We were lucky to catch up with Sarah Soegel recently and have shared our conversation below.

Hi Sarah, thanks for joining us today. Let’s jump right into the heart of things. Outsiders often think businesses or industries have much larger profit margins than they actually do – the reason is that outsiders are often unaware of the biggest challenges to profitability in various industries – what’s the biggest challenge to profitability in your industry?

One recent challenge I’ve faced is the price increase of product for the little guy in the big hair world. I would say the biggest profitable services for hairdressers is hair color. However, over the years, especially since 2020, I’ve seen an increase in the prices of hair color for the hairdresser. This forces everyone to raise their prices and makes the client more hesitant to get color services. So the less hair color services you have the less profit.

I see a shift in the retail side of it as well. The individual stylist that are both renting or have a small salon are going to be forced to sell less retail due to the increase in prices of those products as well. You are finding professional products in drug stores, and Amazon and the only deal that you get is to buy in bulk which for the individual stylist is not practical.

So what is one to do about this? I personally have started to focus more on haircuts and spreading out hair color services to help. The client also spread out their budget. I also think that creating a unique experience for them is important without spending any extra money on your end. Make yourself valuable to the person in your chair. Make the experience valuable to the person in your chair.

How would I do this? I’m glad you asked.
Don’t ever let them leave with their hair, wet. Blow dry and style them out so that they feel like they have had a complete service. Ask yourself how you would like to feel when you have your hair done. Hot towel? Scalp massage? Prep your feet up? All of these things are free to you. And most importantly The attention and focus is solely on the person in your chair. There are so many different little services that you can do for them to increase your value.

Great, appreciate you sharing that with us. Before we ask you to share more of your insights, can you take a moment to introduce yourself and how you got to where you are today to our readers.

As you may have guessed I am my own business and I booth rent a suite.
I came from a corporation that used to be all about managing and building your business in the salon.It was a woman owned business at the time and I thrived there for seven years. I’ve worked in the industry for 15 years now, but it was at that place where I learned the most about salon life, and business.
I love to be eco-friendly with my salon, products and tools. I’ve partnered with Green circle salons to help recycle my salon waste and do my part for the environment.

Can you tell us about what’s worked well for you in terms of growing your clientele?

I am of the belief that creating a salon environment that brings joy to you and the person in your chair increases your business. They tell your friends about you and their wonderful experience and their friends and family start coming to you.

I think a very old and outdated mindset is that it’s all about profits and money and trying to drain people of it is toxic. If you work yourself to the bone, you’re not helping anybody because you have nothing left to give. We are seeing businesses fail because they are chasing the money and not caring about the people they are serving.
This world needs caring businesses and places in their community that they can feel like they can be their best and true selves. It doesn’t have to be a hair salon. It can be the bakery, the dry cleaners, the local deli, or even the local coffee shop.

How about pivoting – can you share the story of a time you’ve had to pivot?

When I worked For the salon corporation, I climbed the ladder as far as they would allow me Without sacrificing time with my family. I wanted to do more services and spread out my Clientele reach. I also wasn’t making that much money and I didn’t feel like I was going to ever increase my profits. The only thing keeping me there was they offered benefits.
However, I had to make a scary decision to remove myself from the corporation and go out on my own. The jump is scary because you go from having A commission to having to pay rent. Taxes are different, how you pay yourself is different, managing your expenses is different, but it is all empowering.
It was all new territory, but luckily, I had a very supportive community and a lot of my clients followed me to my new place. Since then, I have become a licensed barber, And have started to help other stylists become more independent.

Image Credits

Jeff Koontz photography