March proves beautiful for harried salon owners: quest for new hairdos, makeovers has a positive effect on the top line

San Diego Business Journal, March 5, 2007 by Jessica Long

March--it's not just for college hoop fans.

For salons, the madness they'll experience has to do with customers marching their way into chairs for makeovers.

Shawna Cruise, owner of The Loft Hair Design & Skin Care, estimates she handles 20 percent to 23 percent of her annual business this time of year.

"You will notice that the gym business gets busy in January and February, the same thing goes on in our business only in March and April after people have been to those gyms," Cruise said.

Cruise, who opened her Escondido salon in 1998, employs 22 people.

In addition to those who kept their New Year's resolution to shed a few pounds, Cruise said most clients believe March is a safer time to make radical changes because there aren't as many events to attend.

Elaine Leach, who with her husband owns Blue the Salon Inc., said she has noticed a similar trend in her 11-employee shop, located in La Julia's Bird Rock.

"We are really busy at this time of year," Leach said. "We also get a lot of new clients ... maybe because people who want a change want to have that feeling of trying some place new, too."

She also notices a 20 percent increase in business this time of year.

To match their new hairdos, makeover-seekers are also pumping the spa business. At Skinsational Skin & Body Spa in Carlsbad, owner Joyce Carboni estimates new client bookings are up 25 percent in

March alone. Most are there for skin care and makeup treatments.

"We are absolutely swamped right now," said Carboni, who opened the business in 1997 and employs 15 people.

Carboni said another reason for the makeover season may be because people are more apt to redeem holiday gift cards for services they wouldn't normally pay for themselves.

A Hollywood Handout

According to the U.S. Census, the domestic salon and barbershop industry generates more than $28 billion in sales, and it is growing.

Cruise credits reality makeover shows on television, and younger movie stars who maintain their looks and figure after childbirth and older ones who remain fashionable into their 50s and 60s. It's become the chic thing to do.

"Change is scary and anytime people see people on television making changes it makes it alright, it makes it a little bit safer," said Cruise, whose shop was named to Salon Today magazine's list of the top 200 fastest-growing salons for the second year.

Celebrity morns and sexy grandmothers aren't the only image-makers helping to lure more clients into the salon chair.

Celebrity actors and athletes are also increasing the demand for color and texture services for men, and there's still plenty of room for that area to grow, Cruise said.

Cruise, who has worked in the industry for 20 years, says she has noticed a change in the attitudes of her male clients.

"What I noticed ... is they're a little shyer about asking for it, but they're interested for sure," said Cruise, whose typical client is 25 to 55 years old. Thirty percent are men, 70 percent women.

A Head For Business

The March makeover season runs into the other months, too, when high school proms and weddings take center stage.

At Blue the Salon the busiest month of the entire year is May.

Leach's business is also helped by the many clients who come in to get their hair done before leaving on summer vacation.

When it comes to attracting new clients, both Leach and Cruise agree it's based on referrals. Neither salon does much traditional advertising. Instead. each offers rewards for current ones.

"My advertising philosophy is do what you do and do it better than anyone else, that's it," Cruise said.

Cruise made Salon Today magazine's top 200 fastest-growing list this year with a 37 percent growth in revenue last year. This year, she anticipates a 31 percent increase over 2006.

Probably one of the biggest boosts to her bottom line was changing the status of her workers from independent contractors to employees, a three-year transition that was "painful but well worth it," she said.

And helping in the money was, of course, makeover season.

"The makeover world is so big," Cruise said. "You can make someone go from trashy to classy, from a tomboy to girly from old to young; the makeover market just goes on and on and on."