How to Maximize Profits Even in Difficult Times

By Nazy Curtis, Amani Hair, Newport Beach, California

EDITOR'S NOTE: As a vendor and salon owner, Nazy Curtis offers advice on maximizing profits in the industry. These are among the most common questions she fields when talking with studio owners.

Finding options is one of the most important topics in our industry right now. Learn how to acquire new facts about the importance of working with the right supplier, building your own inventory strategically, and investing long-term in your business to be truly successful.

How can hair quality improve your business?

One of the most important factors is to know where the wigs and top pieces you buy come from. The hair should come from an impeccable origin, it needs to go through an extreme quality selection and be traceable. You should know the origin and purchase accordingly. If you choose your supplier carefully, and consistently deliver quality to your client, they will come back again and again.

Is buying hair online a good idea?

Maybe not. In some cases, by buying your wigs from the factory direct and eliminating the middleman, buying in volume online, could save you money. With this strategy, you attempt to save money on hair systems, but sometimes there can be issues with these types of orders because of back orders or misunderstandings related to website information and photos. While in many cases ordering online is easy and convenient, many times the risk does not equal the savings.

Why 'program hair' is no longer cost-effective or viable?

With the unit prices rising and unpredictable delivery time, program hair is no longer profitable for many studios unless you build your own inventory. Even then it's still difficult to make the client understand why they have to pay almost double for the same program.

How inventory control can improve your business?

Why do you need to anticipate typical client needs? What is your clientele? Do you serve mostly male or female clients, more short or long hair, what colors are getting sold in your area? Build your own inventory strategically. Have your “bread and butter” pieces always on hand because that will guarantee quality and you control the variables so you are less dependent on the volatility of the market. Owning your inventory without having to pay for it until needed allows you to guarantee the hair you want when you want them. But, it is important to work with a supplier who doesn’t want to compete with you and can guarantee quality hair. Would you be willing to pay about the same amount per piece up front, with the remainder paid after the sale to guarantee the quality, color and cut flexibility, inventory and delivery control, much higher profit, high customer satisfaction, repeat customers, and referrals? Absolutely. You need to be a smart, strategic, long-term investor in your own business to truly take advantage of today's market situation.