SalonFocus May-June 2013

THE ESSENTIAL MAGAZINE FOR SALON OWNERS

Parking curbs are killing the high street, warn salons Government plan for employer-led apprenticeships

MAY/JUNE 2013 | £3.50

‘Employment Allowance’ to benefit small businesses Check out three new member benefits

PAGE 2 SALONFOCUS MAY/JUNE 2013

WAVELENGTH

Give salons a break, not parking tickets Most hairdressers will know full well there are many factors business than many imagine. But that’s no excuse for the current often ludicrous situations we see. Our survey at play in the “perfect storm” of the decline of our local threw up – undoubtedly common – stories of clients high streets. having to dash out half done to top up their The general economy, obviously, meter, of salons having to accept shorter is a pretty important player; consumer ‘Much of the anger appointments because clients needed to get confidence is another, indeed you can is down to the fact back to their cars, of clients having to risk a argue each often feeds off the other. penalty notice for the sake of a colour, cut Then there is the internet and the, that, on many and finish, and so on. some might argue, insidious effect it is struggling high streets, You can blame thoughtless bureaucracy, having on shopping habits and, just as the undue influence of “preserve in aspic” importantly, the appetite of shoppers parking charges and community groups, the outsourcing of to venture into the physical “bricks and restrictions often enforcement to over-zealous, commissionmortar” shopping space. based private operators, even, for the more You can go more technical and feel so unnecessary, cynical among us – and many hairdressers point a finger of blame at greedy a completely petty, believe this very strongly – the suspicion landlords, business rates, increasingly that, for cash-strapped councils, parking disloyal, deal-hungry consumers, artificial barrier to tickets and fines are a rather useful, underrapacious or aggressive trade at a time when the-radar “cash cow”. Whatever the myriad supermarket chains, outlocal reasons, what salons need is action, and of-town retailers muscling retailers are crying fast. in on vital footfall or I certainly hope the new Future High apathetic planners being out for a bit of give Streets Forum set up by the government unprepared to fight to and take’ can provide some useful answers, though preserve the fabric and you do have to wonder why yet another identity of traditional “consultation” is required little more than town centres. a year on from the Portas review. To my mind what’s But the one factor, as we see very clearly required is simply national leadership – perhaps, if you will, on pages five, eight and nine, that really, really sticks in hairdressers’ throats is parking. a “national parking plan” with some proper money behind it that can give councils the space and direction they In that our members’ survey is only 150 or so strong, I fully concede it is hardly scientific; I’d need to make the right decisions and bring much-needed common sense to this problem. be foolish to try and talk it up as hard-and-fast evidence of Finally, and briefly, I feel it’s important to give credit how the industry as a whole feels about this. to the chancellor George Osborne (and that’s not a Yet evidently we struck a chord and, if I’m being phrase I’ve found myself using much over the past three honest, I suspect we may have scratched what is years) for his Employment Allowance national insurance something of an open wound for many in this industry. contributions tax break announced in the Budget in March Many of our respondents filled in the survey within (News, page five). As with any Budget announcement it’s minutes of it going up online. The sheer teeth-gnashing frustration many hairdressers feel over this issue was all too important to wait for the detail of how it’s going to work in practice, but superficially this does look as if it could be apparent in the extent of the comments – all, remember, of real benefit to many small businesses. It may not be the from busy people with businesses to run – tagged on to VAT cut the NHF would have wanted in an ideal world – a the responses (and there were many more than we had point president Mark Coray made very well – but, for now, room to publish). it’s definitely worth a thumbs up. We’ll watch how it works To my mind, much of the anger is down to the fact out with great interest. that, on many struggling high streets, parking charges and restrictions often feel so unnecessary, a completely petty, artificial barrier to trade at a time when retailers are crying out for a bit of give and take.

Yes of course councils have a responsibility to ensure towns don’t get clogged with traffic and that shoppers can get in and out even at the busiest times. Implementing effective parking and traffic flow is a much more complex

www.nhf.info

MAY/JUNE 2013 SALONFOCUS PAGE 3

CONTENTS OUR CONTRIBUTORS

News

11 12 14

Salons criticise parking curbs, but welcome Budget Plan for ‘employer-led’ apprenticeships Exclusive survey: why parking is killing our high streets Slow but steady growth for Regis/Tesco partnership Housing association’s ‘old age’ salons NHF slams October rise in minimum wage Call for tougher regulation on sunbeds

Inspired

05 06 08-09 10

17-20

22 24

Lee Manning is president of R3, The Association of Business Recovery Specialists, a partner in the restructuring services division of accountancy firm Deloitte and was one of the administrators of Blockbuster

Sarina SaulHassam is a regional head of business banking at HSBC

Robert Miles is founder of Premier Software Solutions, the NHF’s preferred supplier of salonspecific software

26 28

03 06 11 12 16 30-31 32 33 34

Basil Long is senior legal consultant at Croner, operator of the NHF’s Legal Lifeline

Ashish Kohli is managing director at Amber Jewellery

Business Focus

Work your bank harder – the benefits of switching Results by payment – how mobiles are revolutionizing the way people pay

Between a rock and a hard place – extending into jewellery Open the door – how to ‘work’ your colour house Tried and Tested – our panel testing page Front cover Hair: NHF Inspire art team Wavelength – give salons a break, not parking Creative direction: Adam Szabo and Tiziana di Marcelli from the Trevor Sorbie Art Team tickets Photography: Orsolya Luca HairClips – government’s childcare subsidy Clothes styling: Adonis Kentros Movers and groovers – Simon Webster’s Make-up: Megumi Matsuno L’Oréal success Beauty spots – beauty booming online Column – where next for the high street?

Federation Focus – new member benefits unveiled Case confidential – a helpline call resolved Events – key dates for your diary @nhfederation – all the online gossip and tweets

PAGE 4 SALONFOCUS MAY/JUNE 2013

EDITOR Nic Paton e: sfeditor@salonfocus.co.uk

EVENTS Melanie Collins t: 01234 834385 e: melanie.collins@nhf.info

Warrior romance – the latest collection from NHF Inspire, in conjunction with 2012/2013 mentor The Trevor Sorbie Artistic Team

Regulars

ACTING PUBLISHER Tina Beaumont e: tina.beaumont@nhf.info

EDITORIAL CONSULTANT Andrew Don e: sfeditor@salonfocus.co.uk

Toolbox 25

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NEWS

‘Sort out parking or the high street really will die’, hairdressers warn E xc l u s

Excessive charges and restrictive town centre parking laws are hammering hairdressing salons hard, an exclusive poll of NHF members has revealed, with more than a quarter claiming to have seen 20 per cent of their business or more disappearing as a result.

The finding comes as the government has set up a Future High Streets Forum to look at ways to re-invigorate the high street, including the promotion of “parking solutions and good practice to help high streets attract more visitors”.

The online poll of nearly 150 salon owners commissioned by SalonFocus identified widespread anger, frustration and even despair within the industry at the way parking rules and charges are being implemented and enforced by councils.

Without urgent reform – with salon owners calling for more free or cheaper parking, less zealous enforcement, better

i ve

traffic planning and even for towns to become “parking charge free” – high streets will simply continue to decline and degrade, salons warned.

As one salon owner bluntly put it: “Parking is the single biggest issue killing our town centres.

Getting a ticket for just going five minutes over simply puts negative thoughts into the mind of the shopper, who instead uses out-of-town centres with free parking PARKING: CALL FOR REFORM all day. Town centre restructuring services division of businesses are paying higher rates for accountancy firm Deloitte, has also no advantages.” branded current rules “stupid”.

Lee Manning, president of the Association of Business Recovery • Full story, pages eight and nine Specialists and a partner in the

NHF welcomes Budget tax break Salons will from next year be able to employ up to four people on the adult national minimum wage (NMW) without paying any employer national insurance contributions (NICs) at all, the government has said.

In his Budget in March, chancellor George Osborne said he was introducing a new Employment Allowance from April 2014 that would give businesses an entitlement of up to £2,000 a year towards their NICs. The chancellor estimated that up to 1.25 million employers could benefit from the plan, with more than 90 per cent of the benefit expected to go to small businesses.

“The scale of the allowance means that 450,000 of the UK’s small businesses will no longer pay any employer NICs. On average, employers with fewer than 10

www.nhf.info

employees over the course of the year will see their employer NICs bill reduced by 80 per cent,” he said.

Every business would be able to employ one worker on a salary of £22,400 or four full-time employees on the adult NMW without paying NICs, he added.

Eligibility will be confirmed through regular payroll processes, with the benefit deducted from an employer’s NIC liability over the course of that year’s PAYE payments, the Treasury said.

NHF president Mark Coray welcomed the move. “At first assessment the new £2,000 Employment Allowance seems like a very positive measure. Anything that reduces the cost of taking on staff is going to be welcomed, especially by small and micro businesses,” he said.

He also broadly welcomed the chancellor’s announcement that

Corporation Tax will be reduced to 20 per cent from 2015 as well as the introduction of new capital GEORGE OSBORNE: gains tax relief EMPLOYMENT ALLOWANCE on the sale of businesses to employees, something he highlighted could potentially be beneficial for family-run businesses.

“Our one disappointment is that the chancellor did not use the Budget to revisit the 20 per cent headline rate of VAT,” he said.

“Reducing VAT would have been a quick and easy way of putting money back into shoppers’ pockets and providing a much-needed stimulus to our hard-pressed high street,” Mark added.

MAY/JUNE 2013 SALONFOCUS PAGE 5

NEWS

Employers ‘should be in the driving seat’ of apprenticeships New-look, employer-led apprenticeships could be up and running within the next two years, the government has said, as it has pledged employers should be put at the heart of designing apprenticeships.

The news is potentially a major fillip for the NHF on the back of the agreement in NICK CLEGG: March of an apprenticeships’ FOCUS “manifesto”, The Future of Hairdressing & Barbering Apprenticeships, which has similarly set a goal of developing a Federation-approved apprenticeship for the hairdressing industry.

The government’s move was outlined in its response to the Richard Review into apprenticeships, also published in March, which largely endorsed all the recommendations made by entrepreneur Doug Richard last November.

At its launch, deputy prime minister Nick Clegg said: “It’s vital that apprenticeships are tailored around what employers want, allowing them to design their own qualifications and choose their own training provider, rather than getting a one-sizefits-all programme that’s bad for apprentices and bad for employers.”

Business secretary Vince Cable added: “These plans will MARK CORAY: radically change the way we TRAINING deliver apprenticeships. They will put employers in the driving seat so they can develop the workforce they need to grow their business.”

NHF president Mark Coray strongly agreed.

“Focusing apprenticeships on the outcome – in the case of our industry being able to thrive and progress within a busy salon – is absolutely correct, as is giving employers a much greater say in the design and delivery of this sort of training.

“This is potentially a huge opportunity for employers – and for the NHF – to make a difference,” he added.

The NHF will be submitting evidence to a consultation on the response, which runs until May 21, as well as looking to work closely with ministers in the longer term, he added.

In the response document, the government

PAGE 6 SALONFOCUS MAY/JUNE 2013

emphasised that, at their core, “apprenticeships must be about the relationship between an employer and an apprentice”.

Crucially, it agreed that “it is for employers to define the standards and scope of learning required for each job role or occupation”.

It added: “These should describe what an employer requires from a fully competent apprentice at the end of their training.

They should focus, in broad terms, on what is needed to demonstrate mastery of an occupation, not competence in a series of narrowly defined tasks.”

In terms of what happens next, the government has said it intends to set out its broader approach and future timetable in the autumn with the aim of having the new-look apprenticeships up and running by 2014/15 at the earliest, or 2015/16 in sectors that cannot move that fast.

The full response document, The Future of Apprenticeships in England: Next Steps from the Richard Review, can be found online at: https:// www.gov.uk/government/consultations/futureof-apprenticeships-in-england-richard-reviewnext-steps

The government has recommended that: • •

•

•

• •

employers should put recognised and meaningful industry standards at the heart of every apprenticeship; every apprenticeship should be targeted at a skilled job, involving substantial new learning that will provide the foundations for a career and a springboard for progression; training and accreditation of existing workers who are already fully competent in their jobs should be delivered separately; apprenticeships should be focused on the outcome: clearly setting out what apprentices should know and be able to do at the end of their apprenticeship; apprenticeships will move to a final “holistic” test that has the full confidence of employers; and all apprentices will work towards a Level 2 qualification either through GCSEs or functional skills in English and maths from August 2014, if they have not already achieved this.

HAIRCLIPS CHILDCARE SCHEME

The government in March announced plans to allow parents to claim back 20 per cent of childcare costs for children up to the age of five years old. Under the scheme, for every 80p paid into an online childcare voucher account, it has pledged to put in 20p, up to an annual limit of £1,200 for each child.

NAMED AND SHAMED A Liverpool hairdresser was “named and shamed” by the government in February for not paying his taxes. HM Revenue & Customs named Joseph Tyrrell, who is not an NHF member, as one of nine “deliberate tax defaulters”, fining him more than £17,000.

RTI EXTENSION

HM Revenue & Customs has given companies employing fewer than 50 people and which pay weekly or more frequently, a further six months to become compliant with its new Real Time Information (RTI) payroll regime. The new system, whereby firms report PAYE information “in real time” kicked off in April, but until October 5 such small firms can still send information in by the date of their regular payroll run, although no later than the end of the tax month, it said.

‘TAX ONLINE’ CALL

A leading retail boss has called for online shops to be taxed at a higher rate than their “bricks and mortar” counterparts as a way to help the high street. Ian Cheshire, group chief executive of Kingfisher, which owns DIY chain B&Q, and chairman of the British Retail Consortium, in March described the current tax system as “Victorian”, arguing that, while people and space were taxed heavily, digital sales generally were not.

MISSED MARKETING

Micro businesses such as hairdressers, plumbers and florists are among those most guilty of neglecting marketing, according to research by consultancy Pitney Bowes and the Centre for Economics and Business Research. Small businesses lost up to £122bn as a result, with many doing only a third of the marketing they potentially could do.

NEWS

How parking rules are devastating high streets – and hairdressing Exclusive The government’s move in February to launch a Future High Streets Forum to “better understand the competition town centres across the country face and to drive forward new ideas and policies” is, arguably, good news for high street salons.

As local growth minister Mark Prisk put it: “It is clear that our high streets will need to change to prosper. There is already great work being done across the country to revitalise the town centres, but it needs to spread further faster. The Future High Streets Forum will help us do that.”

The forum will work to bring together businesses, councils, retailers and MARK PRISK: REVITALISATION property experts to help communities rejuvenate high streets, he added.

But salons might be forgiven for feeling a sense of déjà vu about this.

After all, it was only last year that the government set out a series of actions in response to the review of the high street carried out by retail trouble-shooter Mary Portas, which the NHF fed into at length (SalonFocus, March/April 2012).

The government has stressed the forum will be working to build on that work, in particular advising the country’s 27 “Portas pilot” towns (which includes Bedford, where NHF head office is located) as well as the 330 “Town Team Partners” that grew out of that review.

The forum is looking at five main areas: • promoting parking solutions and good practice to help high streets attract more visitors; • making it easier for redundant empty spaces to be used as “popup shops” to bring new business on to high streets; • allowing commercial landlords to turn part of a building into a residential property to bring

PAGE 8 SALONFOCUS MAY/JUNE 2013

more people into town centres; reinforcing “town centre first” planning rules; and • rolling out pop-up shops across the 330 Town Team Partner high streets.

What our exclusive members’ survey has shown very clearly, however, is that, while there are many waves battering high streets – especially the issue of shoppers going online – parking is a particular thorn under the skin for salons.

The online poll attracted 143 salon owners in a matter of days, indicative of the strength of feeling on the issue. It was also picked up strongly on the NHF’s Facebook page (see @nhfederation on page 34).

A whopping 83 per cent agreed parking charges or restrictions were an issue for their clients.

A similarly high number – more than three quarters – conceded they had lost trade as a result.

When it came to quantifying how much, nearly a third – 30 per cent – estimated the damage as being between six to 10 per cent. A further 18 per cent •

reckoned it could be as high as 20 per cent, while more than a quarter – 27 per cent – felt it was more even than this.

To put this into perspective, six out of 10 salons in our poll have lost 10 per cent or more of their trade because of car parking restrictions, with the vast majority of the rest still suffering a six to 10 per cent loss.

Possibly unsurprisingly, an almost unanimous 93 per cent blamed much of the drift towards out-of-town shopping centres on the fact high streets are now so hard to get to and park within.

When it came to solutions, salons were, again, pretty clear on what they wanted.

Respondents were allowed to tick as many options as they liked, which is why the responses total more than 100 per cent.

The top solution was felt to be more free parking zones, followed by cheaper parking and simply more parking options for shoppers generally. Also popular were setting aside more times when parking restrictions are lifted, and the argument that towns should be encouraged to

Are parking charges or restrictions an issue for your salon clients? percentage Yes

82.8%

No

15.7%

Don’t know

1.5%

What would you like to be done about it? percentage Councils to be given more freedom to decide on charges or restrictions

28.6%

More free parking zones

72.9%

More parking generally

60.2%

Less zealous enforcement

46.6%

Cheaper parking

63.9%

More times when parking restrictions are lifted

54.1%

More pedestrianisation

13.5%

Better planning of traffic flow

27.8%

Towns being encouraged to scrap parking charges all together

58.6%

NEWS scrap parking charges altogether.

Intriguingly, the least popular option was more pedestrianisation, with just 13 per cent of our salon owners believing that would help.

The situation has got so bad in some areas that salons are sometimes taking matters into their own hands.

For example, Andy Blackwell, a barber in Liskeard, Cornwall, recently used a megaphone to warn motorists of traffic wardens.

Another salon owner, Marc Daniel of Marc Daniel Hairdressing in Camberley, Surrey, complained to SalonFocus he was only servicing 100-120 clients a week compared with 300 a decade ago.

Marc blamed a combination of redevelopment in the town, a 60 per cent reduction in car-parking spaces and a new focus on the night-time economy of restaurants and cinema.

“I have told the council they should give us two hours free parking but they don’t listen even though I have got a 5,000-strong petition together.

It’s a combination of not enough, and too expensive, car parking,” he told SalonFocus.

The view of the industry has been backed by Lee Manning, president of the Association of Business Recovery Specialists and a partner in the restructuring services division of accountancy firm Deloitte, who has

called for the end of “stupid” parking rules that drive people away.

Lee told SalonFocus parking regimes needed to become more “intelligent”, arguing it was one thing having parking meters and people to police car parks, but another having revolving cameras high on poles, as some towns now did, that led to motorists being fined even if they stopped momentarily.

The Local Government Association told SalonFocus councils were doing their best to strike a balance between charges that would deter commuters from clogging up high streets while not chasing away shoppers.

“Sometimes people are up in arms about parking charges while others like them because they create less congestion on their streets,” said a spokesperson.

• Surviving on the high street, page 16

Our respondents were given the opportunity to add their comments.

This is what they said:

“

Where we are (in Eastbourne), parking is restricted to two hours unless you park in a multi-storey or, in winter, along the seafront. But most appointments in our salon are one to three hours, so clients do not have time to do other things or have to leave to feed a meter. Then the multi-storey car parks close too early and are poorly lit so female clients don’t like using them.

”

“

Councils in this country have brought in more and more parking restrictions.

They are using it as a ‘cash cow’ and don’t seem to care about the adverse effect this has on businesses and the fact more and more people will go to out-of-town centres.

”

“ ” “ ” “

In our high street a one-way system and ‘herring bone’ parking would treble the amount of free on-road parking.

How about free two hours parking at lunchtime, like in France?!! It would encourage trade.

MARC DANIEL: PETITION

Do you feel you have lost trade because of parking restrictions or charges? percentage Yes

78.5%

No

14.8%

Don’t know

6.7%

If you do feel you have lost trade - how much? percentage <5%

10.1%

6-10%

30.3%

11-15%

14.7%

16-20%

18.3%

>20%

26.6%

Do parking restrictions or charges put high streets at a disadvantage to out-of-town shopping centres? percentage Yes

92.5%

No

2.2%

Don’t know

5.2%

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What salons said

Limits on town centre parking need to be reduced. We have a large car park directly opposite our salon, which is ideal for customer parking. However there is a time restriction of two hours, which restricts clients’ appointment times. For example, a client visiting for a colour, cut and finish, taking two-and-a-half hours would receive a parking fine! Also staff parking is incredibly difficult, especially for those who work shifts and don’t arrive until 11.30am.

” “

If clients are having a colour/foils etc, many a time they have to nip out to move the car with wet hair or half done. I have even had clients say ‘oh I won’t bother having a blow dry’, so saving them but losing me money – so more extended or relaxed parking would be a great asset.

“

” ”

To bring life back to the high street parking MUST be free.

MAY/JUNE 2013 SALONFOCUS PAGE 9

NEWS

Slow but steady expansion for Regis’s Tesco format

BEAUTY BY REGIS: OPENINGS

Two years on, the partnership formed between Regis and Tesco to develop a supermarket-based hair and beauty chain has fallen short of initial predictions, yet the hairdressing and beauty giant has expressed itself well satisfied with progress so far.

NHF member Regis linked with Tesco early in 2011 to pilot a six-salon hair and beauty format, with an initial aspiration

to develop a 70-strong chain (Salon Focus, March/April 2011).

That hasn’t happened, UK managing director Jackie Lang conceded to SalonFocus, and there are currently 20 Hair & Beauty by Regis and Beauty

by Regis salons in Tesco outlets, with a further 15 planned over the next 18 months.

Nevertheless Jackie emphasised the company was “extremely happy” with progress made so far and its “strengthening relationship” with the supermarket group.

“We are committed to building the brand together. We have a mixture of fullservice hair and beauty salons, and nail and brow bars,” she added.

The reason for the slightly slower rollout was simply that both chains wanted to get the concept right, she stressed.

“We are committed to offering the best concept and most relevant services for the Tesco environment and customer so we have taken the time since launching to learn, develop and hone the business model.

“We are constantly tweaking and developing our concept and service to ensure we offer what the target customer wants,” Jackie added.

But Jackie also confirmed Regis

would not be averse to working with other supermarket chains on similar formats.

“We are always looking for, and are open to, other strategic partners,” she said.

A Tesco JACKIE LANG: spokesperson added: ‘EXTREMELY HAPPY’ “Our salons and the services we offer are evolving all the time. We’ve recently introduced tanning services to some of our salons and have also extended the range of professional products that we offer. We’re also excited to currently be trialling a Leo Bancroft blow-dry bar in selected salons, alongside a new range of hair products, exclusive to Tesco.”

The Leo Bancroft blow-dry bar has been tested at the Sandhurst Extra supermarket in Berkshire and Tesco said it hoped to roll out the trial out to further outlets.

“Overall the beauty services have proved popular with our customers and we plan to extend the Tesco beauty concept, as well as the treatments that we offer, to more stores in the future,” the spokesperson said.

Spanish chain bullish despite delayed roll-out

MARCO ALDANY: ON TRACK

PAGE 10 SALONFOCUS MAY/JUNE 2013

Marco Aldany, the Spanish hairdressing giant that arrived on British shores last year (SalonFocus, March/April 2012), has flagged up “a massive roll-out” process that could see it establish 60 salons within five years plus launch into franchising by the end of this year.

The group, which has 400 hair and beauty salons in 11 counties, has opened four company-owned salons in the UK since last June, in west London and Harrow, Middlesex, and two in Croydon and Sutton in Surrey, a slower expansion programme than originally intended.

But UK chief executive Joaquin Lopez-Chicheri, in an exclusive interview

with SalonFocus, was adamant the group’s ambitious plans were still on track.

“We believe that, over a five-year period, the average opening speed will be as expected,” he said.

Joaquin said he hoped a new UK headquarters in Great Windmill Street in London’s Soho, which would include a training academy, would open around this month.

Another seven salons are anticipated to open this year. “It is a massive rollout based on the success of our initial six openings – even more striking considering the state of the economy in the UK,” said Joaquin.

NEWS

Housing association opens ‘old age’ salons One of the leading housing associations in London and the south east of England is considering rolling out dedicated salons for the elderly.

Catalyst Housing runs 15 sheltered housing schemes and has already opened two salons, one in its Oak Tree House development in Reading, Berkshire, which was purpose-built as part of a new property and, most recently, in a converted guest room at Evelyn Fox Court, in North Kensington, west London.

Joy Smith, the brains behind the Evelyn Fox Court salon, told SalonFocus she now planned to hold an information day during the spring to share the experience with other sheltered housing providers interested in opening salons.

She said the provision of hairdressing and nail clipping for the elderly in sheltered housing and for other elderly people in the local community played an essential role in their wellbeing.

MOVERS&GROOVERS WELL DONE SIMON

YORKSHIRE STALWART Congratulations to NHF member Simon Webster Hair, of Gardner Street, Brighton, which won not one but three places in last month’s L’Oréal Colour Trophy 2013.

The event took place at the Plaza Hotel in London on Wednesday April 3 and the salon entered three of its five stylists: Simon himself for the L’Oréal Colour Trophy Award, Phil Gilbert for Men’s Image Award and Max Backshell for the Young Colourist Award. The small independent salon only opened in April last year. The grand final of the competition takes place on June 3 at the Grosvenor House Hotel in London.

HBSA CHANGE

CATALYST SALON: WELLBEING

“It’s not just about having hair and nails done. It’s about meeting new people and communicating. It brings them friends and gets them out of depression. I would think a lot of sheltered housing units would jump at this opportunity. There’s a market for it,” she said.

Joy said the Evelyn Fox Court salon was run by two self-employed women and opened four days a week. Appointments could be made outside of those days on request.

Pricing, she added, was based on recommendations from Age UK, with prices ranging from £8 for a gentleman’s cut to £28 for a perm and from £5 for an upper-lip wax to £15 for a full leg wax.

“Hairdressers do this because they love what they are doing and like to provide the care. They get something from it, giving a service that’s worthwhile,” said Joy. Forty per cent of the money made by the business went to the residents’ fund for social activities. The remainder went to the hairdressing and beauty staff.

SalonFocus asked The Freelance Hair & Beauty Federation if this sort of arrangement was viable for self-employed hairdressers.

Director Sheila Abrahams said: “I would say old age homes and sheltered housing are a good business opportunity if you look at the situation, think it through and make it work for both parties.”

But she added residents should not expect it to be a cheaper service.

“You pay a fair rate for a good job,” Sheila said.

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hairdressing training in an area of the capital that suffered badly in the riots of 2011.

Mike Patey, president of the Hairdressing and Beauty Suppliers Association, has taken on the new role of general manager at the organisation. His appointment follows the retirement of chief executive David Macklin.

CHARITY RUN

Celebrity hairdresser Andrew Barton has made a Yorkshire Patron, joining the likes of stalwart Yorkshiremen Sir Michael Parkinson, Sir Patrick Stewart and David Hockney.

The award, made by the tourism agency Welcome to Yorkshire, is to celebrate high-profile Yorkshiremen and women.

CLIPSO DISPLAY

Darren Fowler, international creative director for the Clipso Salon Group, together with members of the group’s session team created a series of looks ranging from sleek and groomed styles to 40s “exaggerated glamour” for the Ziad Ghanem AW13 Show held at London’s Freemason’s Halls in February. Darren was joined by Loretta KaramWhalley, master hair designer at Clipso London.

STEVENS ON SHOW

Well done to Jordan Macefield, a trainee at Bristol’s Seanhanna salon, who ran 13.1 miles in the Bath Half Marathon in March in the very respectable time of one hour 32 minutes. More importantly, Jordan also raised £200 for the Sue Ryder charity in the process.

LONDON TRAINING Salon chain the Francesco Group has launched a new training concept, The Salon, as part of an ongoing partnership with The College of Haringey, Enfield and North East London. The Salon offers young people top-end

Award-winning celebrity hairdresser Jamie Stevens was due to come to Cardiff in April to give two masterclasses at Salon Cymru, Wales’ top showcase of hairdressing and beauty skills. Jamie, who is hairdresser-in-residence on The X Factor, was set to give masterclasses on barbering and ladies’ hairstyles at the SWALEC Stadium on April 28.

CLARIFICATION

An image was mis-credited in Federation Focus of the March/ April edition of SalonFocus. The image, within Regional roundup on page 31, was credited to Samuel Habte but should in fact have been credited to Simon Kibbler. Our apologies for any confusion.

MAY/JUNE 2013 SALONFOCUS PAGE 11

NEWS

NHF slams October rise in minimum wage The National Hairdressers’ Federation has expressed dismay that the national minimum wage (NMW) will, yet again, rise from this autumn.

The adult NMW will increase by 12p an hour to £6.31 from October, the government said in April. The rates for 18- to 20-year-olds and 16- to 17-yearolds will also rise, after being left unchanged last year.

The apprentices’ NMW will go up, too, by 3p to £2.68 an hour, despite the Low Pay Commission, which recommends NMW rates, calling for this to be frozen for a year.

Business secretary Vince Cable justified the government’s decision to ignore the commission by arguing “there is worrying evidence that a significant number of employers are not paying apprentices the relevant minimum wage rate”.

He also indicated the government was looking at “a series of tough new measures to ensure we tackle noncompliance VINCE CABLE: issues across the ENFORCEMENT board”.

While the detail of these measures was unclear as SalonFocus went to press, hairdressing as an industry could well be in the government’s sights.

Research by the Department for Business, Innovation and Skills last year suggested nearly half of hairdressing apprentices were being paid less than the NMW, with hairdressing by far the worst industry for flouting low-pay legislation (SalonFocus, March/April 2012).

The government also last year began “naming and shaming” firms that infringe the wage, something the NHF has long expressed disquiet about, arguing that, while employers who deliberately break the rules should be brought to book, the complexity of administering the wage does mean it can be easy to make

PAGE 12 SALONFOCUS MAY/JUNE 2013

an honest mistake, especially for smaller employers.

NHF president Mark Coray said the government’s decision to ignore the commission was particularly galling.

“In our evidence to the Low Pay MARK CORAY: Commission the DISAPPOINTING NHF has consistently highlighted how increasing the adult NMW year after year after year is eroding pay differentials between senior and junior stylists. Pay rates are under pressure on the high street and this move does not help,” he explained.

“The government’s insistence on increasing the apprentices’ wage is deeply disappointing. The clear evidence we have from our members is that the way it is structured – with over-19s only getting it for the first year of training and then moving on to the adult rate – is deterring salons from taking on apprentices, especially older trainees, as it is.

“Rather than helping young people, increasing the apprentices’ minimum wage will make it even harder for aspiring hairdressers to get a foot in the door at a time of record youth unemployment,” Mark added.

Members joined Mark in criticising the decision, with one contacting SalonFocus to say she had now decided not to employ an older apprentice specifically because of the apprentice wage going up from October.

Minimum wage rates from October 1: •

Adult rate: £6.31 an hour (up 12p)

•

18- to 20-year-olds: £5.03 an hour (up 5p)

•

16- to 17-year-olds: £3.72 an hour (up 4p)

•

Apprentices’ rate: £2.68 an hour (up 3p)

BEAUTY

SPOTS ONLINE BOOM

More than a third of people who shop online in the UK have bought beauty and personal care products via the internet in the past 12 months, according to research by global strategy consultancy AT Kearney. It predicted this will increase still further, with online beauty sales growing almost four times faster than physical retail.

BOTOX GROWTH

US drug maker Allergan, the company behind Botox, has reported record sales in 2012, with the wrinkle remover still its top selling brand. It reported sales of $5.8bn in 2012 and predicted robust growth again during 2013, to $6.2bn

HABIA COURSE

Industry sector-skills body Habia has launched a new health and safety qualification for salon and spa owners.

The Level 2 Award in Health and Safety for the Salon Environment has been developed in partnership with awarding body VTCT. One-day courses on the award are due to be held during May and June at Habia’s office in Doncaster.

RIHANNA FOR MAC

Beauty brand MAC has teamed up Barbados-born pop superstar Rihanna to create a series of make-up collections, it was announced in February. The first product, a lipstick called RiRi Woo, was due to be launched this month. Four collections are expected to be released this year.

TANNING RECORD

Amy Childs, former star of The Only Way is Essex, helped tanning brand Crazy Angel break the world record in February for the greatest number of simultaneous spray tans performed. Amy joined a team at a spray tanning “camping site” erected at the Professional Beauty show.

SLOWER EXPANSION

The UK ambitions of a Spanish beauty chain appear to have been dramatically scaled back. No+Vello has parted ways with former UK managing director Juan Cardenal, who held the master franchise, and has taken hands-on control of the business. In March last year Juan told SalonFocus the chain planned to open 200 by the end of the year. In fact, it currently only has five, with a sixth poised to open in Wembley, but a total of 35 planned for this year.

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NEWS

Skin doctors call for tougher regulation of sunbeds

By Andrew Don

Hairdressing and beauty salons offering sunbeds should be subject to a much tougher inspection and licensing regime, the British Association of Dermatologists (BAD) has said, and those knowingly allowing under-18s to use their facilities should be summarily shut down.

BAD’s call has come after a Cancer Research UKcommissioned study in the Journal of Public Health earlier this year claimed to show 15-18-year-olds were ignoring risks of skin cancer because they felt “healthier” and “more confident” after having treatments.

Crucially, it found evidence salons were failing to check users were of the legal age, arguing that in some areas of the UK half of all 15-17-year-old girls were using sunbeds on a regular basis.

It has been illegal for salons and other operators knowingly to allow under18s to use sunbeds and not to have undertaken reasonable steps to establish age since the Sunbeds (Regulation) Act 2010 came into force in April 2011, following in the footsteps of Scotland, which legislated two years earlier.

The NHF’s own 13-strong governing council voted in May 2008 to advise salons not to let this age group use sunbeds because of the risk of overexposure of young skin to ultraviolet rays and because it felt the industry should be doing the right thing (SalonFocus, July/ August 2008).

Kimberley Carter, a BRANDON COOK: spokeswoman for GUIDANCE BAD, said: “The ability to effectively close down salons that do not comply with safety or sunbed usage regulations would be a very beneficial step towards making sunbeds ‘safer’. this would be possible through a UK-wide licensing scheme.”

While sunbed operators that flout regulations, especially the under-18 rule,

PAGE 14 SALONFOCUS MAY/JUNE 2013

can be fined up to £20,000, the current inspection regime is not tough enough, BAD has argued. To that end it has said it would like to see a licence put in place that would require salons to show that: • the restriction for under-18s is being enforced; • facilities are supervised at all times by trained staff; • information regarding possible health risks is clearly displayed; • there is a set limit on the number of sessions to prevent overexposure; • there are no coin-operated machines; and • there is clear evidence equipment has been properly maintained and complies with British safety standards.

As well as fines it said councils should have the power to revoke licences and close businesses if necessary.

BAD has also called for tougher training requirements, suggesting a stricter regime currently in place in Wales should be extended across the UK. Salons in Wales offering sunbeds have to ensure staff have adequate training to enable them to: • verify a person is at least 18; • help a client assess their skin type and level of risk; • provide guidance on a sunbed’s use, based on skin type and any skin conditions or other relevant medical conditions disclosed to them; • advise customers on safe operation and provide adequate health information; and • ensure protective eyewear is provided and used.

Brandon Cook, lead offer of age-restricted sales for the Trading Standards Institute, said salons in England did not have to ask for identification but it was implicit they had to intervene if there was a doubt about age.

“Trading standards officers and environmental health offices will have been putting out guidance to say they should be asking for identification and do something to ensure the service is not provided to those who are under age,” he said Catherine Thomson, head of statistical information at Cancer Research UK, said: “Introducing the legislation banning sunbed use by under-18s was vital to protect younger people from the harmful effects of UV. But proper supervision in salons is essential to combat the determination of teenagers to get round laws that are there for their own protection.”

Gary Lipman, chairman of The Sunbed Association, told SalonFocus it would support “any reasonable requirement that would ensure compliance with the law”.

But he stressed many of its members already sought age identification even where it was not a requirement.

He also GARY LIPMAN: insisted underCOMPLIANCE age use of sunbeds had never been a widespread problem and branded the Cancer Research UK study “lightweight”.

The study’s claim that half of underage girls in some parts of the country were using sunbeds on a regular basis was “completely disingenuous”, he added.

A separate study by Cancer Research UK has concluded that nearly half (43 per cent) of people who have used sunbeds are also using anti-ageing products.

This compared with a fifth of those who had not used a sunbed, it added.

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COLUMN

Surviving on the high street Comet, Jessops, Blockbuster, HMV – the past few months have been dominated by spectacular bigname retail collapses.

So where does the high street go from here? Lee Manning looks at what the future holds.

The UK high street is experiencing wholesale changes, and the era of the traditional high street is sadly passing.

A string of high-profile retail administrations over the past few months, including Comet, HMV, Jessops and Blockbuster has hammered this message home.

Equally worryingly, the number of stores closed by high street chains has soared over the past 12 months.

According to the Local Data Company there were a total of 7,337 store closures in 2012, including 1,281 in London, 353 in Scotland and 213 in Wales.

These statistics are, of course, stark, and highlight the two overarching phenomena threatening the high street.

First, technology and the internet is Lee Manning is challenging the high president of R3, street beyond what the Association of Business Recovery most shops have been able to cope with.

Specialists, a Second, the significant partner in the expansion of out-ofrestructuring town shopping centres services division of has made it almost accountancy firm Deloitte, and was a impossible for local high joint administrator streets to compete. for Blockbuster The internet is

PAGE 16 SALONFOCUS MAY/JUNE 2013

changing how people shop, and want to shop. The delivery method of many high-street products has been challenged fundamentally by technology; the demand for physical goods purchased from a high street has plummeted as people can buy more easily and cheaply online, with hairdressing and coffee shops probably the few exceptions.

When it comes to out-of-town, one of the key reasons why the high street has struggled to compete is the cost of parking. Restrictive parking regimes and stringent ticketing practices have made popping down to the high street in a relaxed way a thing of the past.

Thirty years ago the average high street would have had butchers, greengrocers, off-licences, chemists and a range of clothing and fashion retailers.

But now many “anchor” retailers with financial clout have moved out, in turn making high streets less attractive and creating a vicious cycle of decline.

Computer games, cards and clothes shops have been replaced by payday loan providers, pound shops and bookmakers.

So, despite these challenges, how can high street retailers still prosper?

Adaptability

First, it’s becoming even more imperative for retailers to keep on their toes. Retailers need to be nimble and innovative and, very simply, alive and adaptable to what their customers want.

All too often I see management sticking to what they know, to what was once a successful formula, despite all the evidence telling them they need to change.

Second, as shopping habits change, so too must retailers. This means multichannel buying – not just static physical or internet buying but innovations such as mobile shopping too.

Retailers need to recognise online does not have to be completely divorced from bricks and mortar. “Click and collect” has given a lifeline to stores such as Argos. John Lewis has excelled in using technology to get people in their shops.

Finally, shops that remain on a high street may in fact be able to benefit from the decline and closure of others.

Despite the headline cases, corporate insolvency rates remain historically low, especially when contrasted with previous recessions and periods of recovery.

Low insolvency rates are good for employment, which is a key concern following the many retail administrations.

Business cycle However, a healthy economy requires activity at both ends of the economic cycle – it needs business growth and expansion, as well as the recycling of capital following business failure, and at the moment this just isn’t happening.

Another worry is the number of retailers that appear to be clinging on by their finger-tips. Our research has found there are 160,000 “zombie” businesses in the UK; that is businesses only able to pay the interest on their debt but not the debt itself.

These are being kept alive by the forbearance of banks, other key creditors and favourable interest rates. In fact one in ten retailers is currently a “zombie”.

At the end of the previous recession, an increase in corporate insolvency did clear the ground for a quicker return to growth; however this hasn’t happened this time.

We do not need to “cull” the zombies all at once, but we do need to be honest and realistic in establishing a “tipping point” where resuscitation is impossible.

It may be, therefore, that our high streets in the short term will experience more pain before the picture starts to improve.

For those retailers that survive – and hairdressing as a sector may in time become one of the long-term “anchors” of the physical high street – the high street is going to be very different. It’s going to be multi-channel, fast-moving and constantly challenging. But it will be survivable.

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BUSINESS FOCUS

Work your bank harder Nearly three quarters of small businesses never or rarely change their bank. But regularly reviewing what’s on offer – and being prepared to switch your business account – could massively benefit your business, advises Sarina Saul-Hassam.

Having a proactive relationship, a partnership really, with your bank is absolutely vital for any small business, especially in a challenging trading climate.

Too often a small business owner will get started, get their business bank account up and running and then leave it at that. This can be especially the case if the business is ticking along nicely; there may be a sense of “why do I need to bother?”.

Yet we encourage our business banking customers to speak to us on a regular basis and, ideally, carry out an annual review of their banking.

Why? Because, that way you’ll always

Sarina Saul-Hassam is a regional head of business banking at HSBC

be sure you’re receiving the best level of service, expertise and value for money.

Opening doors

On top of that getting “face time” with your bank helps build an important relationship and potentially opens the door to discussing alternative funding options or additional facilities to help you expand.

A lot of small businesses, we find nowadays, assume banks are not lending to SMEs, which is just not the case. In 2012, for example, we lent £12.3bn to small and medium-sized enterprises, an increase of three per cent on the previous year.

The big concern with switching naturally tends to be the worry it’s going to result in loads of hassle and paperwork or, at worst, interruption to your business.

But switching accounts is much more seamless than it once was; at HSBC for example it can often be done in as little as an hour to an hour-and-a-half. Generally transferring direct debits and standing orders will take up to 14 days.

We, like most business account providers, have a dedicated “switching” team. We also offer a named relationship manager as the business owner’s main point of contact, which helps immensely.

Again, some banks may offer deals to encourage switching, in our case up to six months’ free transactions.

Depending on the size and complexity of the business, something like this can be quite a significant saving.

So, especially if you’re quite a cash-based, heavily transactional business – as many salons are – it’s worth looking at the sort of benefit deals such as these might offer.

Every business, of course, is going to be different and no one realistically expects small business owners to switch banks all the time. But the key message is that it makes real business sense to be proactive about your banking.

Questions to ask…

Market researcher YouGov last year found nearly three quarters (73 per cent) of SMEs “rarely” or “never” searched for a better banking provider.

Just three per cent looked for better offers all year round.

More worrying, around 15% said they had tried to switch provider in the past two years, but only eight per cent had succeeded. Of those, only 12% said they had found the process “easy and painless”.

The British Banking Association recommends you ask the following questions when researching whether to move to a new bank: •

How to cut your banking costs According to business financial services company CashFlows UK, businesses spend more than £2.3bn every year on banking charges. As a result, insurance company Simply Business has suggested five ways to get the most out of your account: • • • • •

make sure you understand the charges, especially those associated with transactions you carry out most frequently; plan ahead to reduce the number of deposits and withdrawals and consider holding on to cash rather than immediately depositing it; automate through electronic payments, as charges for BACS or Faster Payments tend to be lower; stay in credit (as much as you can) by drawing up accurate cashflow forecasts; and don’t be scared to switch providers, especially if a bank is offering an introductory period of “free transactions”.

PAGE 22 SALONFOCUS MAY/JUNE 2013

• • • • • •

What will be the rate of interest and how does this compare with my current bank?

What will it offer in regards to overdrafts and how much will I be charged for going into the red?

What loans are on offer, and what does the small print say?

Will I be able to get free access to my money from other banks’ cash machines?

How much will transactions cost, is there any set free amount each month?

How good is it at dealing with complaints?

What is its internet banking service like?

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MARCH/APRIL 2013 SALONFOCUS PAGE 23

BUSINESS FOCUS

Results by payment

PAYMENT PROCESSING: NEEDS TO BE PAINLESS

Paying for anything is always the most “painful” part of any transaction, however much a client may have enjoyed their experience, and so any retailer has to try and make this process as simple and straightforward as possible.

This is one of the reasons why more and more salons are recognising the importance of having an integrated payment system within their salon management software.

Most salon systems these days have the ability to connect to various credit card systems and allow a client to choose their preferred method of payment; cash is becoming less and less the first choice.

Not only is a card a far safer method of payment now that Chip ‘n’ PIN is in place, it is also the preferred method of most retailers, as it reduces the risk of having large amounts of cash within a business and the transfer into the bank is completely automated and secure.

Any good salon software system will have the ability to set up which payment methods Robert Miles it takes in terms of cash, is founder of cheque or credit card.

Premier Software It will also be able to Solutions, the split down the different NHF’s preferred types of credit card the supplier of salonspecific software business takes. This enables a salon to have

PAGE 24 SALONFOCUS MAY/JUNE 2013

The explosion in recent years in the use of smartphones and tablets is also leading to a revolution in payment processing technology and software, writes Robert Miles.

a much better understanding of what charges it is incurring, and so complete the end-of-day cashing-up process more accurately.

Most salons, of course, now also have a website and many have added some form of e-commerce to sell stock or gift vouchers via mail order.

Again, good payment processing software is critical here. Having the ability to split payment methods allows a salon to keep track of what percentage of takings has come from one source or the other and so give a much better idea of where the business is growing.

The other huge change has been the phenomenal growth in the past few years in people using mobile technologies.

Most people now have a smart phone with the ability to use apps or connect to the internet wherever they are.

This means they are continually connected, to Facebook, Twitter and the latest deals, but also that they can access other services such as their bank or utility company simply by taking out their phone.

Payment from the chair Technology companies have seen mobiles as a huge potential market for payment technologies, from the nowstandard contactless technologies on most credit cards through to a provider such as Barclaycard now sending out mini credit cards that you stick to the back of your smart phone.

Retailers are in turn embracing and catching on to this growth in mobile payments; over the past 12 months alone several companies have come to market with very simple devices that plug into a smartphone or tablet to allow the retailer to take payments almost anywhere within their property or even when they are on the move Companies such as www.izettle.com and www.sumup.co.uk now operate in the UK and provide a very simple method of taking a credit card transaction with a

mobile phone (SalonFocus, September/ October 2012).

These have significantly reduced the cost and hassle of taking credit card payments within a salon.

A salon owner simply goes to the website, signs up the relevant details, is sent a card reader and is then up and running.

This allows smaller operators to have the ability to take card payments while also allowing larger salons even to take payment while the client is still in the chair.

It will not be long before these services are fully integrated into salon management systems. When this happens it will not be that far-fetched to see a salon where every member of staff has the ability to access not just the appointment diary and client details via their mobile phone but also to take credit card payments anywhere within the salon.

If you read nothing else read this…

•

Cash is no longer king, so good payment software is vital

•

E-commerce means salons need to be able to split payment processing

•

Paying via mobile is becoming, and will become, increasingly important

MOBILE PAYMENT: SIMPLE

TOOLBOX:EQUIPMENT

Between a rock and a good place More and more salons are extending into selling jewellery as an extra revenue stream. Ashish Kohli explains how to add a little sparkle to your offer.

Hairdressing has always been about much more than hair; it is about how to make people feel and look good. Nowadays too, of course, many salons extend into many different areas: retail, beauty, cosmetic services, health, lifestyle and so on.

Against that backdrop, extending into jewellery is not that big a “leap”. Over the past year I’ve seen a sharp increase in demand for jewellery stands from hair salons, a trend I feel it is important NHF members become aware of.

Fashion jewellery and accessories can be a really cost-effective way to increase profits without taking up a huge amount of space in the salon. My Amber Jewellery stands can now be found in more than 500 hair salons across the UK.

Eye-catching

A jewellery range, almost without trying, can be eye-catching and attract the interest of a captive audience while the client is waiting for their appointment.

Cost, inevitably, is a huge factor both for stockists and end consumers, so catering for a low budget is essential. The cost of setting up a jewellery range in a salon is around £100, depending on the size of the stand.

Our range encompasses more than 2,000 on-trend items, meaning salons can “pick and mix”. It’s also, of course,

JEWELLERY: USEFUL BUSINESS EXTENSION

www.nhf.info

possible to stock up to anticipate demand for certain services, such as tiaras and diamante pieces for bridal or prom clients.

Alongside the jewellery, you could use the stand for bags, hair accessories, scarves and umbrellas – particularly useful if this summer is as wet as last year!

Price flexibility

In terms of a price point, we don’t provide a specific RRP and give salons flexibility to decide what they want to charge. The cost price is low – with some items under £2 to £3 – so there is room to make big margins. We recommend a minimum of 100 per cent on the cost.

Quite often, we find owners price to reflect their establishment and clientele. To this end the jewellery can be positioned either as a premium or a budget option according to the likely spending power and appetite of your clients and average price of a cut.

Stands come in a variety of sizes, starting from counter busts that sit on the edge of a counter or reception desk. A floor stand will be around 1.7m (5.5 feet) high by 0.9m (three feet) wide.

In terms of installation, it should be a job of minutes to get a stand up and into position – so it can be done outside opening hours with the minimum of disruption.

Then it’s really up to the salon owner in terms of how they decorate, display and promote the stand. A lot of the feedback we have had is that crosspromotion can work well.

So, for example, offering a free hair accessory for any client having their hair styled for an event, or a free jewellery set on their third cut to encourage repeat business and so on. Other feedback from salon owners is that clients often buy off the stand on impulse – it’s a “treat” purchase to complete

their new look.

Finally, what difference is it going to make to your turnover?

Obviously, this is going to vary widely from salon to salon.

Ashish Kohli is managing But the fact it’s director at Amber a low-cost, lowJewellery overhead business extension means jewellery, to my mind, has the potential quickly to contribute to revenues.

Where time and effort has been spent to ensure a stand is elegantly displayed, where it reflects and complements the wider salon brand and where it is effectively and proactively crosspromoted, some salons have reported jewellery now accounting for up to 20 per cent of their revenue.

If you read nothing else read this…

•

Jewellery can be a low-cost revenue extension for salons

•

It can be positioned at either a premium or budget price point

•

Cross-marketing can be effective, and it will often be an impulse buy

•

Some salons report sales accounting for 20 per cent

MAY/JUNE 2013 SALONFOCUS PAGE 25

TOOLBOX: RELATIONSHIPS

Opening the door to your colour house

FUDGE: OPPORTUNITIES

It can pay to turn a client/supplier relationship with your colour house into a much deeper business partnership. SalonFocus investigates.

The relationship between a salon owner and his or her colour house will, at one level, always be a commercial one: that of supplier and customer.

Like all business relationships it won’t (or shouldn’t) be a one-way street: a colour house’s product or brand will help to give a salon its identity and reputation but, in turn, the reputation and ability of a salon will be the way a professional colour brand reaches and resonates with the public.

Yet in a tough climate it is important for salon owners to be recognising that, if the main relationship they have with their colour house is a sales-based supplier/customer one, they may only be skimming the surface of what’s on offer.

Colour houses, increasingly these days, are a “resource” that salons can lean on, and which can offer businesses a whole lot more than just product or access to brands.

As Rick Farrant, commercial director at Herb UK, the company behind Organic Colour Systems (OCS), points out: “We can offer advice on business, advertising, marketing and so on, as well as product advice.

We can help with strategies to create word-of-mouth loyalty, such as running friends’ evenings.

The key is about generating a buzz without spending vast resources and, where possible, keeping it simple.

“Like most colour houses we run courses but, to be honest, it can be like pulling teeth to get people to attend.

Once they come KARINE JACKSON: they love it, but often RECIPROCAL

PAGE 26 SALONFOCUS MAY/JUNE 2013

KEN PICTON: INNOVATION

they are just not aware they exist. Most hairdressers really do not think about using their colour house to help them run their business,” he adds.

Karine Jackson, owner of London’s Karine Jackson Salon and who uses OCS, agrees: “It’s a great reciprocal relationship as our brands are effectively growing together, and I’ve become synonymous with the colour. It’s a great ‘USP’ for my salon – I stand out because I offer something different.”

“Our major colour house is L’Oréal Professionnel,” says Ken Picton, owner of Ken Picton Salon in Cardiff. “What’s great is they don’t stand still, so are coming up with innovative ideas and colours which allow us as a business to develop as well.

“It’s essential to work with a company that is interested to know what we need as a business, and how they will work on their future plans to benefit our business and customers. For example, LP invests a lot in advertising and marketing, so as a salon you should be tapping into that – can you get showcards to put in your salon, great posters or other POS materials?

“For me, it’s also important it was one of the first to come up with a degree qualification in colour; with it being such a specialist skill it’s fantastic colour technicians can have a qualification,” he adds.

Oliver Peto, creative technical trainer at Fudge, agrees. Obviously, a colour

house needs to be offering salons a broad range of colours and a mixture of permanent and direct dyes. But this should just be the start. “The colour house should always support and educate salons in using the products correctly, as well as opportunities to be part of the brand. At Fudge, for example, we go to our top salons for support at events such as The Brits, photo-shoots and London Fashion Week,” he says.

“The way we can deliver certain things like support and education has changed, we can use online tutorials and feedback through the internet to provide constant support and training worldwide. There’s also a library of information that exists for salons to access when they want to,” he adds.

Ongoing support

Education and ongoing support should be a vital part of the relationship, says Christy Blake, UK education manager for JOICO. “Education should never stop. Once the basics are covered you can move on to the more advanced creative courses.

Most companies also now offer business advice as standard,” she says.

“It is about forming a partnership. In the current climate salon owners need to investigating all avenues open to them,” agrees Herb UK’s Rick.

If you read nothing else read this…

•

Talk to your colour house about what it can offer

•

Colour houses may be able to help with general business development

•

See it as a partnership not just a business relationship

TOOLBOX: TRIED & TESTED

Tried & Tested The product:

Sunjunkie Sunless Bodymist Description: Sunjunkie’s Sunless Bodymist is described as “airbrush tan in a can”. It sprays at a 360o angle “allowing you to create a professional airbrushed salon finish from the comfort of your own home”, says the company. The idea is for the product to be used to enhance or extend tan or simply cover areas that may have faded.

Did it work?

Our testers said: “Yes.” “Of the staff who used it, I can confirm it works as directed.” “Yes, and almost streak-free.”

Would you use it in your salon?

Our testers said: As our testers only ran hair salons, in that context the answer was “no”. But as one tester added, “my staff loved it, and love spray tans”.

Was there anything that stood out, good or bad?

Our testers said: “A nice, natural colour.”

“It produces a good tan look.”

Any other comments?

Our testers said: “I would recommend it.”

“It was very easy to apply.”

HHHH

Tried and Tested overall rating: 4

PAGE 28 SALONFOCUS MAY/JUNE 2013

The NHF’s Tried and Tested panel of top salon owners gives its regular verdict on a range of established and new product and equipment.

How Tried and Tested works:

The SalonFocus Tried and Tested panel is made up of NHF members who are not paid for their opinions. The rating is the opinion of the panel alone. Manufacturers who wish to submit items for testing should contact Tina Beaumont at NHF head office on tina.beaumont@nhf.info. Three samples will normally be required. Being accepted is not a guarantee a review will be published.

The product:

Black and White Genuine Pluko Hair Dressing Pomade Description: Black and White’s Genuine Pluko Hair Dressing Pomade is a versatile styling pomade that “allows you to mould, sculpt and create texture; the perfect product for channelling the ‘Wet Look’”, the company says.

Did it work?

Our testers said: “It is a product that is very versatile and acceptable to both male and female clients”. “Yes we also used it as a barrier cream for our hands; a good wax and quite versatile.” “No.” Would you use it in your salon?

Our testers said: “We use it already.” “We have used it for many years in the salon and it has good retail appeal.” “No.”

Was there anything that stood out, good or bad?

Our testers said: “It is good to work with; you can get any desired result by using the correct amount.” “Excellent.” “It was too greasy.”

Any other general comments Our testers said: “It is a product that should be used as required; using too much gives problems on desired style.”

“The only thing is it has hard to wash out if a lot has been used.” “The product does not come out of the hair.”

HHH

Tried and Tested overall rating: 3.7

The product:

Macadamia Natural Oil Deep Repair Masque Description: Macadamia’s Natural Oil Deep Repair Masque is an “intensely nourishing deep conditioning masque”, says the company. It is formulated from an infusion of Macadamia and Argan oils, alongside Tea Tree and Camomile. A single application after a daily shampoo will “deliver an intense boost”. The product is particularly targeted towards winter-damaged hair, “eliminating the possibility of dryness, brittleness and split ends while infusing shine and locking in moisture to keep hair looking and feeling healthy”, adds the company.

Did it work?

Our testers said: “Yes.” “It certainly gave a fantastic result; one of our clients with an ongoing problem was over the moon with the result.” “Really good, but I’d prefer it in a tube rather than a tub for

ease of use and to prevent wastage.”

Would you use it in your salon?

Our testers said: “Yes.” “It is a product that would be an asset in the salon and I would have no hesitation in using it.”

Was there anything that stood out, either good or bad?

Our testers said: “The aroma is very good and it is very easy to comb through.”

“The fact it is in a tub and you are not able to pump it does make it feel like it could be very wasteful.” “It gave a lovely shine.”

Any other general comments?

Our testers said: “I would recommend it without hesitation.” “Overall a lovely product, as it is nice and thick, but I’d like it in a different package.” “Easy to use.”

HHH H

Tried and Tested overall rating: 4.3

FEDERATION FOCUS

Members urged to check out new benefits The NHF has secured a raft of new benefits for members, as it focuses on offering salon owners even better value for money in the difficult economic climate.

Members will now be able to access discounted private medical and dental healthcare, travel insurance, vehicle recovery, income protection and life and accident insurance through the Hospital and Medical Care Association.

More details on the options available can be found at: www.hmca.co.uk/nhf.htm Another new benefit is a 70 per cent

discount on a subscription to DLT magazines, which publishes Elle, Company, Cosmopolitan and Vogue, among others.

NHF members will be able to agree a pre-selected “salon package”, which will include a spiral magazine rack, protective covers for the magazines and free delivery by secure carrier.

Finally, the NHF has secured a discounted subscription rate for members to Creative Head magazine.

A year’s subscription to the magazine, which includes a regular page of news

From the NEC The key membership activity in the coming months is going to be highlighting the range and scope of benefits that come with being an NHF member, writes membership committee chairman Ian Egerton.

It seems some salon owners join the NHF yet only make use of a limited range of the benefits on offer, often just the Legal Lifeline.

What we need to be focusing on if we want to sustain, and even expand, our membership is two things. First, we IAN EGERTON need to be shouting about the amazing value our existing membership benefits offer, and secondly how we can add even greater value and improve the range of membership benefits. By working with our professional partners and offering a range of business and marketing seminars, we can more easily engage with a broader section of membership. For example, Croner will be running seminars around the country (see story opposite) and will offer tremendous value in addition to what it already offers through the Legal Lifeline. Similarly, I believe we can raise the profile of our artistic teams, Inspire and Barbers’ Elite, motivating and engaging with members as “creative ambassadors” for the NHF around the country.

Almost everyone, understandably, is feeling challenged financially at this time; so we need to be making the argument that joining, and remaining, a member of the NHF will give you greater security in business and a broad range of benefits, that can only be found by being part of the largest group of like-minded salon owners, the NHF. Surely there is no better value for what amounts to just £4.62 per week for the average member! The NHF has so much to offer in terms of networks, business and individual benefits and regional and national activity, but in difficult economic times we need to articulate that much more clearly, emphasising our value and engaging with salon owners on the ground.

This needs to be more than just a priority for the membership committee. It needs to be something individual members are promoting at a local level (by encouraging members to join networking groups or participating in national competitions, attending conference, the new Diamonds Awards and so much more). We as members all know why we are part of the NHF and the great sense of security and community we feel, but we need to share the love. Reach out to your local networking group and discover more! To find out about your local networking group visit www.nhf.info or call head office on 01234 831965.

PAGE 30 SALONFOCUS MAY/JUNE 2013

DLT MAGAZINES: SALON PACKAGE

from the NHF, will be £20 instead of £25.

More details on these and all other NHF membership benefits can be found within the “members’ area” of the NHF’s website, www.nhf.info.

Helsinki medal haul

An NHF-backed art team has walked away with a haul of medals at the Helsinki Hair & Beauty Competition in Finland in March.

The team, which is being supported by the Federation, is an unofficial replacement for the Federation’s former Team GB, which was wound up when the NHF withdrew from OMC in 2012.

The team won three gold medals, two silvers and five bronze, a result described by competition motivator and trainer Stephen Coles as “fantastic”.

The team comprised Steve Clewlow, Rachel McVeigh and Matt Wilson from The Coach House in Wolverhampton and Emma Saxon and Wendy Croall from Stephen Coles Hair Design in Lytham St Annes.

WINNERS: THE TEAM IN ACTION

FEDERATION FOCUS

Legal Lifeline seminars coming to a region near you Croner, operator of the NHF’s Legal Lifeline, will be running a series of seminars around the country during 2013 highlighting how to tackle and manage key salon concerns, such as conduct, absence, redundancy and disciplinary procedures.

But members are being urged to get in touch with their region if they are interested in hearing what Croner has to say – as the itinerary is going to be decided by regions putting themselves forward to head office.

Each region will be invited to host a seminar during the year, with those that express an interest likely to be given priority. The first seminar is due to take place in York in July.

The seminars will examine the most popular calls made by members to the lifeline over the past 12 months and address how salon owners can best

tackle similar issues affecting them or their businesses.

According to Croner, the key employment-related topics were conduct, absence and sickness, terms and conditions, disciplinary procedures and redundancy.

The most common legal calls made by salon owners were in relation to customer complaints and potential personal injury claims (often because of bad colour reactions), self-employed chair renters, post-termination breach of restrictive covenants and disputes with landlords.

In a separate development, plans are underway to develop an NHF Inspire and Barbers’ Elite touring “roadshow” over the course of the next 12 months.

The aim is for each artistic team to circulate around the regions showcasing their work. Details will posted online, at www.nhf.info, ahead of each event.

Diamond Awards categories agreed

This autumn’s Diamond Awards will comprise six categories, it has been agreed.

These will be: Charity; Companion of Honour; Customer Service; New Business; Newcomer; and Photographic.

The awards are due to be held October 6, just ahead of the NHF’s annual conference in Manchester, and are intended to be a celebration of the whole industry, both NHF and non-NHF salons.

Online entry forms are available for the Customer Services, New Business, Newcomer and Photographic categories, which can be accessed at www.nhf.info.

Full details on the awards can also be found on the website, and for specific queries please email events assistant melanie.collins@nhf.info.

Regional round-up The White Rose Networking group held its ever-popular bi-annual dinner in January at York Racecourse.

The event, organised by Glen Jackson and Julio Garcia, gave regional members a chance to rub shoulders with regional NEC representative Mike Thornhill, national vice-president Paul Curry and national president Mark Coray.

The evening was felt to be a great success by all, and plans are underfoot already for next year’s event.

North West Region’s annual Red Rose Championships in Preston in February attracted an excellent crowd, as regional secretary Stephen Coles explained: “I was really pleased with the competition, numbers of competitors and spectators were up on last year, which is really encouraging,” he told SalonFocus.

There were ten categories overall, with the Senior Ladies Championship being won by Emma Saxon from Stephen Coles Hair Design in Lytham

www.nhf.info

St Annes and the Men’s Championship being won by Jonathan Edge from Jonathan Edge, the Hair Shop in Bolton.

London Region invited back, by popular demand, award-winning photographer and hairdresser Desmond Murray for a second personalised photographic session in March.

Bryony Thatcher and Des worked with the small group to produce highquality industry magazine-standard images.

Members who attended the day said they found it inspirational. Mattia Bonora, of The Stress Exchange, said: “It was my first professional shoot. Des was really easy to work with. He helped me with tips and suggestions for my model and styling. I really enjoyed the whole experience.”

Luigi Mortellaro, of Luigi M Hairdressing, agreed: “I really enjoyed our photographic day, I felt that I was rewarded with a fantastic look, we all worked well together.”

And Adam Davison of Tikadi added: “It was a really exciting day. Other team members had participated before and thought the organisation, support and calm nature of the day was excellent. I experienced the same!”

DES MURRAY PHOTO-SHOOT: POPULAR

MAY/JUNE 2013 SALONFOCUS PAGE 31

CASE CONFIDENTIAL

Taming the trolls Basil Long, senior legal consultant at Croner, operator of the NHF’s Legal Lifeline, analyses a real-life call to the helpline and the advice subsequently offered to the salon owner.

In our permanently-connected world online rants are becoming a growing problem for many businesses, especially public-facing service industries such as hairdressing.

As one salon recently found, if a cut isn’t quite what a client wants, the snowball of internet aggression can quickly get out of hand.

There was no problem when the client left – she seemed happy with the style and colour.

But, having uploaded a photo on her Facebook page, a number of less than positive comments made her think again.

The problem arose that, when venting her fury online, she quoted the name of the salon, which led to it coming in for some “trolling”, or an online witchhunt.

The first the salon knew about it was when another client came in and mentioned it. A brief internet search showed the comments hadn’t just been left on Facebook, and the salon had been “named and shamed” on a number of internet forums.

In some distress the owner contacted the Legal Lifeline to find out exactly what could be done, and where the law stood.

Fact versus opinion

The first thing to point out was that there were two entirely separate aspects to consider here: the law of defamation and the terms of use of the website.

Defamation covers two main topics – slander and libel. However, the principle behind them is the same: that someone has said or written something they know to be false.

This is one of the problems with online comments – they are not usually statements of fact, but a matter of opinion.

The law is increasingly treating comments online as if they were ranting to their friends down the pub. The old adage that, if someone has a good cut they tell a couple of friends but a bad cut

PAGE 32 SALONFOCUS MAY/JUNE 2013

and they tell ten, has multiplied massively when a single tweet can potentially reach thousands in seconds.

If the comment is factually wrong, for example they in fact went to the salon next door or did not even ask for the style or colour they are claiming, there may be legal recourse. Even so, defamation actions are notoriously expensive and there can be a risk of “heavy-handed” (even if legally fair) threats back-firing.

In this case, the salon owner accepted the comments were opinion, however she was still not happy with what she thought was an inaccurate description of the experience. So we had a look at the terms and conditions of the websites on which the forums were hosted.

‘Report’ function

Forums are supposed to have a “report” function that can be used to notify the administrator of potentially illegal or inflammatory content. But this is not always the case and some sites see negative posts as part and parcel of being an accurate barometer of opinion. Others can just be very slow at reacting or taking comments down.

In this case the salon owner used the report function, however the website declined to remove the comments, arguing they were only opinion.

We advised her the best step was therefore to launch a charm offensive. She invited the client back in to discuss what had gone wrong and what they could do to put things right.

As a gesture of goodwill she restyled the hair, offered some products and politely asked for the comment to be removed. Having received such good service, the client not only removed the

offending comment but left a positively glowing review!

This case goes to show that, even if there is no direct, legal course of action, the Legal Lifeline may still be able to help through suggesting a pragmatic compromise solution.

What the Legal Lifeline offers you: • •

24/7 employment-related queries Advice on commercial matters, 9am-5pm Monday to Friday

Access to the Legal Lifeline is available by calling 01234 834389.

Alternatively NHF members can log on to www.nhf.info. A summary of cover can be found on the reverse of your legal card carrier or by logging onto www.nhf.info.

The NHF operates a “fair use policy” for the lifeline. Members exceeding 50 calls within a 12-month period may be charged £20 plus VAT per call. All calls to the Legal Lifeline are recorded and monitored by Croner. If your chosen membership category does not include employer support service or your membership is unpaid at the time of any call a charge of £20 plus VAT will apply for all such calls made.

EVENTS NHF EVENTS OTHERS Please send your events to the NHF at enquiries@nhf.info by May 5 for July/ August, July 1 for September/October and September 1 for November/December.

Updated events listed on www.nhf.info

4

9

10

23

MAY President’s bi-annual dinner and Yorkshire Region networking event, Village Hotel, Hull. Contact: Linda Staveley on 01482 853215

MAY London Region ‘Race, Rattle and Roll’ Night, Ascot Racecourse.

Contact: Ian Egerton on 0207 357 7070 or ian@icomanagement.com

12

MAY Competition work – motivational training session, Aston & Fincher Training Academy, Birmingham.

Contacts: Stephen Coles on 07980 641386.

19

MAY Welsh Open Championships, The Coal Exchange, Cardiff Contact: Pani Lazarou on pani@nhfwales.co.uk

19/20

MAY Hair UK, the NEC, Birmingham Contact: www. beautyukshow.com/ hairuk

JUNE Bournemouth & Reading Competition, Carrington House Hotel, Bournemouth.

Contact: Lee Elliot on 02380227578 or 07519167361

JUNE South West Regional Championships, Weston-super-Mare.

Contact: Pat Cording on 01386 561704

30

JUNE NHF head office ‘Mud Runner’ charity event. For more details go to: www. mudrunner.co.uk or contact melanie.collins@ nhf.info if you would like to join the team.

29

JULY Croner employment law seminar, Best Western Monkbar Hotel, York. 7pm for 7.30pm start. Contact: vicepresident@nhf.info

6

OCTOBER NHF Diamond Awards, Palace Hotel, Manchester Contact: Melanie Collins at melanie.collins@nhf.info

7

OCTOBER NHF Annual Conference, Palace Hotel, Manchester Contact: Melanie Collins at melanie.collins@nhf.info

www.nhf.info

20

OCTOBER Welsh Hairdressing Awards, The Coal Exchange, Cardiff.

Contact: Carl Hinder at welshregion@nhf.info

11

NOVEMBER Cheshire Championships, NK Theatre, Romiley, Stockport.

Contact: Michael Burgum on 0161 220 7375

17

NOVEMBER Britain’s Best, Birmingham Details: www.britainsbest.me Contact: NHF head office on 0845 345 6500 or 01234 831965

MAY/JUNE 2013 SALONFOCUS PAGE 33

SOCIAL MEDIA

All the latest hairdressing-related tweets posts, pics and comments.

@nhfederation Pro Hairdresser Mag@ProHairMag

Get involved and let us know what you think of key issues that may affect your business. Get connected!

@NHFederation announces NHF Diamond Awards to be held this October...... http://fb.me/2PyuS9b7q

NHF - HQ@NHfederation A “Future High Streets Forum” is investigating how to improve town parking for shops. Are parking charges or curbs an issue for you?

We were at Professional Hairdresser Live, were you? Did you come and say hi to @nhftori and @nhfmel?

Very Glad to be a member of the @NHfederation So nice to have support for the important things in business :)

Emma Billington Yes! Parking meters and charges are killing local towns....

Get rid!

Gary Lane Killing high streets full stop!!

Jon Withrington We have four salons in different locations throughout the West Midlands and it seems to be a big issue with our clients and staff.

Local councils must see that the rising costs to run a business along with parking is killing off the high street.

This is something that really needs to be addressed.

Wendy VanFlute Oh dear yes. St Helen’s Council is destroying our village or should I say has destroyed it! It’s Rainhill, our salon is on the main road. We have been fighting for free parking which we can’t get and have a band of wardens slapping tickets on anything.

Michelle Obsidian Gegg Yep. parking is a massive issue, that’s why out-of-town supermarkets are doing so well, shame really, I miss unique individual shops.

Beatrice McShee@BeasHairdressin @NHfederation follow back for a member? You have been helpful over the years.

Let us know what you think of our brand new website and our exciting new look! http://bit.ly/WFLz5D

Desmond Murray@Desmurray Great shoot for 10 salons for the NHF today pic.twitter.com/OwCjAcrh

hji@hji Swit swoo! Loving your new look @NHFederation Alec McSimpson@DA_Films @NHfederation loving the new website guys! Very nice indeed!

Casey Coleman@CaseyC_Hair @NHfederation loving your new site!

Looking amazing!

Creative HEAD @creativeheadmag Matthew Biddle Yes the parking fees in Wolverhampton city centre are atrocious! Free parking would make people start using town centres again rather than the out-of-town retail parks! I blame the councils!

Mint Hair & Day Spa@MintHairDaySpa

The National Hairdressers’ Federation #NHF has a new-look website!

Twitter followers: 1,125 Top Tweeter: Barbertown Worcester Facebook likes: 5,731 Top liker: SK7 Tattoos & Hair, Surrey Connect with us and have your comments and tweets in the next issue of SalonFocus.

www.nhf.info

MAY/JUNE 2013 SALONFOCUS PAGE 35

PAGE 36 SALONFOCUS MAY/JUNE 2013