A new year brings new beginnings and there was a tiny ray of hope among American salons in the hope that a new vaccine would be delivered. What remains to be determined, however, is the lasting impact Covid-19 will have on the salon industry, especially in rural areas.
We are currently in a recession worse than 2008 when only 2.9% of salons in the US closed. As our economy delves deeper into this recession, the industry is expected to see salon closure rates around 20%, according to Kline Research. Against this background, we still have to ask what this means for the fate of our industry.
“Although we can’t really know what’s going to happen, we’re starting to see a big change in the way the salons work,” he says Kim Badiuk, Operations Manager of SalonScale. “We’re starting to see more suites for independent business owners and a greater drop in commission salons,” she says.
Due to the reduced capacity in salons, stylists are looking for other means of generating a stable income. This is one of the factors that has contributed to more independent ownership and the allocation of declining commission salons over the past year. In addition, customers are impacting this trend as they find it safer to be with suite tenants than with open plan concepts due to the lower risk of exposure. With the independent movement growing significantly, the proportion of suites is expected to increase 4% versus commissions by the end of 2021. However, Badiuk advises caution if it becomes sole property.
“What most stylists don’t realize is all of the costs you incur as a salon entrepreneur. Aside from the rental, hair color can be your biggest expense. Not knowing how to manage and control them can reduce the bottom line in your business. With a largely independent marketplace, we’re also losing the ability to nurture the future generation of stylists and nurture the community at a time when we need to stand together the most, ”she says.
SalonScale is hair color management software and has quickly become a leading provider of backbar business solutions. Using your mobile device and a bluetooth scale, SalonScale weighs the cost of your bowl while you mix in real time to give you an accurate idea of what your color appointments are costing the salon.
“Our industry is one of the few that doesn’t bill its time and product separately. With the ability to know what your paint cost is, stylists and owners can now bill their customers for the product they use, cover their expenses and make more profit in their business, ”says Badiuk.
Since March 2020, many stylists and salon owners have made the switch to incorporate SalonScale into their business amid locks and forced closings.
“I worked fewer hours and at the end of each month still benefited more from it,” says Alanna Karst, a suite tenant in the rural Midwest. “As a business owner, it just makes sense. It’s the only tool that helps me stay accountable and be sustainable over the long term, she says.
SalonScale users have reported a monthly profit increase in their salons of between $ 1,500 and $ 4,500 within months of integrating the platform into their business. The company is currently offering salons the opportunity to get started without any payment obligations in the first three months.
“Ultimately, we are in this business to help the salon industry be sustainable and we will do everything we can to show our support,” says Badiuk.
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