Nature of the trade

Suppliers, terms obtained

Many (but not all) salons purchase a considerable amount of hair treatment products, such as shampoo, conditioner, styling gel and perming lotion. These are commonly purchased in bulk quantities and may have to be 'bottled down' into smaller containers for ease of use. Additional goods might be purchased for resale, including styling mousse, hair wax, combs and other similar products. Hair products are normally purchased from some or all of the following types of supplier;

• manufacturers (such as l'Oreal and Wella)
• specialist wholesalers
• cash and carry outlets

Franchise holders may be obliged to purchase all or an agreed percentage of stock from the 'parent' company. Some may receive extra discounts for doing so. Hairdressing salons may obtain some or all of the following terms from manufacturers;

• volume discounts of up to 20% - 40%
• financial and practical assistance with staff training
• account facilities and up to 30 days credit
• exclusivity of supply (some manufacturers do not supply retailers)
• technical and promotional support (for example point of sale material)
• special promotions, offers and incentives (for example shopping vouchers)
• minimum order requirements

Small salons may not, however, qualify for many discounts and incentives and may find it difficult to meet minimum order quantities. Such businesses may prefer to purchase supplies from a cash and carry or wholesaler. While volume discounts and account facilities are not normally offered by cash and carries, specialist wholesalers may offer bulk discounts, retrospective volume rebates and up to 30 days credit.

In addition to purchases of stock, other salon costs include laundry, printing and expenditure on specialist services and utilities. These goods and services may be obtained from a range of specialist suppliers.