Even in the worst of economic times, certain industries thrive. Especially the ones that offer products or services some folks just can”™t ”“ or won”™t ”“ live without.
The hair care industry is one of them.
Sal Viola, owner of Soho Salon in Monroe, spent years in the retail end of hair products before buying the salon in 2002.
And he attributes its success to “a strong design team and their personal commitment.”
Together with Jodie Kyvik, who has 25 years of experience as a stylist, he used his retail savvy and her knowledge of the industry to re-position the salon. The result has been a success for Viola, who bought a second salon in Chester”™s main shopping mall a year later and now has two more salons, one in Montgomery and another in Fort Montgomery, which he is grooming to fit his business model.
“We wanted a name that would appeal to urban culture,” said Kyvik, “and that”™s how Soho Salon was born. Even though we have four shops, we are not a franchise but think of ourselves as a family and work as a team. We all get together for meetings and classes as much as possible, and we are constantly making sure our stylists are cutting edge, no pun intended. Sal”™s background has been at the retail end of the trade, while I”™ve been on the actual front line. When it comes to any ”˜gray”™ area ”“ again, no pun intended ”“ we sit down and come up with a solution that will benefit our customers and keep our salons at the top of the game.”
Viola said he has cut back on some retail products, which are a mainstay for any salon and represent a significant portion of revenue. “People are making an investment in their hair,” he said. “Redken has been one of our anchor products, but we”™ve also got an exclusive line, Ecru, only sold in our salons. I have cut back on other products because, like everyone else, we are watching our overhead.”
Stylists are commissioned, but there are still costs for rent, insurance, heat and equipment. “And you want to maintain the look of your shop, keep it appealing and attractive,” added Kyvik.
Viola has also had to cut back hours for the apprentices. “It”™s unfortunate, but like every other business, we have to make cuts where possible. We are not going to shortchange our clients when it comes to the quality of service, but we are definitely watching where and how we spend our money.”
Viola said some customers have stretched out their appointments. Rather than coming in every four or five weeks, some are trying to get an extra week out of their cuts or coloring. “But when it comes to hair care, people have not stopped keeping up their looks.”
According to MarketResearch.com, more than 8,000 independently owned salons (5,000 of those are barber shops) across the U.S. bring in an annual $18 billion in revenue. Location, location, location is an all-important factor, as well as top-notch staff.
Although considered one of the most labor-intensive industries, the average hairdresser”™s salary is $35,000 a year.
Hair care products, according to MarketResearch.com, are the real revenue producers for the independent salon owner. Most carry boutique brands, although the parent company is likely to be Proctor & Gamble, Unilever or L”™Oreal, the three top hair-styling products producers in the U.S.
“For most people, their hair is an investment, and they will spend money to keep it looking as great as ”¦ when they walk out of the salon,” Kyvik said.
