You Don't Own a Salon. You Own A Business.
In his latest blog, Leon Alexander Ph.D., challenges industry conventional thinking to help owners add more to their bottom lines.
PBA’s Salon/Spa Industry Tracking Survey Reveals Challenges, Shows Encouragement
The Professional Beauty Association recently release the first quarter 2009 results from the PBA Salon/Spa Industry Tracking Survey, a new report that will be published quarterly. Conducted via a panel of 600 salon/spa owners from around the country in consultation with PBA Economist Bruce Grindy and the PBA Salon/Spa Leadership Council. In addition to reporting on industry-wide trends, the survey also provides cross-tabulated results based on annual sales volume.
by Web Editor
July 10, 20112 min to read
The Professional Beauty Association recently released the first quarter 2009 results from the PBA Salon/Spa Industry Tracking Survey, a new report that will be published quarterly. Conducted via a panel of 600 salon/spa owners from around the country in consultation with PBA Economist Bruce Grindy and the PBA Salon/Spa Leadership Council. In addition to reporting on industry-wide trends, the survey also provides cross-tabulated results based on annual sales volume.
The second quarter survey will include the launch of the Salon/Spa Performance Index (SSPI), a quarterly composite index that tracks the health of and outlook for the US salon/spa industry. Much like the national housing market index and the national restaurant performance index, PBA anticipates a sustained level of interest in these economic indicators.
The results of the first quarter 2009 survey are challenging, yet encouraging. Nationally, salon/spa owners reported a decline in both service and retail sales between the first quarters of 2008 and 2009—44 percent of respondents reported a decline in total service sales, while 49 percent reported a decline in retail sales.
However, 54 percent of salon and spa owners are generally optimistic about service sales growth in the months ahead, while only 15 percent expect lower sales. In addition, 62 percent of salon/spa owners expect business conditions to improve in the next six months, while only 7 percent think conditions will be worst than they are now.
Other First Quarter 2009 Salon/Spa Facts:
Salon/spa owners reported an average 0.5 percent increase in back bar costs in the first quarter.
On average, salon/spa owners reported a 2 percent increase in their service prices.
35 percent of salon/spa owners made a capital expenditure for equipment, expansion or remodeling, and 41 percent plan to make one in the next six months.
24 percent of salon/spa owners reported “building and maintaining sales volume” as their number one challenge.
16 percent of salon/spa owners plan to open at least one new establishment in the next six months.
Although salon/spa owners reported relatively steady staffing levels in the first quarter, the reported a cutback in overall employee hours.
The PBA Salon/Spa Industry Tracking Survey is $195 for a yearly subscription for non-members and is provided complimentary to PBA members. PBA also will release its much anticipated Business of Beauty: Maximize Your Profitability, a first-of-its-kind, comprehensive study on the future of beauty retailing during PBA Symposium, July 18-21, in Las Vegas. For more information, please visit probeauty.org.
Subscribe to Our Newsletter
More Salon Management
Are Your Stylists Doing Free Hair on Your Time? Introducing the 'Win-Win' Staff Services Playbook
In her latest blog, Amy Pal helps you develop your own clear guidelines around complimentary free employee services.
Caring for Your Caregivers at the Front Desk
From managing air traffic on busy days to handling frustrated guests' complaints, your front desk team often serves as the salon's emotional shock absorber. From a customer service lesson from the DMV to a list of strategies for caring for your front line, our experts offer ideas for alleviating stress, celebrating wins, and setting goals.
by Stacey Soble
What's Really Happening with Salon Retail and How to Reclaim Your Revenue
According to the KIM Report, top-line salon revenue appears steady or slightly up, but that growth is driven primarily by service price increases. Beneath the surface, retail performance and client visit frequency (appointment drift) are under real pressure. In his latest blog, Alain Audet offers strategies for keeping your salon's retail sales strong.
Trimming Your Tax Bill by Putting Family on the Payroll
Putting your family to work in the salon offers some real tax benefits, but you have you have to play by the rules of the tax code to claim them. Azarvand Tax Law's Leticia Skrabut, Esq., shows you how.
The Art of the WOW Experience
Discover how to create a true “WOW experience” for every client by first building a culture where your team feels engaged, empowered, and inspired. Drawing on Calvin Stovall’s Iconic Framework, this blog explores how salon, spa, and clinic leaders can strengthen culture, elevate customer experience, and build a business that stands out for the long term.
Sponsored by Phorest Salon Software
Why Wellness Belongs on Your Salon's Growth Plan
The wellness industry is growing fast, and salons and barbershops already are an important part of it. In her first blog, Tracy Rado shares where the wellness dollars are heading, and how salons can grow with this movement.
Why Your Revenue Looks Good But Your Business Feels Stressed and What to Do About It
While salon sales are increasing, owners often feel they're working harder for the same or less profit. Leverage Q2 data from The KIM Report, Alain Audet reveals some of the structural changes that are dampening your growth and why your region and your salon size matters.
Why Your Holiday Season is Won in September
Weaknesses in your business are amplified during the Holiday Season. Spark Pro Global's Lucy Randall shows you five things to do now to have the strongest holiday season yet.
Appearance Standards are the New Dress Code
In Kati Whitledge's latest blog, she shares how salons have moved away from dress codes and embraced appearance standards. But by removing strict dress codes, some businesses may have unintentionally lowered their appearance standards. Whitledge helps you explain to your team why an appearance standard is important and how to smoothly implement a new appearance policy.
Working Through the Gray Areas of the Small Business Health Care Tax Credit
The Small Business Health Care Tax Credit is a non-refundable tax credit for for-profit businesses that provides a financial incentive for eligible employers who offer health insurance coverage to their employees. Leticia Skrabut, Esq., walks you through how to claim that credit.
5 Things Every New Stylist Should Learn Early
Developing strong work habits early in one's career supports long-term success in the salon industry. Jesse Linares offers new stylists his top five tips.
The Four Numbers Every Salon Owner Should Know
Most salon owners have no idea what these numbers are. You can hit record sales and still have a profit problem. The difference comes down to four numbers almost nobody was taught to track.
Sponsored by Strata Salon Systems™
Your Salon Can't Survive Without You. That's the Problem.
A five-area audit every owner-dependent salon needs to run. You built something that looks successful. Now find out if it can survive without you.
Sponsored by Strata Salon Systems™
Waiting for the Right Time Is a Decision. Here's What It's Costing You.
Every month you put off fixing the problem, it gets bigger, more expensive, and harder to solve.
Sponsored by Strata Salon Systems™
A Partner in Business and in Life
At Janet St. Paul Studio for Hair and Beauty, Director of Operations Natasha McMillen helps bring her wife Janet St. Paul's vision to life, elevating every system from education to operations.
by Stacey Soble
Back to Business with the Pinstripe Trend
Expand your color service menu with the Pinstripe technique. Brooks and Brooks' Marlon Hawkins walks you through the technique.
by Stacey Soble