Nature of the trade

Sales mix

Some salons specialise in ladies' hairdressing, others focus on men's barbering, while many outlets are unisex (ie they offer both men's and ladies' hair styling). Although some upmarket salons discourage children, it has become increasingly common for all types of outlet to offer children's hair styling.

A range of different hairdressing services might be offered at different prices, including wet cuts, dry cuts, barbering, shampoo and set, perming, colouring, extensions etc. Many salons ensure that their range always includes the latest hair styling fashions.

In addition to the above, a hairdressing salon might offer the following services;

• manicure/pedicure
• Afro-Caribbean hairdressing
• beauty treatments (for example hair removal and ear/body piercing)
• sun-bed treatment and sauna
• head massage

Extra income might be derived from the retail sale of hair and beauty products, such as shampoo, gel, conditioner and wigs. Although many salons (around 70%) do offer some goods for sale, only a very small proportion of all retail sales of such products is made through salons. Some salons market their own range of products; a well known salon might sell some of these on a wholesale basis to smaller outlets.

A survey by the Hairdressing and Beauty Industry Authority (HABIA) (1994) found that retail sales of hair products accounted for only 4.5% of turnover in the 'average' salon. Sales of beauty products accounted for a further 0.4% of turnover. (Note: these are still the most recent figures available.) Some estimates suggest that the percentage of salon turnover which is typically accounted for by retail sales is as low as 1.2%.

Some salons (currently around 14%) derive income from 'rent a chair' schemes. A large, high profile concern might receive additional income in the form of franchise fees.