Common challenges and solutions in the hair salon industry (2024)

Salon owners are smart, creative people who are often being challenged when running a business. This is usually due to lack of marketing, financing problems, poor planning and mismanagement. Here are some of the major problems salon owners face, and how you can solve them:

Keeping up with the trends

The trends of fashion and styling are constantly changing in today’s times, so to be a successful salon owner, you need to be able to keep up to date with what’s trending in your industry to be able to advise your clients and meet their expectations, especially younger ones. It can be hard to find the time to do your research, but try and give yourself one morning or afternoon each week to do your online research. Also try to attend hair and beauty shows several times a year. This will prove that you have skills and knowledge to offer to all ages.

Competing with the big brands

Most salon owners sell hair products in their salons, but it can be hard to sell these with such a wide range of choices of products in national stores like Boots, Superdrug and supermarkets where they sell similar products at lower rates.

But one thing that salon owners can benefit from that these shops can’t, is that they actually get to communicate with their customers on a better level – use this to your advantage! Talk to your clients to find out what they struggle with the most with their hair, and then provide products that solve their problems. For example, a lot of your clients might always have dry or frizzy hair, and are looking for a good hair serum.

Also get your clients’ email addresses and use email marketing to cross sell your products and services. If a person comes in for just a trim and styling, email them about hair colouring. Email your clients about products that could be relevant to them as well. Also if you ever provide promotions and discounts, use email marketing to advertise these.

High staff turnover

With this being a low-paid industry, there is a high turnover in staff as well as staff with low skillsets. This can make the hair industry an unattractive career option, resulting in younger staff being employed who are less motivated to strive high.

Business owners need to reverse this negative perception of the industry, firstly by improving working conditions to attract suitable staff and retain them, and secondly by investing in their development and taking an interest in their well-being. To address the low wage problem, develop a strong vision of the purpose of the company with a strong development path to attract and retain staff. The sense of progress and upskilling (resulting in higher value to the company), combined with incentives is a good way of keeping staff and growing their loyalty.

Getting new clients and KEEPING clients

Many salon owners are always working on trying to bring in new clients, which is good, but remember to put your efforts into keeping the clients that you already have. Loyal clients are important in this industry, as some people can get their hair done as often as once a month!

Provide incentives to your loyal customers – examples of these are loyalty cards, discount vouchers, or even giving free products to clients who come to your salon more than a certain amount of times. Or a simple gesture like providing your most loyal clients with a Thank You card and a box of chocolates for their loyalty to you can really go a long way.

To gain more clients, offer additional services out of the salon like wedding shoots and photo shoots. Not only will this build you client base but it will boost your bank balance greatly!

Are you a hair dressing company that faces these common challenges?

Click here to see exactly how I can trim your hair dressing business into shape!

Common challenges and solutions in the hair salon industry (2024)

FAQs

What is the biggest challenge in hairdressing? ›

The Biggest Challenges When Running a Hair Salon
  • Obtaining New Clients. One of the most significant battles that a salon can face is seeking out new clientele. ...
  • Retaining Old Clientele. ...
  • Managing Your Staff. ...
  • Product Sales. ...
  • Salon Maintenance.
Nov 20, 2021

What is a problem in the hair industry? ›

Salon owners are smart, creative people who are often being challenged when running a business. This is usually due to lack of marketing, financing problems, poor planning and mismanagement.

What is a weakness in a hair salon? ›

Lack of skilled staff: This is undoubtedly a big weakness that can kill your business before it even takes off… A Poor location: If the salon is located in a less visible or less convenient location, it may be less likely to attract new customers and may have lower foot traffic.

What is the toughest thing about owning a hair salon? ›

Here are the top fifteen challenges you may encounter while running a salon and possible solutions;
  • High bills. ...
  • Keeping up with the trends. ...
  • Staff motivation. ...
  • Payroll management. ...
  • Difficult customers. ...
  • Salon maintenance. ...
  • High employee resignation rate. ...
  • High start-up costs.

What is the most challenging part of cosmetology? ›

Interpersonal Skills and Client Relations

Another aspect to consider when evaluating how hard cosmetology is to learn is the interpersonal element of the profession. Cosmetologists frequently interact with different clients, each with unique personalities and preferences.

What are some ethical issues in a beauty salon? ›

What is a Salon Code of Ethics?
  • Confidentiality of client information. ...
  • Honesty and integrity. ...
  • Quality of services. ...
  • Respectful treatment of clients and colleagues. ...
  • Adherence to laws and regulations. ...
  • Usage of salon property and resources. ...
  • Conflicts of interest. ...
  • Acceptance of gifts from clients.
Nov 7, 2023

What are the three common hair problems? ›

Dull Hair. Heat Damaged Hair. Hair Color Damage. Hair Loss Due To Health Reasons.

Why I left the hair industry? ›

High Stress and Burnout

Hairdressers may deal with physical stress from long periods of standing or repetitive movement. They may also find themselves in emotionally taxing situations such as resolving conflicts between clients or dealing with constant criticism.

Are hairdressers struggling? ›

According to new industry research a quarter of hairdressers are thinking of closing due to a combination of higher bills and fewer clients.

What are threats for salons? ›

Threats. Are factors within the salon that are hindering progress and performance, or they can also be external forces such as market competitors, changing expectations in the market, financial issues, and trends.

What is a SWOT analysis for a hair business? ›

Hair salon owners or entrepreneurs can use this Hair Salon SWOT Analysis Template to assess the strengths, weaknesses, opportunities, and threats of their business and develop effective strategies for growth and success in the competitive market.

What is a competitive advantage of a salon? ›

Competitive Advantage

Friendly and welcoming customer service given by highly regarded licensed professionals in the beauty industry. Rewards program for patrons to earn a free service after 9 visits. Referral program where patrons can receive half off a service for recommending or bringing in a friend to the salon.

Where do hairdressers make the most money? ›

Best-Paying Cities for Hairdressers

The metropolitan areas that pay the highest salary in the hairdresser profession are Fort Collins, Muskegon, Portland, Seattle, and Boulder.

What is the failure rate of hair salons? ›

You went to school to learn how to cut hair, do nails, and perfect your craft. However, lessons on operating a business were never in the curriculum. The salon industry is one of the most competitive industries in the market. Approximately 80% of salons shut down within 18 months of closing their doors.

What are the challenges of being a hairdresser? ›

Before choosing cosmetology as a career, familiarize yourself with the unique challenges faced in cosmetology.
  • Learning Curve. To become a cosmetologist, apply to a cosmetology program. ...
  • Certification Requirements. ...
  • Chemical Exposure. ...
  • Adjusting to Client Needs. ...
  • Burnout and Stress.

Why do people quit hairdressing? ›

High Stress and Burnout

It requires dealing with difficult clients, managing erratic schedules, and staying up to date on changing trends and techniques. The stresses of salon life can start to accumulate over time, leading to burnout or exhaustion.

Why is being a hairstylist stressful? ›

Hairstylists are expected to help improve their client's identity, but when hairstyles don't turn out the way a client expects, this can cause a lot of stress for them. The amount of trust that clients put into stylists can put a lot of pressure on stylists.

What are some things that may not be so great about being a hairstylist? ›

3 cons of being a cosmetologist
  • Physical work. Cosmetologists may spend much of their workday on their feet, standing in different positions and circling clients. ...
  • Chemical exposure. A cosmetologist's practice inherently involves makeup and hair products that may contain chemicals. ...
  • Licensing requirements.
Jun 24, 2022

What is the most common skin problem encountered by hairdressers? ›

Hand eczema is frequent among hairdressers. The aim of this open survey was (i) to assess the prevalence and identify causing factors of hand issues encountered by hairdressers and (ii) to assess the benefit of a cosmetic skin care in clinical signs and symptoms through a clinical observational survey.

Top Articles
Latest Posts
Article information

Author: Dan Stracke

Last Updated:

Views: 6406

Rating: 4.2 / 5 (43 voted)

Reviews: 82% of readers found this page helpful

Author information

Name: Dan Stracke

Birthday: 1992-08-25

Address: 2253 Brown Springs, East Alla, OH 38634-0309

Phone: +398735162064

Job: Investor Government Associate

Hobby: Shopping, LARPing, Scrapbooking, Surfing, Slacklining, Dance, Glassblowing

Introduction: My name is Dan Stracke, I am a homely, gleaming, glamorous, inquisitive, homely, gorgeous, light person who loves writing and wants to share my knowledge and understanding with you.