Business Featured

Surviving the Cost of Living Crisis | Part 1

January 09, 2023

As we sail into the unchartered financial waters of 2023, we talk to a group of salon owners from up and down the country and get their take on surviving the cost of living crisis.

Marcello Moccia

Room 97 Creative
“Some of us have been here before and have had to cut back on our outgoings, but in recent years everything has been very stable; everything has been at our fingertips when we want it and we’ve paid whatever has been asked. So we all need to change our mindset and look at things differently. Now, the most important thing we can all do is increase our earnings and decrease our spend. For the first time in a long time, we are being forced to look at every penny we spend, who we do business with and set a budget and stick to it. Most importantly, make sure your team are OK and motivated. Work closely with your salon partners –product houses such as L’Oréal Professionnel can offer free education for your team so they can be inspired to upskill and bring new services into the salon. It’s a daunting time but it can also be a time for new opportunities.”

Alan Simpson

Contemporary Salons for L’Oréal Professionnel
“Recently, there has been too much focus on cost cutting and not enough focus on growing your business. Generally client appointments are going longer: before Covid our average visit was nine weeks, it’s now 13.6 weeks, so there’s been a massive change in clients’ habits. As salons owners, we need to find ways to improve our frequency. Firstly, change your service menu. We have made our teams more aware of the service menus and worked with clients to get them back in sooner with colour appointments. Then look at your opening hours; in the wake of the energy costs crisis, most of our Alan Simpson salons are closing on Mondays. This saves us 16% on electricity and staffing costs and our trade has not been affected by doing so. Finally, make sure you have a growth plan. Review all your expenditure, plan and do a cash forecast on your expenses. If you can’t do this ask your accountant; you need to have a clear understanding of your expenses.

Susan Hall

Reds Hair and Beauty for L’Oréal Professionnel
“To survive the coming months, you need good managers on your side who understand your business needs and why we need to tighten up this winter. They need to know how hard it is going to get. There are various things we can all do, from managing your wage bill and changing our opening hours, to keeping costs down and charging for refreshments. Look at putting your prices up, taking into account the living wage and rising utility bills. Try to create a hub in the salon, offering different services – we offer a podiatry clinic, micro blading, aesthetics and Morphious8. All these treatments are bringing in a different clientele who spend money with us. It’s important to keep standards high and always keep the salon warm!

Robert Kirby

“One of the first things we are looking at is wastage of colour and bleach, so much goes in the bin as the team have been mixing too much. The backwash area can literally wash money down the sink, as look at how much shampoo and conditioner is being used. Be aware of clients’ cost of living expenses; we’ve introduced a half head of colour so clients can squeeze their services out for longer without their hair looking a mess. We also offer a Colour Bomb Conditioner so they can freshen up their colour at home instead of coming to the salon. Clients will be really appreciative of the little things we can do for them, so keep this in mind and be realistic about their budgets.”

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