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Slow Down in Salon Services Signals a Rough Economy

That is exactly what National Public Radio (NPR) asked NCA as a part of their “California Dreaming” series.  To hear what consumers are saying about the effects of the economy on salon and spa spending habits, click here. To read their blog on the same story, click here To share your thoughts on how consumer perceptions are impacting the bottom line is service and retails sales in salons across the country, click on the “comments” link below. If there is no link below, click here and then click on the “comments” link.   

13 Responses to “Slow Down in Salon Services Signals a Rough Economy”

  1. Steve Reed Says:

    Salon services may fall off a bit in a recession, but research proves women buy more personal care items in a recession.

  2. Andrea Weaver Says:

    The economy maybe rough for some, however, if you focus on high-end products and services, then you’ll attract high-end clients that will rarely be affected by the economy.

  3. Bart Foreman Says:

    There’s no doubt salons and spas are being impacted by this tough economy. When disposable income decreases, consumers are forced tomake decisions that affect their spending habits. You may not lose clients but they will come in less often, only spend on the basic necessities and buy their retail at Wal-Mart to save a buck because that “buck” is more important than it was six years ago.

    The Business of Beauty is all about being proactive and finding creative ways to keep your business strong during these periods. Be creative and find ways that your marketing can improve your business.

  4. Kerry Arndt Says:

    Salons are a wonderful place to work. At our salon we have not had much of a set back. When times are hard for people they still want to look good .Its a great time to treat your clients to a little extra pampering .We are a very important part of the lives of meny people. We are allowed the fabulous opertunity to encourage and listen . One day at a time.

  5. Carolyn Corporon Says:

    Work with your distributor and leverage their resources. They have tools to share with you. You’ve heard it said… “show and tell, and you will sell”. It’s true. Your clients are seeking your professional advise. Be the Beauty Expert that you are!

  6. Becky Says:

    We have a great relationship with our distributor but their not as much help as they were years ago. It used to be a real partnership but we dont see much help these days. Would love to hear what others think. What are you getting besides product?

  7. kimberlee Says:

    Distributors for sure arent what they used to be. But then what is?

  8. Jonathon Goldhill Says:

    I wish I was going to be around for that show!

  9. susanz Says:

    During good times or not so good times,our spa and salon offer value added services. we package together a variety of service for a great price…the result a 5 week waiting list.Give your clients quality and quantity, you can do both.

  10. Michelle Says:

    I am a hairstylist, My question is how commission works within the salon for stylists. Based on 40% commission. Is there a canadian site where I can find out more info?

    Thanks Michelle Little / Hairstylist

  11. Josh Furnish Says:

    Susanz, we also have great success with service packages. Our latest twist is to add home care product mixes to the package. The products are “gift with purchase” to the client -but we’ve built into each package the cost of the product plus 30% to cover basic overhead. We subtract that amount from the package price before paying commission to our stylists. We also give those who purchase our “value pacs” a discount coupon of 15% off their next product purchases. They can use the coupon that same day or anytime within the next 8 weeks. Close to half use the coupon on the day of the service to buy more products. Packages work great for us and are adding to our bottom line.

  12. Cynthia Says:

    Hi Michelle,

    This is my understanding of commission from British Columbia Labor relations. A salon must pay at least minimum wage. Your commission should be greater than our equivalent to what you would make at the required $8.00 an hour over a two week period. Example: You worked 80 hours over two weeks at $8.00 an hour amounting to $640.00. Say the services you did in that two weeks amounted to $3000.00. 40% of $3000.00 is $1200.00. Your commission is also based on what you brought in before GST%. If a cut is $30.00 - GST included - your commission would be based on $28.57. It is also illegal for salon owners to deduct for product usage in BC. I know some salons will pay 50% commission and then deduct a product usage fee - this is illegal. The salon owner must absorb the cost of product from their % or lower the commission being paid. I’ve worked as a manager for 16 years and I’m now self employed so I’ve had some experience in this area. When in doubt contact labor relations.

  13. beth Says:

    I have worked in nail salons for about 12 years. We are dangerously feeling this recession. The salon i work is in a high end community so I find it interesting to hear how salons are doing across the board. We are advertising alot of specials. I hope it helps.

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