SALON SIZE AND TYPE
The salon is designed to accommodate 12 to 24 hairstylists at full capacity. The salon will open with two to five stylists, and should reach full-stylist status within two to five years after opening.
The salon will occupy a spacious 3,000 square-foot freestanding building in a high-traffic area with very much exposure at the corner of Wilshire Drive and Roxdale Boulevard, across from the Howard Johnson Hotel.
The salon is in the middle of a small cove of restaurants and shares the community parking area. It is easily accessible for the clients of Howard Johnson. The location is leased from Dr. Phillip Evanston, Piermont Medical Center, Frankfort, KY.
SALON PRICING STRUCTURE
The salon services will be moderately priced, with haircuts ranging from $15 to $28, depending on the pay rate of the particular stylist (see EMPLOYEE PAY/BENEFIT PACKAGE).
Chemical services will range from $45 to $80 for color services — depending on the type of service done and time needed to complete it. Other salon services are based on a per-application cost, i.e. one skincare/makeup session will range in cost from $25 to $50 and one full-body massage $45.
According to the preceding SALON PRICING STRUCTURE, we estimate the salon’s income and expense figures for the first three years of operation according to the chart shown as APPENDIX A.
THE STATE OF THE INDUSTRY
In a time when a large portion of the population is becoming more and more concerned with health and appearance combined with an increase in dual income families, the salon industry finds itself faced with unique possibilities. The health-conscious working male and female population requires salons that fit their image and lifestyle.
Customers are demanding services and products that allow them to look equally good at board meetings and on the tennis court, in group advertising meetings and at the gym, at the theater and at the beach.
These dual income families require extended hours, a variety of services, and the convenience of purchasing all body and beauty care items and services in one location. The majority of these families are willing to pay moderate to high prices but expect quality service.
The salon will be located in a city with a population of 75,700 and a county with a population of 279,995, contained within approximately 417.7 square miles. The median household buying income is $26,590 for Franklin County. Ninety percent (90%) of the existing clientele of our business has an effective buying income of $27,000 to more than $50,000 a year. The median age of our clientele is 37 years old, with the average age of the population falling in the 22 to 62-year group. Average years of schooling completed is 16.
Population experts estimate increases in both total population and income over the next 10 years. The salon is geared to appeal to customers in the 22 to 62-year age group with a sophisticated and upbeat decor plan. The services and products that will be available are designed to satisfy the most discriminating older customer as well as cater to the younger clients and their ever changing fashion needs (see STAFF TRAINING).