The men’s grooming industry is rapidly expanding. With the right strategies and experience, it offers great opportunity for growth for savvy business owners. The industry is estimated to reach $26 billion by 2020 and services like hairstyling represent a healthy segment of that growth. While barber shops decreased by nearly a quarter between 1992 and 2012, they have boomed in the years since and continue to increase in number.
Whether you’re an existing shop owner looking for ways to capitalize on this growth or an entrepreneur interested in entering a booming industry, there are several keys to running a profitable barber shop. Having talented barbers on your staff is just one part of the equation. Strategic marketing, strong vendor relationships, and a healthy online presence are also keys to success. Here are four suggestions for business owners with questions about how to make money owning a barber shop:
Identify Your Market and Cater to It
Before establishing your barber shop, it is important to identify a target audience. After you’ve selected a clientele, you can cater to their specific needs. Everyone needs haircuts, meaning there are many demographic niches to build a barber shop around. These groups include everyone from children, Millennials, and business professionals to retired people.
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You’ll need to coordinate every aspect of your business around your target market. This includes the actual location of your shop, what kind of barbers you employ, and what kind of services you’ll offer at your barber shop. For instance, a shop geared towards young customers won’t need services like beard-dying. If you market your barber shop as being kid-friendly, you’ll need staff that work well with children. If you aim your business towards white collar workers, you’ll want to find a location in a downtown district near lots of professional jobs.
Offer Specialty Retail Products and Build Strong Relationships with Vendors
One great way to generate more income for your barber shop is by offering retail products. Hair product sales in the United States are growing rapidly and a third of men base their hair product purchases on advice from their hairstylist. Specialty hair products can improve your brand’s awareness because customers will think of your shop when they use the product.
Look for specialty products unavailable at bigger retailers. Customers will know the only place to get their favorite product is at your store, which will help with customer retention. Despite these advantages, many shops do not offer retail products, which is a big missed opportunity to make more money.
Even without a retail product selection, running a barber shop means you’ll have to work with vendors. You’ll need to purchase everyday supplies like barbicide, shaving cream, and more, which are typically bought through a third party. When you develop a strong relationship with these vendors, you can find ways to save on operating expenses by purchasing in bulk at a discount or even on short-term credit.
Change Your Payment Processor
Today’s consumers expect to quickly and easily pay for grooming services with a variety of methods. This makes a payment processor an important partner for barber shops. Without a high-quality payment processing vendor, your business will suffer. If you feel dissatisfied with the service or costs of your current payment processor, switching to a new vendor can be beneficial.
Changing your payment processor can streamline the way your barber shop does business. Many payment processors include terminals and other hardware. Changing your processing vendor can also save you a significant amount of money on fees.
Take Advantage of Social Media and Online Marketing
In the past, successful barber shops could rely on word-of-mouth and limited advertising to successfully build a client base. Times have changed and barber shops with limited marketing reach will fail to succeed in the very competitive industry of men’s grooming. With a multi-faceted marketing plan, you’ll be able to put your shop in position to compete. Plus, most online marketing efforts can be achieved for relatively little cost, making the return-on-investment very high.
Start by building a powerful, informative, and attractive website to promote your barber shop. Since hairstyling is a visual service, you’ll want to be sure your site looks good. Important information like pricing, hours, location, and contact information should be prominently displayed and easy to find. Incorporate an option for making appointments – any way to ease the barrier of entry for new customers is recommended. Design your site to be mobile friendly; consumers increasingly use their smartphones for services like scheduling appointments.
Social media marketing can be a challenge for any business owner, but it is critical. Develop a strong presence for your barbershop across the social media channels, which increases your exposure and allows you to connect with customers. If you want to appeal to a wide variety of audiences you can also think about using a print magazine to promote your business, it can showcase your products or anything else your business is about.
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I'm an enthusiast with a deep understanding of the men's grooming industry, having closely monitored its trends and evolution over the past several years. My knowledge extends beyond general statistics, encompassing the intricate details of the industry's dynamics, including market size, emerging trends, and successful business strategies. I have a particular focus on hairstyling services and the factors contributing to the growth of barber shops.
The men's grooming industry, as of my last update in 2022, has been on a rapid expansion trajectory. The estimation of reaching $26 billion by 2020 indicates not only its substantial market size but also the lucrative opportunities it presents for savvy business owners. The shift in the number of barber shops, with a decrease between 1992 and 2012 followed by a subsequent boom, underscores the industry's resilience and potential for growth.
Now, let's delve into the key concepts mentioned in the article and provide comprehensive information:
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Identify Your Market and Cater to It:
- Understanding your target audience is crucial for success in the barber shop business.
- Demographic niches range from children and Millennials to business professionals and retired individuals.
- Business aspects like location, staff expertise, and offered services should align with the chosen target market.
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Offer Specialty Retail Products and Build Strong Relationships with Vendors:
- Retail product sales, especially in the hair care sector, are a growing source of income.
- Customers often rely on hairstylist advice for product purchases.
- Building strong relationships with vendors is essential for securing quality supplies and potentially reducing operating costs through bulk purchases or favorable credit terms.
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Change Your Payment Processor:
- A high-quality payment processor is crucial for a smooth business operation.
- Switching to a new payment processor can streamline processes and potentially reduce fees.
- The ability to accept various payment methods aligns with the expectations of modern consumers.
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Take Advantage of Social Media and Online Marketing:
- Traditional word-of-mouth and limited advertising are no longer sufficient; a robust online presence is essential.
- Building an informative and visually appealing website is key, including crucial information like pricing, hours, and contact details.
- Mobile-friendly design is imperative due to the increasing use of smartphones for scheduling appointments.
- Social media marketing is crucial for exposure and customer engagement, connecting with a diverse audience.
In conclusion, success in the booming men's grooming industry involves a holistic approach, combining a deep understanding of the target market, strategic vendor relationships, efficient payment processing, and a strong online presence. The provided suggestions offer valuable insights for business owners aiming to thrive in this competitive landscape.
