LIST OF TRADE SECTORS

Contents

Executive summary

Sector overview

Nature of the trade

Start up

Legislation and regulation

Performance indicators

Investigation matters

Accountancy matters

VAT position

Statistics

Further information

Nature of the trade

Customers, terms offered

A salon's clientele often reflects the nature of the outlet and the pricing policy. A hairdresser might target a particular type of client by specialising in, for example, low cost barbering or exclusive ladies' coiffure. Many outlets now also offer children's hairdressing, which is considered by most to be a growing market. Some salons also provide a package of services to self-employed stylists who rent a chair in the outlet.

Many hairdressers acknowledge the fact that they provide more than just a hair styling service for many of their clients, who may regard salon visits as an occasional indulgence or luxury. Accordingly, many salons offer the following;

  • drinks (for example tea, coffee or even Champagne) and refreshments
  • current editions of newspapers, magazines and other reading material
  • appropriate background music (for which a licence from the Performing Right Society is normally required)
  • pleasant surroundings, relaxed ambience and friendly rapport

Customers may also be offered a number of special deals and loyalty incentives (particularly if local competition is strong). Many hairdressers take great pride in their work and reputation and are prepared to go to considerable lengths to ensure customer satisfaction. Customers might therefore be offered the following;

  • loyalty bonus schemes for regular clients (for example 15% discount, or a free haircut for every 8 paid for); these might be on a formal or ad hoc basis
  • discounts for clients who have more than one treatment (the bill might, for example, routinely be rounded down)
  • discounts for students, children and pensioners (10% - 25% is common)
  • price reductions during traditional quiet periods
  • occasional special offers (for example half-price perms)
  • free/discount haircuts for customers who act as models on training nights
  • free re-styles and extra treatments for dissatisfied customers

Special prices might also be offered to members of certain organisations. Many hairdressers form friendships with their regular customers and find it difficult to charge them the full price. Employees might make unauthorised discounts to their own friends and regulars for this reason, or in order to receive larger gratuities.