Management Practices

What will impact the industry in the next 5 years?

Web Editor | July 10, 2011 | 1:36 PM

What will be the most important issue to impact the hair care industry in the next five years?Representing three different segments of the professional salon industry, Brian Graham, Sydney Berry and Cammie Martin give us their perspectives.

What will impact the industry in the next 5 years?Brian Graham

Lithia Springs, Georgia

"A number of legislative issues have the ability to change the direction of several companies all at once, causing a significant shift in our industry. For example, the ‘Card Check' law could make it more cost-effective for unions to go after salon and spa businesses; the EPA's new regulations on volatile organic compounds (VOC) may cause manufacturers to reformulate aerosol products impacting performance and the cost of goods; and the FICA Tax Credit may provide salon and spa owners a dollar-for-dollar tax credit on FICA taxes paid on employee tip income. You can help direct the course of these issues by joining the Professional Beauty Association and visiting its online advocacy center ( to track legislative developments, register to vote and e-mail your elected officials. And, join us for the next Welcome to Our World in Washington D.C."

What will impact the industry in the next 5 years?Sydney Berry

President and Owner
Salon Services and Supplies
Renton, Washington

"There is a need for infrastructure that will allow the salon to have the systems necessary to deliver consistency to clients. Infrastructure will strengthen the salon's ability to sustain growth, visibility and profitability. Secondly, finances are now becoming a hindrance, due to salon tax reporting strategies used in the past. Crediting guidelines are now strictly enforced by lending organizations and banks. Salons need to prove a substantiated income versus a stated income for any type of credit, including credit cards. This will reduce salon availability for added cash flow and alter their growth patterns, including employee costs-the highest salon investment. It will challenge salon expansion availability for their capital expenditures."

What will impact the industry in the next 5 years?Cammie Martin

Moda Salon and Spa
Fort Worth, Texas

"The most pressing issue facing the industry now, and in the near future, is the rise and fall of our economy. In bad economic times, many clients cut back on services they feel are extra expenses, like blow dries or massages. The reality is, these services are not just about outer beauty, but go beyond to promote inner wellness. This is the environment people come to for relaxation. Many people don't realize the industry can help them save on medical expenses by stimulating their wellness and reducing their stress through treatments like massage. We are starting a new program called Moda Economic Stimulus Package that gives weekly tips on how to save in and out of the salon. We pride ourselves on affordable wellness and extraordinary customer service."

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