Dollar stores remain all the rage. People love buying stuff for $1.00 even though many items are overpriced and undervalued. But at a buck, how wrong can you go?
So you might wonder about $1.00 haircuts. Chains such as Great Clips are doing $2.99, $3.99, and $7.99 cuts. Great Clips business is booming.
This story reminds me of a hotel with 400 rooms. The room rate is $199.00 per night. Competition has rooms for $149.00; $99.00 and so forth. The hotel has a choice: leave the rooms empty or make enough revenue to cover costs. Once the night turns into day, the rooms have lost all value.
How many hairdressers are newly graduated? Or just finished apprenticeship? Of these, how many would love the opportunity to learn on real people, real customers? I bet all.
Here's the thing: If there aren't any clients coming in, these hairdressers are sweeping, cleaning, talking and waiting. Every hour that passes by is an hour without revenue and without experience gained.
In tough times like these, why not charge $1.00? Clients will love the opportunity, they will tip generously and perhaps even buy some retail products. And what does anyone have to lose?
One tanning salon owner I spoke too recently told me he is opening 6 new locations. His friends tell him business is down 20-30%. He tells them to get busy promoting or get busy to close. He goes on to tell me that the business is out there. If you have to give 2 weeks free tanning, who cares--the cost is minimal and they will buy products to generate revenue.
Perhaps $1.00 is too low for some salons, think about $5.00. The story ends simply by keeping your mind open to new things and remember, nothing ventured, nothing gained.
Happy Thursday!
P.S. I will return next Wednesday.
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