Why Hugging Your Customers Makes You Money, says CEO, Scott Sharkey of Sharkey's Cuts for Kids3/17/2017
  1. You attract the best employees! It's more fun and more rewarding to work in a hugging culture, and employees who were superstars elsewhere find they make more money with us. They do better and Sharkey's does better.
2. Traditional marketing costs are lower. Marketing costs are lower in a hugging culture because your huggers are your marketers. Instead of having to run lots of expensive ads in the media that you are never really sure your customers see, you build systems and processes that help your huggers market. 3. Gross margins are higher, because we sell more haircuts and retail items at regular or higher prices. When you've developed a genuine relationship with a customer, where they trust you and know you'll be fair to them, they'll also be fair to you. That means they'll be less interested only in what's on sale or what's the cheapest haircut in town. 4. The revenue stream is long term and not highly variable. Since we stay focused and close to what our customers desire, we don't have the ups and downs that other businesses go through. The relationships you build up with the customers mean that when they're ready to get a haircut, they come to Sharkey's rather than shop around to five or six different salons or barber shops. 5. Real estate costs are lower, because we don't have to pay for the ultra-best location. Many of our salons are not in the best spot in town, because it's not essential when you've got loyal customer relationships built on a hugging culture. "Thank you Jack", says CEO Scott Sharkey
Kids Hair Salons have "Zero" Competition A. It is a niche market with very few, if any, kids hair salon competitors. And if there is a small competitor, it is great for competition because it says there is a need for this type of franchise in that market. And competition is good especially if you purchase the best kids hair salon franchise in the industry. B. If there happens to be another kids salon in a market, most kids salon franchises will not set up shop within close proximity to that other kids salon. The kids hair salon market is large enough where competitors do not have to compete against one another. Therefore, both kids’ salons will have zero competition in a given market. C. Every town/city has 100’s of family & discount hair salons (Supercuts, Fantastic Sam’s, Hair Cuttery, local barber shops). Kids salons do not compete with these businesses. Kids salons prefer to be in these types of towns/cities with many discount hair salons because the more there are, the more kids there are in that town/city. D. Parents want a hair salon that strictly caters to their children, not a discount hair salon or barber shop that caters to adults. E. Most adult hair salons don’t want kids. They hate them and do not want them. We want them all and we get them!  Kids Salon Franchisees Employ Very Easy To Work With Stylists. No Stress! A. Kids Stylists vs. Adult Salon Stylists 1. Kids salon stylists do not move from salon to salon and take clientele with them like adult salons do. Parents and kids come to a kids salon because they like the ambiance & service, and of course the quality of the haircut given by the professionally trained kids stylists. If a stylist should leave the clients will just use a different stylist recommended by the salon receptionist. 2. Kids salon stylists are typically married with kids or single moms with kids. So they are much more nurturing than the standard family salon stylist or barber, which are usually in there 20’s and right out of cosmetology school (no experience). Kids salon stylists are typically moms with kids so they know how to work with kids because they have their own. And love their job! 3. Employees of kids salons are skilled, nurturing employees. You do not have to work with minimum wage employees that come and go and never show up for work (food franchises, etc.). Kids salon stylists and employees are professional & responsible employees that have families at home just like we do. And these 5-7 employees in a kids salon franchise are treated like family.  Trendy Franchises Do Not Last! Or Meet Your ROI! A. Kids Hair Salons vs. Yogurt, Pizza, Hamburger, Adult Hair Salons, Retail, Food Franchises 1. Kids hair salons are here to stay vs. trendy concepts which typically only last 2-5 years. By the time you “maybe” make your ROI back with a trendy franchise (and this will only happen if you are in the top 30% of the franchisee performers), your concept has been replaced by another trendy concept. Ex. Cold Stone Creamery being replaced by Yogurt, Five Guys being replaced by Smash burger and Shake Shack, Crumbs cupcakes, Curves, etc. Investments for above concept could range from $250K-$700K per unit vs. $128K - $550K and are not sustainable long term. 2. Trendy concepts attract trendy competitors (ex. A trendy yogurt shop or food chain will attract the same concept with a different brand in the same town. Multiple yogurt or pizza or food or adult salons cannot survive in a town with so many options. 3. Kids hair salons do not attract competition, but attract the kids that the other local salons do not want. And we want them 4. Why invest in a trendy franchise that has “zero” chance of long term survival? This type of trendy investment is great for the Franchisor, but not great for the Franchisee. Being busy does not always mean you are making money.
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AuthorSharkey's Franchising Co. founded in 2001 by Linda and Scott Sharkey |
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