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Home Economic Development

Salon industry embraces shared workspaces

Danielle Brody by Danielle Brody
August 20, 2015
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At some hair salons, the only name that matters to clients is that of their favorite hairdresser ”” like Amanda Kilcran or Amanda Hine.

The two hair stylists said they received up to 90 percent of appointments at a Ridgefield salon, where they worked for about seven years. When they were ready to move on, instead of opening their own salon, they signed on among the first tenants at Salons by JC in Danbury, a suite of private rooms for beauty professionals that opened in March.

For Kilcran and Hine, renting a room for their business, A2, has proved more profitable than working in a traditional salon and has given them the opportunity to be business owners for little investment.

Amanda Kilcran and Amanda Hine in their double suite. Photos by Danielle Brody
Amanda Kilcran and Amanda Hine in their double suite. Photos by Danielle Brody

“It”™s like your own business in a business, so you just feel safe and secure,” Kilcran said. “If we owned our own salon it”™d be so much more stressful.”

Salons by JC is a salon suite franchise based in San Antonio. Derek Correia, an investor with a background in marketing and advertising, owns the Danbury salon. The 37-suite, 6,700-square-foot space in Danbury Square on Backus Avenue cost about $1 million.

He has plans to open 10 of the suites within the next five years in Fairfield, and in Westchester and Rockland counties, Queens and Long Island. A location in Norwalk at the Waypointe development is underway and will open at the end of the summer.

Correia said that in Texas suites now make up a majority of hair salons and he foresees the trend gaining traction in the Northeast. Other salon suite companies in Connecticut include My Salon Suite, which has a location in Fairfield and is opening another in Stamford, and Style Studios in Bethel.

With no background in the hair profession, Correia said he got involved because he saw potential in the business model in an industry that has been growing over the past 10 to 15 years. “In the next chapter of my life I wanted to do something disruptive and meaningful,” he said.

The concept allows beauty professionals with a strong following the opportunity to run their own business at a low cost, he said. “There are plenty of people who dreamed of being on their own, but there wasn”™t this kind of option before,” he said.

At Salons by JC, rent ranges from $270 to $700 per room, depending on size and location in the building, Correia said. Rent includes common areas, Wi-Fi and utilities, and a sink, mirror and furniture in the room. Tenants can decorate the room and use it to sell their own products.

Kilcran and Hine said they invested about $5,000 for the products and decoration. After working in a salon, they enjoyed putting their personal touches on their double suite, like choosing retail products and serving guests cucumber and lemon water. They have had about 140 clients, most from their previous salon or through referrals. Hine said they were profitable in the first month.

She said guests enjoy the privacy of the room and the time they get with their stylist. “We go at our own pace and still make a lot of money, and our clients are happy,” Hine said.

Correia said it depends on prices charged and hours worked, but the difference in salary can be astounding. The two typical salary structures in salons are a commission, where the hairdresser splits revenue with the salon owner, or chair rental, where the hairdresser pays fixed rent to have a chair, yet typically has to use the salon”™s choice of products and pay some overhead for product usage and hair washing.

Stylists can make up to $50,000 more per year at a suite, Correia said. A stylist can go from earning $970 per week under the commission structure to $1,565 per week, according to a company wide analysis chart using Danbury market prices.

Correia said hairdressers work many hours and their earning potential gets capped without owning their own salon, which can be expensive and divert their time from their talent.

With the suites, “You can focus on what you do great in an incredibly uncomplicated business model,” he said. “A lot of the hard stuff is taken care of for you.”

After working as a stylist at a salon in the Danbury Fair mall for about seven years, tenant Chea Quinne wanted a change, but not a move to a similar situation.

She said, “I never wanted to own my own salon because I never wanted to worry about anything but doing hair.” In the suite, “I”™m only worried about what goes on in the room.”

Her investment was about $4,000 or $5,000, she said. She is already profitable seeing four to five clients a day.

The salon has five tenants. Correia said he”™s spending a significant amount on marketing to industry professionals. He plans to have full occupancy within a year and be profitable within six to eight months.

Correia said people are still getting used to the concept. “Even as easy as we”™ve made it, it”™s still a big deal to leave somewhere where you”™re comfortable and established and go into business for yourself.”

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