I finally got a hair cut this past weekend. It came out to be around $55 with tip, is very reasonable. My stylist, “Holly”, gave me some nice long layers and a saucy flip (though unfortunately only achievable through a professional blow-dry).
She was really chatty and friendly, and somehow the conversation turned to finances and the recession. I asked her about the business model of hair salons – apparently, some stylists work on commissions and receive clients through the salon, others are solely renters who pay the salon a weekly rent and recruit their own clients.
Holly said that she used to work as an assistant stylist in a very upscale salon in a very upscale part of town – where a week’s rent for a salon space is $800! Of course, the cut and treatments at that salon can range from $300 and upwards. On the good days, Holly said, her boss (the main stylist) would net $1,200. A DAY.
Of course, when the recession hit, bookings fell. They noticed that the clients are spacing out their appointments more and more. Instead of coming back for a trim or a new ‘do every 2 months, clients might be waiting until the 4th or 5th month mark. I also imagine that many people would bypass the more expensive treatments like hair color and perms and settle for a simple cut and blow-dry. All of this cut into their profits.
That’s why Holly decided to move to her current salon, which operates on a lower price point (think $50 per cut instead of $400+) and is located in a less swanky area. Her per-cut take is much lower, but the increased sales volume makes up for it.
Another real-life example of market pricing. Love it!
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{ 6 comments… read them below or add one }
Gee, I used to pay $12 for my haircut to a hairdresser working from her home. She has moved away now and I still only pay $20 to a salon! I couldn’t imagine paying $50, let alone $400!!
I’m in my late 20s and I’ve been seeing the same stylist since I was 6 (she’s a family friend). She owns her own salon and I just saw her last month. She says business had slowed down dramatically and she recently had to let go of the only other stylist that worked there because the woman was starting to take clients at her own house. Her salon is certainly not swanky, but she charges reasonable prices and I’ve always liked how my hair looks after I go to her.
I always wonder why I can’t blow dry as well as they do. I mean, it doesn’t seem that complicated.
Glad you found someone at a good price point. I haven’t gone to the same place twice since I got here, I’ve been shopping. My last cut finally impressed me enough for a repeat vist (probably), but it was still $95.
PS – email me the salon? I want to add it to my list of places to try out.
That’s interesting — the business model of salons. I always wondered
I definitely think that the $30 – $50 mark for a haircut before tip and tax is what is the best for me and my hair.
if I go any cheaper (and I have in the past!!! I went as low as $10 for some cuts), it becomes a mess. It doesn’t grow out nicely, it looks shabby, and I can’t go 6 months with a cheap haircut without having to cut it again
I’d rather pay more, and get professionally cut layers and let it go for 6 months after that, and have it still look awesome
I think because LA is in the business of beauty the price of any beauty related service is seriously inflated. A few hundred dollars for a cut and color is the norm here, isn’t that weird. It’s a strange world when hairdressers make $1200 a day!
Another reason why my BF and I want to move to LA.
He’s a hairstylist. We currently live in the Midwest and he receives 50 percent commission, plus all tips. He also gets a small percentage of products he sells. Another plus of his current salon is that he acutally has a 401K and now has a few paid vacation days. Generally stylists do not get paid when take vacation days, though. That’s hard.
I know he could make a LOT more money in LA, and he’s from there originally and we love it there, so I hope it happens.