Interesting Thoughts After A Routine Hair Cut

[klm79]

Good Afternoon Everyone,

Just got back from getting my hair cut. Have been seeing the same lady for almost 3 years but this was the 1st time I saw her in the new location.

Her new location is in a 4,000 square foot space in a massive shopping center(that has quite a few open spaces FYI) that is shared amongst 34 other hairdressers/manicurists. Each has their own individual space where they act as their own independent contractors.

It's very similar to this one https://salonlofts.com/

She mentioned she pays $1,120 per month for her 100 square foot space.

This includes in her space:

• Shampoo Station
• Adjustable chair for customer
• Heating/Air control
• All utilities
• Basic Cable

Everything else in her space is up to her such as bringing in her own business and keeping her specific space clean. She loves it as she runs autonomous from others and can do what she wants/work when she wants/charge what she wants.

All 35 spaces are sold out, so the owner is making almost 480k in revenues per year for this space. I have no clue what his expenses are but essentially just operating as a landlord who's in charge of utilities,cleanliness and maintenance.

Just found this to be an intriguing business which could be replicated in many areas. It's never been easier to start a business, and a lot of these hairdressers don't need the salon owner anymore to drum up business and "look out for them".

Has anyone else come across these recently or something similar?

 

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[snowbank]

Has anyone else come across these recently or something similar?

many barbershops/hair salons are run this way

 

[klm79]

many barbershops/hair salons are run this way

I brought up something similar to her about this.

She mentioned that in previous salons like this where she rented a chair she always dealt with unfulfilled promises from salon owners who promised upgrades to the facilities or what not but never happened.

This allows her to truly have her own spot where she can customize the entire space & sell any product she'd like.

I basically gathered she's in complete control of her operation and doesn't have to answer to anyone.

 

[DrkSide]

she's in complete control

The owner of the building could:
lock the doors
not pay the utility bill
not fix what breaks

 

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[klm79]

@DrkSide you're killing me! Quoting a small chunk of my whole sentence...old media trick!!! However you are correct.

I re-read my post and realized I didn't explain my point clearly enough.

I meant to take the position that the owner of the building is the one that's really doing well here.

Was giving my hairdressers POV to talk about why he can fill up his spots so easily.

Seems like a business that could scale and wanted to just get a conversation started!

 

[AubreyJ]

That's actually really interesting. I didn't know that there where businesses that operated like this, but it does make sense.

 

[DrkSide]

You see this type of business model in the flea market industry as well. The normal problem you have is people putting junk in the booths to sell and it doesn't. We have a new one of these that opened up in my area that is making a KILLING. They charge $50 for a little 8ftx4ft "booth" and then get 25% of sales on top of that. They are completely full and have not had a vacancy for some time.

They have to qualify any vendor that they bring in to not only approve the person/business but also the things that are being sold. That means no junk and prices are at a premium but the parking lot is full everyday.

 

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