How Barbers Are Adapting to Boost Profits

"When it comes to looking at how the budget will affect your business, first and foremost don’t panic and don’t listen to all the noise. Depending on the size of your company some of the changes may not affect you, so do your homework and make sure you are aware of all of the facts. That said it’s a good idea to take stock of your company, team and business in the round. I recommend taking a day at the end of each quarter and seeing how you stack up to your targets. Being proactive rather than reactive is always the best option. When it comes to pricing, the worst thing you can do is look at the shop down the road or what your friends are doing in other cities.  Each business will have completely different overheads and other internal and external factors that will influence their pricing strategy. So make sure you know your numbers before changing your prices. You need to ensure that you don’t price yourself out of your market. A key factor to look at is your average bill - how much as an average you make out of each client. A good way to improve the average bill is to offer a service within a service, for example when you have a client that has a hair and beard service, you could also offer a beard colour service, not only to cover grey but to give depth and to help it look thicker. This can be added into the service and only takes a extra couple of minutes. Cut the beard first then apply the colour, while that develops you can start your haircut. Another way of increasing your average bill is through retail. Find a brand that sits well in your price point and that your team and you like. Ensure it covers every aspect of your client's grooming needs. Use it on your clients, talk about it, get behind it as a team and help each other. Clients usually buy with impulse and if they aren’t buying their products from you then they will buy them somewhere else!"

Jim Shaw, owner of Toni &Guy Billericay 

With the budget changes on their way in the next few weeks, it is something that will hit every single business, no matter what field they are in. The announcement of increased minimum wage, increased business rates and national insurance will have quite the impact on businesses, big and small, with many not likely to make it out of the next 12 months. As soon as the budget was announced, we looked at ways to safeguard what we can, without being hit too hard and it having a real drastic effect on the business. We’ve looked at ways to lower our costs without affecting what we offer and focusing on our wider goals as a team. Preparing for this change is key and we will be taking into consideration our current price lists and implementing small increases where appropriate, to reflect our rising costs. We will also be clamping down on maintaining the salon as a team, making sure there is less waste of products, that we are running the salon as efficiently as possible, reducing time wasting or under productivity and ensuring we all come together to make things work. We will also be heavily monitoring our outgoings week-by-week to see where we can implement better choices and finance management. For many salon owners, this will be a difficult change. My advice would be to plan financially for this. Being efficient and creating a plan will allow you to be ready for when these changes are put in place. Build amazing relationships with your clients - when they enjoy their time in the salon, price increases will not have a huge impact on loyal clients. Focus on your goals and motivate your team, creating a positive atmosphere will make for a strong business.

Charles Rose, owner, Crate Cheshire

A great thing that we are doing at Crate Cheshire to remain more profitable, is talking more about the products we stock and recommend in the barbershop. As a team, we now ensure to talk about products earlier on in consultations and show client ways to use these products at home to get the most out of them, which has definitely led to an uplift in sales. I'm also ensuring that the team knows how important it is to talk about haircare at home with clients, as this is a great way of positioning products properly and making them a natural part of the client's experience and daily routine. Also, when clients are looking to book an appointment, we are making sure to offer add-on services such as colour, beard trims and eyebrow waxes to help them make the most out of each appointment. This way, we are doing the little things that enhance the client’s experience but also help to keep the business strong. 

Support Our Salons

 

Following the Autumn Budget announced by Chancellor Rachel Reeves in the House of Commons on Wednesday 30 October 2024, the Professional Beauty Group has launched the #supportoursalons campaign.

HJ and Modern Barber have seen just how the Autumn 2024 Budget has affected hairdressers, barbers and the personal services sector – from the increase in National Insurance Contributions, to the impact the Budget will have on apprenticeships.

The Professional Beauty Group is therefore launching the #SupportOurSalons campaign, dedicated to sharing your stories, as well as reporting on any changes to legislation. Join our campaign to get your voice heard.

The group believes that the rise in National Insurance (and scaling back the allowance to £5k) is disproportionately hurting the salon sector with surveys suggesting that some salons will be forced to close, while others will cut back staff and apprenticeships. This will have a long-term effect on our industry, and the measure could drive business underground, with people potentially using self-employment contracts which will have a negative effect on HMRC’s revenue. 

Join our campaign and write to your MP. Why not write an email or letter to your MP and invite them into your salon to experience just how amazing our sector is?