The Personal and Hair care industry is seen as "recession resistant" and existing profitable locations are frequently being sought. A skilled employee's clients often follow them to nearby locations, creating an attractive addition to an acquired location. Absentee owners have also been successful with barber shops and beauty salons by promoting a seasoned employee to management.
The industry is highly fragmented, with the top 50 companies holding a small 15% of the total market share. These businesses are almost always independently owned and rarely grow beyond the size of 10 stylists. Stylists are generally independent contractors who rent one of the stations. Both cosmetoligists and barbers are licensed in Texas.
Listings of Personal and Hair Care Salons For Sale in Texas
Popular DFW Texas area Hair Salon for sale - Absentee Owner Opportunity
Established Fort Worth area Beauty Salon for sale in high traffic area
Arlington Texas Beauty Salon and Spa for sale
Established Arlington Texas Spa for sale in high traffic area
Dallas Texas Laser Treatment and Skin Care Salon for sale
Industry Overview
While beauty salons command a lion's share of the industry revenue, barber shops, nail salons, day salons, and massage centers are all popular. Demand for personal and hair care salons is driven by demographics, fashion trends, and population growth. Smaller companies can compete easily with larger ones on the basis of location and technology or individual skills. The industry is very labor intensive with average employee revenues of around $35,000.
Salons are typically 1,500 square feet in size and located in a mall. They are frequent tenants of the smaller neighborhood strip malls. Operating expenses for a barber shop or beauty salon is very high, often 80% of revenues.
Hair care or other personal care products are generally sold to improve profitability. These items are high margin and can amount to 5% to 40% of a salon's revenues. Receptionists frequently receive a commission on products sold. Other services such as facial treatments, makeup, tanning, and bikini waxing may also be offered to increase sales.
Hair salons and nail salons often use independent contractors who manage their own station. As with most barber shop and beauty salon employees, tips are a significant source. This along with industry's dependence on customer loyalty make customer service of primary importance.
Hair cutting is typically less than an hour, unless coloring is involved which may last several hours. It is common for women to have coloring done on a monthly basis and clients for hair cuts generally return every six to eight weeks. These clients develop long term loyalties to individual stylists and may follow them if they move to another nearby location.
Industry Benchmarks
Pricing is lower and competition is higher at the market's lower end (which may rely heavily on a walk-in trade as opposed to the appointments required for high end establishments). Operating expenses for a beauty or nail salon can be as high as 80%, making a good location and reputation critical for steady business and profitability.
Reasonable expense profiles as a percentage of sales for a barber shop or personal care salon business opportunity are:
Cost of Goods Sold: 12%
Labor Costs: 60%
Occupancy Costs: 10%
Pretax Profit: 18%
Request additional information from Bob Fariss
Fields marked with * are required.
