A Few Really Bad Decisions Made By The Cosmetology Industry #2

This is a continuation of a prior blog. To read the previous blog, scroll down to the following article.

At the end of the previous blog, I said that I would next discuss one of the mistakes salon owner's have made in attempting to increase the salons income when faced with fewer clients.

The typical owner's response has been "Chair Rental". A disastrous decision which has removed them from being hair-stylists and business owners, and turned them into landlords.

They sacrifice all control over the business in exchange for a weekly, or bi-weekly, rent check. Once again, because I have spent my life in this industry, I have observed the ways in which salon life has changed as chair rental has become increasingly the industry norm.

From the owner's perspective, they have no employees. They have tenants. And because they have no employees, most owners feel no need to create a warm / friendly / family like environment. And so, the salon takes on a very chilly, business like, ambience. Not the type of thing that attracts most artistic people to begin with. These owners tend to provide little, if any, ongoing education. Likewise, they usually do not feel the need to provide advertising or marketing for the salon. Once again, they do not have emloyees, they have tenants. And most landlords in a shopping center do not provide advertising for their tenants.

From a renters perspective; it is a very isolating experience. Most of your co-renters will come in, do their clients, and leave. Since you really do not "work" together, you do not have co-workers in the more traditional sense. And there is a kind of coldness that was not present just a few years ago. As mentioned previously, the warm / friendly / family environment that was so common in salons some years back, seems replaced by a cold / business like atmosphere. The clients do not necessarily see or feel this, but you certainly will. The irony is that most young people who are attracted to the industry are attracted because they dislike the cold business nature of corporate America. And yet, that is exactly what the modern renters salon is becoming.

I use the term co-renters, because that is what they are. They are not your co-workers, and they are not your colleagues. They are your direct competition. It is as though one of you is McDonalds while the other is Burger King. And your buildings have been set up right next to each other on the street.

It is unlikely that your co-renters will offer much in the way of backroom assistance or guidance either. They are there to do their clients and leave. If you are unsure what to do, or run out of product, this is not their problem.

Which brings up costs. You will be supplying all your own products. The salon doesn't supply you with haircolor, perms, etc. You don't work for the salon. And while $5 or $6 dollars for a tube of haircolor may not seem like a lot, try buying 50 or 100 tubes of haircolor, plus the peroxide, and the brushes and the ..... You get the point. It is expensive, and all the responsibility is on you.

There is very little of what you might call "salon life", no education, and no support.

It is probably the perfect enviroment if you are a loner by nature, not very friendly, have no desire to interact with anyone else, and have plenty of money to set yourself up. Otherwise, you might want to consider other options.

Finally, we come to the subject of money. As I said at the outset, I believe the rental salon evolved out of the salon owner's need to increase their monthly income after the once-a-week ladies were chased out of the salon. But in most instances, it has worked out just the opposite. And nobody is making any money, except perhaps the building owner and that is usually not the salon owner. It seems more and more that everyone is just working for the rent.

As a closing thought, I have noticed a new trend. It is not very wide spread as of yet, but it is growing. And that is the rise of such salons as Aveda and Paul Mitchell. Some big industry names are getting into an aspect of the industry where they previously had no presence. That of salon ownership. And in these salons, they have only employees, no renters.

When big names such as Aveda and Paul Mitchell (to name a few), are moving the industry away from chair rental; and when they are having no difficulty in recruiting top stylists to go with them - it tells you something about the the benefits of being an employee as opposed to renting a chair.

Again, you may not agree with all, or anything, I have said. It is only my opinion. But it is an opinion formed over many years experience with the industry. So if you are new to the industry and seeking a position, consider all the avenues before you jump at renting a chair.

It is often said that if something sounds to good to be true, it probably is. And remember, sometimes what looks like gold, upon closer inspection, turns out to be pyrite.