What Weaknesses Does a Hair Salon Business Have?

Hair salons are involved in a competitive industry with diverse target markets. Strengths-
Identifying the strengths of a hair salon can, at times, be as easy as looking at the clientele. A hair salon with an abundant clientele list is a sign of successful marketing, good operations and strong client management. Still, a strong analysis will identify the reasons that those strengths are strengths. Factors like a well-trained team and a high traffic location may be the core strengths of the salon.

Anyone who graduates from beauty school probably thinks about owning a hair salon one day. The desire is often fueled by dreams of expressing creativity, developing a clientele and raking in profits. Rarely do these dreams include human resources problems, employee theft and payroll tax implications. These issues are the downside — or weakness — in the hair salon business.

High Turnover

Recruiting and employee retention are two of the biggest problems in the salon industry. Because education for hair stylists is regulated by states, there is no national standard for competency. Salon owners rely on tryouts and references in recruiting. Yet turnover remains high. Stylists who leave without notice disrupt staff schedules and client appointments. High turnover affects sales and erodes a salon’s reputation. The ease with which stylists leap from one salon to another keeps hair business owners in constant recruiting mode.

Employee Compensation

How a hair salon compensates employees dictates cash flow, turnover and taxes. Most salons pay employees a commission. They start with a 60-40 split in the salon’s favor. However, stylists and nail technicians who increase the salon’s clientele soon request a 50-50 split. In this case, the salon owner gets the short end of the deal because rent, utilities and the cost of goods sold are paid from the owner’s 50 percent. The owner must raise prices to counter the increase in compensation or accept reduced revenue. Some salons pay salaries to minimize the impact that commissions have on profits.


Further complicating the stylist-salon owner relationship is the way the federal government taxes tips. The Professional Beauty Association has lobbied Congress for years to pass legislation that would give salon owners a tax credit on employee tips. The association seeks a deal like the one that applies to restaurant owners via section 45B of the Internal Revenue Code. As it stands, salon owners receive no tax credits and must pay taxes on employee tips. Stylists at high-end salons can generate more than $10,000 annually in tips.

Poor Industry Ethics

A software developer for a technology firm could not quit his job without notice, walk away with that firm’s proprietary information and take a job with its competitor all in the same day. This happens all the time in the salon industry. Stylists routinely take confidential client information and claim the clients as their own. Although some salon owners require employees to sign non compete contracts, these agreements are difficult and costly to enforce. Ethics problems also arise when employees steal salon products and perform additional services for free and under report tips.

Hair Salon – What You Gain From Using One

Going to the hair salon can be a pampering treat as well as a grooming essential. There are many reasons to make an appointment for the array of services which are offered. The stylists and technicians who work there have been highly trained in aesthetics as well as the chemistry and components of the body. A cosmetologist must spend many hours first in a classroom learning all there is to know about the field, then in the beauty school salon working with clients. Following this extensive training which can last up to two years, the cosmetologist must complete two exams in order to become licensed. The licensing examinations are comprised of a written portion as well as a hands-on test where the practitioner will demonstrate skills on a manikin.

Why go to the hair salon for professional services?

  • Career enhancement: A well groomed individual is much more likely to get hired for a job or promoted at their existing place of employment. Part of a professional appearance is a good haircut and manicured nails.
  • A foundation: A good haircut is the building block of one’s appearance. A high quality cut will go with any outfit and make a person’s facial appearance more appealing. Without this foundation, everything else will appear shoddy.
  • Self esteem: Having one’s hairdo cropped into a stylish look will do wonders for a person’s self esteem and confidence. This is a mood booster that even helps hospital patients or nursing home residents feel better about life and therefore heal more quickly.
    What services does a salon offer?
  • Cut: A trim or whole new style is available with the snip of a technician’s scissors.
  • Shampoo and style: If a customer doesn’t want a cut, they may still have a shampoo and blow dry or set. This is especially popular for special occasions such as the prom or wedding day.
  • Permanents: Waves or curls can be processed into one’s look with permanent processing. This is a tricky task which is best left to the pros.
  • Color: There are different ways to color one’s tresses including all-over tint, highlights or lowlights. A combination of all three may sometimes be used for a unique expression of personal style. Highlights are usually blonde streaks set against a dark backdrop of tresses and lowlights are dark ones set against light.
  • Manicures and pedicures: A majority of larger salons have a nail technician on staff. The cuticles, nails and skin are tended to on either the hands or feet by these skilled techs.
  • Makeup: Makeup artists are often available to ready a woman’s face for a special occasion. These products may be applied in salon or by a mobile service in order to adorn the faces of all females in a wedding party or on a stage set.
  • Chair massage: Nothing like a chair-massage to relax the neck and shoulders before the tresses are coiffed into a new style. Even fifteen minutes can make a world of difference.

Your local hair salon can make a big difference in appearance and mood. Get a referral for a good stylist from your friends and neighbors today.


Whether you are a man or woman, more than likely you will visit a hair salon at some point in your life to get a new haircut or new style. The salon actually has a storied past and has a different meaning today than it did just 100 years ago.

The history of the hair salon in Ann Arbor goes back to the writings of Horace. He defined it as a place where people gathered under one roof so to amuse each other with knowledge and discussion. Many times they were used for the recitation and explanation of poetry. They were well known in the 1600s and 1700s in French writings and were known to exist until quite recently in large urban centers. Many times the one in a person’s home was considered to be a place for the men to retreat to discuss things like religion and politics and other relevant issues of the day. The modern usage of the word however, is quite different.

Today the Ann Arbor hail salon is a place where people gather to get hair, nail and body treatments, and make conversation with their hosts, in this case, hair, nail, and body stylists. Some of these are considered day spas that may offer every beauty treatment available in a relaxing environment, while others specialize in one treatment, such as hair or nails alone.

Most often the day spa is considered to be a place where one can relax and alleviate some of the stresses of everyday life. Most of the time they are a peaceful atmosphere with waterfalls, fountains, soft music, dim lighting, and candles, as these are the things that are found to lead to a more relaxing environment. Treatments at a day spa often include Swedish massages, hot oil massages, deep tissue massages, and many other types of massages to soothe your aching muscles. Some offer hot tubs, warm pools, pregnancy massages and couples massages so that the mom-to-be or the couple can enjoy relaxation time together. Many full service day spas also offer slimming wraps, facials, and foot care, while some are all-inclusive and offer nail, hair, and waxing treatments as well.


310 E Washington St,
Ann Arbor,
MI 48104

Phone: (734) 224-2648


Unlike a day spa, a salon often only offers one or two services such as hair and nails or just hair or just nails. Most often your stylist has gone to a cosmetology school and has been trained in all the latest styles and can help you decide the look that is best for your hair and facial structure. They concentrate on hair cuts for all, permanents of all styles, hair coloring, and specialty hair styles for a single event such as a wedding or graduation. Some specialty shops offer African hair braiding and hair extensions to offer you that special look.

So whether you are looking for an all-inclusive place that will offer special deals on packages that may include a massage and a haircut or a place that offers just a simple hair cut, there is a salon that will whatever needs that you may have.