stylists etc will appeal to different clients, It will be the mobiles and home salons that will get squeezed next.

I disagree with lots that you have said here but respect your opinion.

I have being doing nails from my home salon since 2004....my clients come to me because they like what i do...not because i am the cheaper alternative...I actually charge more than the salons round here....because i am better than the salons round here.

Not everyone buys cheep because thats all they can afford to do...some people just choose to spend their money differently on different things. Just becouse someone shops in Lidl doesn't mean its because they HAVE too...the same if someone doesn't wear designer jeans....they may just like the New Look jeans....but like to spend alot of money on something else.

Mobile technicians might not have the massive overheads that salons have....but they charge for the convenience of having a service brought to your home...the inconvenience of having to pack up all their stuff over and over and lug it about with them...and petrol. Not all clients find it possible to go to a salon...Mobile technicians cater for those people and if salons feel threatened by that then maybe they should have thought of those types of clients and not just the ones who wouldnt dream of using Nivea

 

[Vetty]

Different stylists etc will appeal to different clients, It will be the mobiles and home salons that will get squeezed next.

Most of my clients want me as a mobile Nail Tech because of my personal and convenient service as well as my kick-a$$ nails! They are often ex-salon clients who are fed up of the often impersonal salon experience.....

I also disagree that mobile therapists/stylist/nail tech's don't have overheads - what about petrol/vehicle maintenance/public liability insurance/advertising/stock costs/ongoing training etc. We're not all doing it on the side as a bit of a hobby, I am full-time mobile doing nails only and it takes planning, organisation and a financial committment to maintain the level of service that I am known for.

 

[sarahhh123]

Most of my clients want me as a mobile Nail Tech because of my personal and convenient service as well as my kick-a$$ nails! They are often ex-salon clients who are fed up of the often impersonal salon experience.....

I also disagree that mobile therapists/stylist/nail tech's don't have overheads - what about petrol/vehicle maintenance/public liability insurance/advertising/stock costs/ongoing training etc. We're not all doing it on the side as a bit of a hobby, I am full-time mobile doing nails only and it takes planning, organisation and a financial committment to maintain the level of service that I am known for.

Exactly. And we don't have the convenience of being in the salon all day, we have to lug around go knows how much stuff, deal with dogs/children/husbands etc etc lol.

And timekeeping is insanely hard when mobile because we need to account for traffic and whatever else could be thrown at us!

This is why I REFUSE to be cheap. Because I spent a lot of time, mone and effort on my insurance, my car, my products and my training and continue to to do so so I can offer people a high-end service and I don't want to cheapen that or be seen as cheap just because I'm mobile.

 

[Bagpuss]

Most of my clients want me as a mobile Nail Tech because of my personal and convenient service as well as my kick-a$$ nails! They are often ex-salon clients who are fed up of the often impersonal salon experience.....

I also disagree that mobile therapists/stylist/nail tech's don't have overheads - what about petrol/vehicle maintenance/public liability insurance/advertising/stock costs/ongoing training etc. We're not all doing it on the side as a bit of a hobby, I am full-time mobile doing nails only and it takes planning, organisation and a financial committment to maintain the level of service that I am known for.

absolutely Vetty....we mobile/home salons also offer the out of hours service that many salons dont...means they miss out on all those clients who work mon - fri till 6pm and don't want to use their weekends having treatments done...seems a win win to me

 

[persianista]

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.

 

[VHunter]

Ummm that would depend on the ratio.

I mean, if you were to calculate how many clients walk through your salon doors a day, how many members of staff you have etc...
VS
a mobile tech (who loses client time with travel & set-up & clean-up) who obviously sees less clients than a salon staffed with multiple techs/hairdressers, there is also car-maintenance and car payments/license/registration (which must be calculated into costs because it is FOR the business so takes the place of the salon itself, if you follow what I mean). I would also consider that a mobile tech would have less retail sales since he/she can't very well carry everything in their vehicle......

I think if you did cost breakdown... (comparing multiple salons and multiple mobile techs to reach an approximation) of what it costs PER client and what revenue is actually earned per client; it would work out roughly in the same ballpark? (UNLESS of course, you rented/owned property in a very high-end of the city which would hardly be average costs).


I would be curious to see if it were all broken down, which way is more cost effective and which is more profitable.