There is no doubt that times are hard for small and medium-sized businesses – banks are less willing to lend, consumers are generally more reticent about spnding and the gloomy haedlines don’t suggest it will end any time soon. But not everyone is suffering the effects of the credit crunch – some salons are actually prospering, despite the economic climate. Wile savers have been hit by the falling interest rates, it has proved a winner for those with hefty mortgages, freeing up disposable income and Cumbria-based Hair@Jibe, HJ’S 2008 Retail Salon of the Year, has taken full advantage. Said co-owner, Jason Brierley: “Bucking all economic trends, Jibe’s retail figures for February were up 25% on February 2008. I put our success down to our approach. A lot of our employed clients are in a really good position at the moment – with VAT and mortgage rate reductions, they actually have more disposable income”. Continued Jason: “We talk to our clients about products, giving them all the advice and recommendations they don’t get when faced with a shelf of hair products in the local supermarket. Giving our professional advice is definitely paying off. We are also explaining to those clients who may be watching how much they spend that professional products are better value for money”.

Successful times
Victor Pajak, managing director of Headquarters Hair Salon, Kingston-upon-Thames, Surrey, is pleased with the performance of his business during the first two months of 2009″. Despite the current economic climate, we have had a pretty healthy January and February, with gross turnover down by just minus 1.7%. Success at times like this is all about the experience”, he said. “Clients are justifying everything they spend, so we are ensuring they receive not only an impeccable personalised service, but lots of added value, including complimentary treatments, head and neck massages, and luxury refreshments”. Russel Eaton in Barnsley, South Yorkshire, has completely bucked the trend, experiencing increases in turnover in January and February of 5% and 7% respectively. “We have ah a great start to the year because we put a lot of effort into our marketing in December so that we would reap the rewards in early 2009 and it worked”, said Russel. “We employed a local design agency to put together a leaflet featuring some excelent offers. Clients really appreciated this as they were worried about costs, especially following Christmas”.

Record trading 
Leicestershire-based Barrie Stephen Hair and Beauty had its best ever January since the company started trading in 1996, according to barrie. “We’re approaching business a bit differently this year”, he said. “We’re anticipating and acting to ensure our business keeps moving forwards and growing. We are determined not to participate in this recession”. Activity used to drive business has incuded vouchers for £10 off a haircut in a local glossy magazine and a range of offers on colour throughout February. Said Barrie: “We went big with promotions, but we are backing this up with all stylist attending colour refresher courses”. Turnover is up at three of Sean Hanna’s salons, and only actually down in one. “In January, we experienced a netincrease across the group of 7%”, said Sean. Sean is still reslistic about the potential for difficult times, However, and is not about to relax. “I think most people are feeling slightly apprehnsive – it’s hard to remain totally optimistic when the media is full of horror stories. The fact that some clients are actually better off with interest rates now at an all-time low may go some way to balancing the effect on clients who have been adversely affected and have a reduced disposable income”. Andrew Phouli, of Rush London, and HJ’S 2008 Business Director of the Year is confident the recession will not slow down his company’s growth. “As I stated at the end of 2008, Rush is recession-proof. Our figures are up by 7% on 2008, and we have opened four salons this year so far. Plants to open more than 30 salons are well on track and expansion is looking good”, said Andrew. “When building a business you need to have strategies in place for all circumstances, so when the economic climate was challenged we amended our strategies accordingly. Salon owners who forward-plan and build flexibility into their schedules should be able to deal with all eventualities, so a recession should not prove difficult”.