Nature of the trade

Factors affecting sales

Salon takings may be affected by many factors. Some of these are outlined below;

• the size, nature and affluence of the local customer base
• economic climate and level of disposable income (see Statistics: Table 4)
• the extent of local competition
• geographical location, affecting the volume of passing trade
• weather conditions (poor weather may depress sales)
• changing fashions ; treatments such as colour correction and highlighting often attract premium prices and takings may be boosted at times when 'added value' services such as these are in demand; the opposite applies, however, when the current fashion favours basic, low cost styles (for example cropping)
• the nature of the pricing policy
• the size of the outlet and the number of styling chairs available
• the number of hours for which the outlet opens each week (some outlets, for example, now remain open until 10 pm)
• diversifying (for example into beauty treatments) or expanding the range of services and products offered (see Nature of the trade: Sales mix)
• entering into a 'rent a chair' agreement (this commonly has the effect of reducing the salon's turnover)
• the proprietor's skill, reputation and business acumen (and those of his staff)
• ambience; the ability of the proprietor and staff to create and maintain a friendly, relaxed atmosphere in pleasant surroundings is of great importance
• advertising, offering special deals and engaging in promotional activities (for example fashion shows)
• efficiency levels and the number of productive hours achieved each week
• offering special productivity incentives to staff, such as commission
• winning competitions and awards (for example inclusion in The Good Salon Guide, which gives star ratings to participating salons)
• joining a high profile franchise scheme
• refurbishing and improving the outlet
• losing (or gaining) a stylist that takes (or brings) many clients with them
• introducing gift tokens so that the client base is broadened

Details should be kept of factors which have significantly affected trading results.