mr_erp
5 posts since
Jan 21, 2009
5.
Re: What are you paying your hair stylists? Apr 4, 2009 4:40 PM

in response to:
DomainDiva
Your points are interesting - utopian, but interesting. Most customers naturally see the business through the eyes of the stylist and don't really understand the business at all from an owners perspective. After all, the average customer sits in the chair for 1 - 2 hours hearing about the world according to their stylist, unaware that the seat they are sitting in, the lights above them, the heat, the airconditioning, the coffee, the beautiful decor, the receptionist, everything around them, is provided at the owners expense.
The fact is that revenues continue to drop due to the economy - ESPECIALLY in the Detroit market. I track my numbers daily, sometimes even hourly so yes, I have been addressing the decline in revenues. Unfortunately, my cost continue to rise including utilities, rent, supplies, products, insurance, wages, advertising, etc. The cost of doing business continues to rise regardless of revenues. Perhaps one option would be to raise prices to increase revenues but alas, price elasticity of demand is extremely inelastic and a large number of customers WILL go elsewhere to save a buck - despite their loyalty to the stylist. In addition, our stylists refuse to charge the higher prices fearing they will lose clientele. Another option might be to hold a promotional event similar to your suggested "hair fair" that would benefit a local charity or include special discounts or both. Again, the stylist will gladly do this IF it does not come out of their pocket AND it is done during their normal work schedule, i.e., Sunday is completely out of the question for 95 percent of our people.
In general, stylists are very independent minded people who for the most part look out for themselves above all else. Their number one goal in life is to maximize their profits. And as you so succinctly pointed out, they know that they can go down the street to another salon any time they please if the owner does not continually placate or treat them in a manor that is befitting them. It is extremely rare to find a stylist who understands the business and/or cares enough about the shop they work in, and is willing to make the kind of sacrifices that may result in a short term loss for a long term gain. I know this because I've got a couple of these exceptional people working for me and they continually go out of their way to do what's best for both them AND for the salon. In most cases, these are the folks that will become owners themselves one day. They just get it. So hopefully the next time little Suzzie tells you how terrible the place is and/or how horrible the owner is, just before she packs up her scissors and moves again, you might remember that there's her world and then there's the business world.