SalonFocus Nov-Dec 2011

THE ESSENTIAL MAGAZINE FOR SALON OWNERS NOVEMBER/DECEMBER 2011 | £3.50THE ESSENTIAL MAGAZINE FOR SALON OWNERS NOVEMBER/DECEMBER 2011 | £3.50

Mark Coray: talking about a new generation

Snap up a salon without burning your fingers

Warning on winter fuel bills

Trainers told to tackle

skills’ gaps

www.nhf.info NOVEMBER/DECEMBER 2011 SALONFOCUS PAGE 3

WAVELENGTH

A TOUGH MESSAGE TO ENERGY GIANTS … AND TO OURSELVES

There are some things that, as a salon owner, you pretty much have to accept as a given. You know (in an increasingly online-focused age) your business will have to retain at least some kind of physical bricks and mortar identity; you know it will have to have the right look and ambience, which may well mean significant upfront and ongoing costs; you know it will have to be people-heavy,

something that, again, will not come cheap; and you know and accept that, what with lighting, heating, hot water and electricity, it is going to be an energy-intensive business model.

It’s not hard therefore to see why, as we report on page five, salon owners are feeling increasingly frustrated, angry and despairing at seemingly ever-spiralling fuel bills, with dire warnings of increases of as much as a fifth for some salons in the coming months. With all the “big six” suppliers having sharply raised

their fuel tariffs (which weren’t exactly cheap to start with), energy prices look set to become, if you pardon the bad pun, an increasingly heated issue this autumn and winter.

Two key problems, as even energy secretary Chris Huhne has identified, are the lack of transparency in energy pricing and the sheer hassle of changing provider, especially for businesses where continuity of supply is vital. Despite energy “profiteering” now looking set to be one of the key political battlefields for the next few months, this is not something that will be resolved overnight.

Whether we all end up buying our energy from a central “pool”, as Labour leader Ed Miliband has proposed, or through some other more competitive mechanism, there are innumerable structural, market and supply complexities that will need to be unravelled, not to mention the political will to tackle such an issue. So the message for salons is clear: in the meantime be more proactive and shop around as best you can, but also work to reduce your own energy usage as much as possible. Just because salons have little option but to accept energy as a significant overhead need not mean

having to stomach sky-high bills without a fight. And in the longer term, yes, there needs to be more effective leadership from politicians and regulators to ensure energy-intensive businesses such as hairdressing can get a fairer deal and more choice.

Without wanting to stretch the energy analogy too far, NHF president Mark Coray’s address to conference last month definitely had the potential to land him in hot water. As we report on page six, his underlying message was that, in order to avoid stagnating and becoming introspective, this Federation needs to recognise and mentor the potential of its younger members and encourage new blood to step up. The corollary of this, of course – and the hardest part of his message – is that older members, many of whom will have devoted

years of graft and commitment to their regions or nationally, or both, may in turn need to recognise the time has come to step back. That, as Mark rightly emphasised, does not mean discarding their knowledge and dedication, far from it, but it will mean an evolution and even sometimes an element of “letting go”. Such a transition is never easy but, as Mark also made clear, if the NHF is to reach its true potential and stop being “the best kept secret in hairdressing” then it is a path it has to follow.

Mark, for one, was putting his money where his mouth is in October by being interviewed for the BBC’s flagship current affairs programme Panorama on the arrival of the new national minimum wage rates, as we report on page nine. Let’s be clear, for such a high-profile media brand as Panorama, with all the

small business “rent-a-quotes” out there to choose from, to have come to the NHF for input and perspective is a big deal. It shows the sort of media and public “reach” that is feasible but also illustrates the growing authority and credibility of the NHF to speak on these sorts of issues, to be a respected “voice” of industry and the high street. Long may it continue.

“In order to avoid stagnating and becoming introspective, this Federation needs to recognise and mentor the potential of its younger members and encourage new blood to step up.”

SALONFOCUS NOVEMBER/DECEMBER 2011

CONTENTS

NEWS05 Salons facing winter fuel bills shock06 Time to stop being hairdressing’s best

kept secret08 Training: skills’ gaps and confusion09 Call to freeze minimum wage 10 Salons told to prepare for ‘wave and pay’11 Balls urged to join NHF’s VAT campaign12 Plan to simplify music licensing14 Staff contracts rated top NHF benefit

FEATURES24 Christmas cheer – maximise the festive season26 Media management – secrets of PR28-29 Bargain Hunt? – take care when buying

another salon30 Wake up and smell the coffee – why a hot

drinks machine can mean business

INSPIRED17-20 American Beauty – Clipso’s latest collection,

American Vacation

BEAUTY12 Beauty Spots – Paul Edmonds’ new House

REGULARS03 Wavelength – A tough message to energy

giants… and to ourselves09 HairClips – David Morris on registration

campaign trail11 Movers and Groovers – Jamie Stevens joins

X Factor team16 Cutting Brief – your legal problems solved22-23 Federation Focus – new Inspire and Barbers

Élite teams32 Column – Beverly C on a busy year 33 Events – key dates for your diary34 Backwash – nailing the wrong job

Paul Falltrick is owner of

Paul Falltrick Hairdressing and Academy

in Romford,

Essex and artistic

director for

Matrix.

Sam Grocutt is managing

director of PR

agency Essence PR and has

specialised in the

hair and beauty

sector for more

than 15 years.

She is also the

PR for the NHF’s

Inspire artistic

team.

Wayne Kranz is managing

director of salon

management

and consultancy

firm Nexus Revolution.

Hairdressing

icon Beverly C

has twice won

the British Hairdresser of the Year Award

and she was

the first female

hairdresser to be

awarded an MBE.

She is a brand

ambassador for

Goldwell and

BaByliss, and

is a regular face

on TV and in the

press.

Gillian Dowling

works for Croner

as employment

technical

consultant.

Karen Gold is

co-owner, along

with Neil Cox, of NK Hair in

Henfield, Sussex.

OUR CONTRIBUTORS

SALONFOCUS IS PUBLISHED BY:National Hairdressers’ Federation,One Abbey Court, Fraser Road,Priory Business Park, BedfordMK44 3WHt: 0845 345 6500t: 01234 831965f: 01234 838875e: [email protected]: www.nhf.info

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t: +44 (0) 1536 747333f: +44 (0) 1536 746565w: www.mainlinemedia.co.uk

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Advertising Production ManagerCraig Barbere: [email protected]

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While every care is taken in compiling this issue of SalonFocus including manuscripts and photographs submitted, we accept no responsibility for any losses or damage, whatever the cause. All information and prices contained in advertisements are accepted by the publishers in good faith as being correct at the time of going to press. Neither the advertisers nor the publishers accept any responsibility for any variations affecting price variations or availability after the publication has gone to press. No part of this publication may be reproduced in any form without the permission of the publisher, to whom application must first be made. The views expressed by contributors to SalonFocus are not necessarily those of the NHF, the publisher or its editor. © 2011 The National Hairdressers’Federation.

Material for consideration in this section of the magazine should be submitted on CD-ROM as high resolution jpeg or tiff files to The Editor, SalonFocus. Submissions should be made on the understanding that the National Hairdressers’ Federation has the right to use the material in any part of the magazine and any of its other publications, promotions or website, free from any copyright restrictions, or appearance fees other than the issue of artistic and photographic credits where applicable. Please include salon name, photographer & stylist.

Front CoverHair: Clipso Artistic Team Art director: Darren FowlerPhotography: Martin EveningStyling: Karen BinnsMake-up: Janet Francis


NEWSFOR TODAY’S SALON OWNER

Salons could be in for a nasty shock this winter, with some seeing their energy bills rocketing by up to 19 per cent.

All the “big six” UK suppliers – British Gas, EDF Energy, E.ON, npower, Scottish & Southern Energy and ScottishPower – had raised their prices by the time SalonFocus went to press.

The move came against a backdrop of increasing public anger over soaring energy prices, and fuel bills becoming a growing political issue.

Energy secretary Chris Huhne in September pledged at the Liberal Democrat party conference that he would “get tough” with energy companies and make it easier for firms and individuals to get a better deal.

And Labour leader Ed Miliband at his party’s conference said a future Labour government would break up the dominance of the big six suppliers, creating a central energy “pool” that people could buy from and simplifying how bills were calculated.

Carl Mitchell, director of Bonce, which has two salons, in Walsall and Wednesbury in the West Midlands, feared this winter would be “really tough” for salons.

“I really agree with Ed Miliband’s idea of breaking up the big six because they are not competitive. The only deals I think salons should be going for are fixed long-term contracts,” he said.

NHF president Mark Coray welcomed the political intervention, arguing that many salons felt helpless, angry and frustrated about constantly rising energy bills.

“Most salons try to be as energy efficient as they can be, but there is no getting around the fact that our business uses a lot of heat, lighting and water,” he said.

“Switching supplier can sometimes help but when you’re running a busy salon in a difficult economic environment the last thing you want is to be adding to your paperwork or risking the continuity of your energy supply for what may just be a temporary saving.

“Anything that caps prices or makes it easier for salon owners to shop around is going to be warmly welcomed,” he added.

The latest Business Energy Index carried out by npower has suggested many small businesses are compounding the problem by failing to be proactive about energy consumption.

It calculated that 4.8 million small and medium-sized UK firms had nothing in place to manage energy efficiency and nearly 18 per cent did not know if they had reduced their energy consumption in the past year.

Jonathan Elliott, managing director of switching service Make It Cheaper said most salon owners – like much of the general population – did not know what represented a good or bad price so they found it hard to tell if they should be doing something about it.

A good rule of thumb was that any salon paying more than 10p a unit for electricity or more than 40p a unit for gas should shop around.

“The price range for business energy is incredibly wide, with factors such as postcode, company credit score, energy consumption, length of contract and when you last switched coming into the equation,” he told SalonFocus.

Jonathan said it was not unknown for one business to be paying two or three times as much as the building next door for exactly the same amount of energy – and, often, the power was supplied by the same company.

He gave the example of Felix Campfield-Walker, owner of Farley’s salon in Hitchin, Hertfordshire, for whom electricity is his biggest fixed cost.

Felix used Make It Cheaper to help calculate he could save £714 a year by switching from the 15.7p a unit he currently paid, through npower, to 9.12p a unit with ScottishPower when his contract ends later this month.

British Gas Business director of small enterprises and operations Marc England urged salons to ask to be put on their “smart meters” which would mean they no longer had to rely on estimated bills and could cut the amount of time spent on administration.

He also advised installing more energy-efficient fluorescent light-fittings with controls such as sensors and daylight detectors to ensure lights were only on when needed and to invest in timer switches to turn off heating and machines at the end of the day.

Other tips included using time clocks to shut down heating overnight if the hot water was provided by “under sink” storage units. Investing in more energy-efficient electrical appliances could also be value for money, as older hairdryers and tongs tended to waste far more energy.

CHRIS HUHNE: TOUGHER ON UTILITIES

SALONS FACING WINTER FUEL BILLS SHOCK

ED MILIBAND: SIMPLER BILLS

JONATHAN ELLIOTT: SWITCH TO SAVE

CARL MITCHELL: FEARS

by Andrew Don

Next year, 2012, we can look forward not just to the Olympics but to the 70th anniversary of the amalgamation, in 1942, of the National Federation of Hairdressers Limited and the Northern Counties Hairdressers’ Federation, debatably the first step towards the forming of our Federation we know and love today.

This conference therefore is a good moment to celebrate all we have achieved to date but also consider what sort of Federation we would like to have in our future.

As an organisation, we have made great advances in the services and benefits which we are able to offer members. In a challenging environment on the high street, having our Federation behind us does make all the difference.

The fact we are now the biggest single salon trade association matters, it matters hugely. It gives us authority but it also gives us a massive responsibility; a responsibility to make sure we wield what power we have in the most effective way possible; a responsibility to effect the changes that matter most to our industry; a responsibility to lead with conscience and clarity.

Most of all, it gives us a responsibility to ensure we don’t stagnate and become an organisation that speaks only to itself rather than to the wider public.

Our biggest downfall, in my eyes, is that we don’t blow our own trumpet enough. We are, in many respects, the best kept secret of our industry. That is something I want to see change.

For me, our Federation is like a family. It can have its differences and arguments but at the end of the day it’s bound by a common thread, a common bond… in our case our passion for hairdressing.

But, like all families, it cannot stand still, it cannot simply be a reflection of its older generations; it has to evolve, it has to reflect and embrace the needs of its younger members.

Let me be clear: this is not about discarding the talent, experience and sheer dedication of

our older and mature members. Not at all. In this period of change and transition we need their wisdom and guidance more than ever.

No, this is about transfusing new blood into our system. It’s about opening ourselves up to new ideas and re-energising the whole body of our Federation.

To this end, our organisation needs to become less formal, less about minutes and red tape; less procedure, procedure, procedure and more about inspiration and imagination.

My dream is that everybody and anybody throughout the UK knows exactly what the National Hairdressers’ Federation stands for.

Back in July, I attended the Trade Association Forum’s Best Practice Awards at which our magazine, SalonFocus, won “Best Publication of the Year”. That is a huge credit to the magazine, the team behind the magazine and to the Federation as a practitioner of industry best practice.

More than that, however, surrounded by tables of the great and the good from trade associations across the country, I felt this was recognition of how important and influential hairdressing is, and is continuing to become, to our high streets and to the wider economy.

It was recognition that hairdressing and hairdressers deserve – and need – to be taken seriously. In many cases it is hairdressing salons that are keeping high streets alive and vibrant in these difficult times.

We need therefore – as a craft and as an industry – to recognise our value to society: artistically, educationally, commercially and economically.

Every salon owner has knowledge, enthusiasm and passion that we, as a Federation, must tap into.

The NHF is already a force to be reckoned with, both within our industry and more widely. We now have the potential to be at the forefront, changing perceptions and promoting the skills, quality, entrepreneurial flair and sheer exuberance of our craft.

Change is not an option, it is a must. We need to stop being the best kept secret in the hairdressing industry.

NEWS

PAGE 6 SALONFOCUS NOVEMBER/DECEMBER 2011

TIME TO STOP BEING HAIRDRESSING’S BEST KEPT SECRET

NHF president Mark Coray set out his vision at conference in October of a Federation more influential, more high profile and more enthused with ideas from members of all ages. The following is an abridged version of his speech.

“The NHF is already a force to be reckoned with. We now have the potential to be at the forefront, changing perceptions and promoting the skills, quality, entrepreneurial flair and sheer exuberance of our craft”


HAIRDRESSING TRAINING: SKILLS’ GAPS AND CONFUSION Salon owners are worryingly unclear about what hairdressing qualifications actually mean in practice, but do want to see perming and reception skills becoming a mandatory part of the hairdressing training syllabus.

The NHF’s survey of members on the future of training and qualifications was published in October, and debated at this year’s conference and annual general meeting in Newcastle.

The poll was launched earlier this year (SalonFocus, May/June, 2011), and 85 members responded to a series of questions about the current structure of training and NVQ Level 2 and Level 3 qualifications in hairdressing and barbering.

It found that barely a third – 31 per cent – said they “fully understood” the current credit framework for NVQs.

A total of 40 per cent admitted either to little or no understanding of it, while 26 per cent conceded they were completely unfamiliar with the framework as it stood.

This, argued Federation education committee chairman John Armstrong, indicated that training and awarding bodies were failing adequately to communicate with the trade.

“If people do not have any idea about qualifications then they will have no way of evaluating what skills people have. So there is a communication issue that the awarding bodies need to address,” he said.

There was also confusion about what Level 2 and Level 3 qualifications actually stood for.

A total of 39 per cent of those polled said Level 2 was the standard level for working on the salon floor, while 43 per cent said Level 3 was for those wanting to progress into supervisory or management positions. But this was not now the case, stressed John.

“The qualifications have changed but people’s perceptions have not. There is a misconception that Level 2 is a qualification that allows you to go on to the salon floor, but Level 2 is not now the norm for independent working; it shows you have reached a point where you can work under supervision but where you will need further training to be able to work independently,” he pointed out.

Members also felt there was a gap between the skills students were leaving college with and what salons actually wanted.

In particular, the vast majority (93 per cent) of salon owners who felt there were gaps in training wanted to see perming become a mandatory part of the syllabus, while there was also strong support for reception skills to be made compulsory.

Salon owners wanted students to come out with better

client, communication and management skills and have better awareness of the science and theory behind the practical elements of their NVQ training.

“The information we got back does give us a platform to begin to look at how we are going to try and influence the agenda about future qualifications,” said John.

The survey will be followed by further contact with members who responded and discussions will be opened with Habia, the standards-setting body for the hair, beauty, nails and spa sector, and awarding bodies, he added.

“This is very much just the beginning of a process of working more closely with Habia and training providers to put together qualifications that will satisfy the needs of employers in the current market,” he said.

In a separate development, fears are growing that a government shake-up of schools’ league tables could lead to hair and beauty training at GCSE being downgraded or even disappearing from school timetables altogether.

The Department for Education (DfE) has completed a consultation on a proposal that only GCSEs and “valued” vocational qualifications that meet five strict criteria will be recognised in new schools’ league tables from 2014.

Although precise plans will not be outlined until early in the new year, the indications are that the Diploma in Hair and Beauty Studies (DipHBS), Edexcel’s eight BTECs that cover hairdressing, barbering and beauty and City & Guilds’ numerous qualifications in the sector for this age group will no longer count towards league tables.

While the DfE has insisted schools will retain the freedom to offer any qualifications approved for 14-16-year-olds, the fear is that schools will inevitably stop offering such courses, so depriving children of an early introduction to hairdressing.

Simon Shaw, founder of Simon Shaw Education, warned: “If the government proposals go ahead, I can foresee schools abandoning these types of programme.

“What they are effectively saying is hairdressing doesn’t count. Why? As important is the question of what will happen to the young people that would have been on these schemes? I think it could be a potential disaster,” he added.

Stuart Holmes, owner of Stuart Holmes Hair & Beauty Spa in Cheltenham, said removing the DipHBS from the league tables “endangered” the future of students who wished to take it as equivalent GCSEs.

“I am currently apprentice champion for service industries for Gloucestershire and to hear that there is a danger that schools may refuse to offer hairdressing is incredibly disheartening,” he added.

NEWS

SIMON SHAW: POTENTIAL DISASTER

JOHN ARMSTRONG: POLL

STUART HOLMES: EFFECT ON YOUNG PEOPLE


The national minimum wage (NMW) must be frozen next year to give salons a breathing space and help them survive the tough economic climate on the high street, the National Hairdressers’ Federation has said.

In its latest submission to the Low Pay Commission, the body that advises government on the level at which the NMW should be set, the Federation has said increasing the NMW year-on-year was simply eating into the margins of labour-intensive businesses such as hairdressing salons.

It was also eroding pay differentials between juniors and stylists, so deterring salons from hiring juniors.

This was a key issue highlighted by Federation president Mark Coray in an interview on the BBC’s flagship current affairs programme Panorama in October.

In an investigation – “All Work and Low Pay” – to coincide with this year’s rise in the NMW (see panel), reporter Shelley Jofre discussed with Mark how some salons encourage workers to become self-employed as a way of getting around paying the NMW, but also how the wage is affecting recruitment of juniors.

In its submission to the LPC last year, the NHF said as many as 12,000 employed hairdressing jobs had been lost between September 2009 and 2010, while at the same time the number going self-employed had gone up by around 10,000.

“If a salon makes somebody self-employed, the salon actually gets out of paying holidays, gets out of paying PAYE and any sick pay, so it is almost like a legal way of actually avoiding the high overheads that come with the minimum wage,” Mark explained.

He said he had been forced to lay off junior staff because of the NMW: “My stylists, when they are having their colours rinsed off or when they are having their clients’ hair shampooed, could be doing it themselves. So why would I want that extra higher expense?”

Asked was he therefore taking on fewer juniors as a direct result of the NMW, Mark replied: “Definitely.”

Intriguingly, this is an issue now being recognised by the LPC itself.

In an interview with the Daily Telegraph in October, LPC chief economist Tim Butcher said it was launching an investigation to see if there was link between the NMW and Britain’s high levels of youth unemployment.

It has highlighted to ministers the existence of recent research that has suggested, in difficult economic circumstances, “the level of the minimum wage may have had an impact on the employment of young people”.

But Tim Butcher argued it was unclear whether such high unemployment levels were down to the economic slowdown generally or a more specific “minimum wage effect”.

This year’s NHF’s LPC submission also called for a less punitive enforcement regime and the introduction of bi-annual rather than annual rises to give businesses more wage stability.

Mark’s Panorama interview can be viewed at: http://www.bbc.co.uk/programmes/b006t14n

CALL TO FREEZE MINIMUM WAGE TO GIVE SALONS BREATHING SPACE

MARK CORAY: PANORAMA INTERVIEW

MORRIS VISITHairdresser-turned-MP David Morris met hairdressing students in September, ahead of this month’s Parliamentary vote on compulsory registration (SalonFocus, Sept/Oct 2011). He met students from Venture Training in Preston and Blackpool and from Lancaster & Morecambe College.

COLOUR POLL An NHF member is urging salon owners to get in touch if they have experienced an increase in clients demanding to get their hair coloured without a patch test. Roy Sparkes, who runs MasterClass in Market Harborough and Wellingborough, said he had seen a sharp rise in clients questioning the need for patch testing, especially those bringing vouchers from deals’ websites such as Groupon. Members can email views to [email protected]

TEAM GB VACANCYThe NHF is looking to recruit a team manager for Team GB. Applicants must be NHF members and will be expected to provide leadership for the team, nurture talent and be focused on achieving gold at international championships. They will need to be able to attend training sessions throughout the country. For more details or a job description please send a CV and covering letter to Stephanie Munno at NHF head office.

TRAINING NETWORK An online network of hairdressing training providers has been launched to promote and improve training for apprentices. HairNet has been devised by Teresa Mullin of KM Training to bring together free resources available around this issue. It can be found at: www.hair-net.co.uk

HAIRCLIPS

National minimum wage rates from October 1, 2011

Adult rate: £6.08 an hour (up 15p)•16-17 year olds: £3.68 an hour (up 4p)• 18-20 year olds: £4.98 an hour (up 6p)• Apprentices: £2.60 an hour (up 10p)•


NEWS

SALONS TOLD TO PREPARE FOR ‘WAVE AND PAY’

Salons need to start planning for the arrival of “wave and pay” technology into their salons, amid predictions it will become an increasingly popular form of payment by the public within the next two years.

As yet, the technology remains in its infancy and can only be used for transactions worth less than £15, meaning it is unlikely to be immediately relevant to most hairdressing services.

But industry observers and technology analysts are predicting this will inevitably change as demand grows, and businesses need to start preparing.

Wave and pay – also known as “contactless payment” – enables customers to turn their mobile phone into a “digital wallet” to pay for goods.

Customers pay by simply waving enabled bank cards or smart phones over a special terminal located at the till.

There are around 27,000 such terminals already in place around the country, and big-name retailers such as Pret A Manger, McDonald’s, EAT, Tesco, the Co-op and Boots already accept payment in this way in some of their outlets, with the Post Office recently announcing it will follow suit.

Banks have predicted the number of terminals will increase to a massive 25 million by next year, while Russell Feldman, technology and telecoms consultant at internet-based marketing research company YouGov, has said he expects customers will increasingly expect to see wave and pay as a payment option.

“If post offices are doing it you can see the technology will be widely available,” he told SalonFocus.

Vodafone, O2, Orange and Everything Everywhere, the parent company of T-Mobile, have also formed a partnership to develop an “m-commerce platform”, essentially meaning wave and pay.

Barclays has already rolled out contactless cards to all its customers while Lloyds has been running a pilot which it hopes to roll out later this year.

The technology behind this innovation is known as near-field communication (NFC) and the launch in September of an NFC payments App by Google, called Google Wallett, which can be used on its popular Android mobile phone system, was likely to accelerate take-up and usage of this new payment method, predicted Russell Feldman.

“I would think in a couple of years, when it has been evolved, it would be something that all retailers, including salons, would need to incorporate,” he said.

“Salons would need to ensure they have a terminal that accepts NFC or contactless payment,” he added.

Barclaycard told SalonFocus the cost of processing this form of payment for a small salon would be the same as existing card transactions, or possibly be even cheaper, and that equipment would be included as part of its business package.

WAVE AND PAY: TURNS PHONE INTO ‘DIGITAL WALLET’

Salons across the country were caught up in August’s riots, but NHF members at least appeared to have emerged relatively unscathed.

A number of high-profile salon businesses were affected, including Toni&Guy and Headmasters in Clapham Junction, London, Tottenham barber Aaron Biber and salon group Burlingtons, which, like many, had to close its Birmingham and Manchester salons early because of rioting nearby.

But Coversure Insurance Services, the NHF’s approved insurance broker, reported two of its insurers, Sterling and Allianz, had logged a provisional £7,500 worth of claims relating to property damage, split between just two London salons, as SalonFocus went to press.

Both insurers said they were fast-tracking the claims and doing all they could to ensure the businesses were back up and running as soon as possible.

At the time the NHF and its insurers moved swiftly to advise and support salons affected by or worried about the riots. An alert was issued on the Federation’s website, www.nhf.info, because of conflicting information being published on social media and in the press about insurance cover.

This included a plan of action for liaising with police, how to carry out a security audit, advice on how to review contingency and business continuity plans and clarification on how to make insurance claims in the event of riot damage.

Elsewhere, insurer SimplyBusiness said it saw a 47 per cent rise in quote requests from independent beauty salons and a 33 per cent rise from hairdressers in the wake of the riots, suggesting businesses were actively revisiting their level of cover having seen how others had been affected.

NHF SALONS LARGELY ESCAPE RIOT DAMAGE


BALLS URGED TO JOIN NHF’S VAT CAMPAIGN

The National Hairdressers’ Federation has urged shadow chancellor Ed Balls to get fully behind its Cut & Dried? VAT campaign, after the Labour politician called for the introduction of a variable VAT rate for some businesses.

In a keynote speech to the Labour Party conference in September, Ed Balls outlined a five-step plan to boost the economy and create jobs, including an immediate one-year cut in VAT to five per cent on home improvements, repairs and maintenance as well as a temporary reduction in the headline rate of VAT from 20 per cent to 17.5 per cent.

Both demands strongly echo the NHF’s own campaign Cut and Dried? The Case for a VAT Revolution for Hairdressing Salons unveiled at the start of this year, which is calling for a reduction in the rate of VAT for salons operating under the HMRC’s Flat Rate scheme from 13 per cent to five per cent and a cut in the headline rate of VAT for labour-intensive industries and sole

traders from 20 per cent to 10 per cent.

NHF president Mark Coray said: “Ed Balls is right to put the spotlight again on the damaging effect our current high headline rate of VAT is having on many small businesses. But we’d urge him to go further and back our call for a variable VAT rate for all labour-intensive businesses, not just for home improvements, as this would make VAT much more responsive and flexible to the needs of small businesses.”

In another indirect nod to the NHF, Ed Balls also called for a one-year national insurance tax break for every small firm that takes on extra workers.

This echoed what the NHF said ahead of the Budget in March, when it urged chancellor George Osborne to allow businesses employing fewer than 10 staff to be exempt from National Insurance Contributions for the first two years employment of up to two recruits.

The chancellor, in his speech to the Conservative Party conference in October, outlined plans to allow small businesses to access funding directly from the Treasury, through a programme of so-called “credit easing”.

He also said he would be making it harder for workers to claim unfair dismissal by extending the qualification period for a right to claim and introducing a fee for taking a case against an employer.

The need to help salons in the tough climate has been highlighted by warnings from a leading debt collection agency that the recession and too much leniency over credit control has caused debt problems to escalate “out of control” in some cases.

Carole Hughes, managing director of Daniels Silverman, told SalonFocus she had seen a doubling of salon-related enquires to the business year-on-year.

“Serious cash-flow problems have forced some salons into bankruptcy and many others to the brink of collapse as they do not have enough funds to continue,” Hughes said.

Salon owners were making life extra hard for themselves by putting their heads in the sand and neglecting to address problems such as late payment by suppliers or tackling expensive debts that can quickly mount up.

Common problems included failing to prioritise cash-flow management, allowing suppliers too much credit, ramping up the credit card unnecessarily or giving too much leeway to stylists or beauticians sub-letting space, she added.

MOVERS&GROOVERSJAMIE’S X FACTORCelebrity stylist, and SalonFocus columnist, Jamie Stevens has been appointed as new hairdresser on hit ITV talent show The X Factor. Jamie is working with stylist Laury Smith and make-up artist Natalya Nair on the live finals of the show throughout the autumn.

ON YOUR BIKE

Aberdeen salon Hatstand Nelly, owned by Lorraine Watson, has launched a Cycle to Work scheme for its staff to encourage them to come to the salon in a more environmentally friendly, and healthier, way. The government-backed scheme allows business owners to buy and then loan bicycles as a tax-free benefit.

CANCER CAREThe Cutting Company of Woburn Sands, Milton Keynes, owned by Cathy Grimes, in July provided the venue for a fundraising event for charity Look Good… Feel Better, which helps women manage the visible side effects of cancer treatment. The event raised almost £400.

SUNDAE BESTBarrie Stephen Hair had a great time doing the backstage artist hair styling at three-day Leicester music festival Summer Sundae in August. The team set up a “pop up” salon and styled the likes of Dionne Bromfield, Newton Faulkner, McFly and Young Knives.

ANNE VECK AWARD

Congratulations to Oxford salon owner Anne Veck, who won two major awards at the Haute Coiffure Française Awards in September. Competing for the UK Anne won the L’Oréal Produits Professional du Haute Coiffure Française Trophy 2011 and the International Talents Trophy of Haute Coiffure Françoise 2011.

ISHOKA FUND-RAISERAberdeen salon Ishoka Hair and Beauty has raised £6,500 for children’s charity the NSPCC during the past year. The salon, which each year nominates a chosen charity, gathered the money through a series of fund-raising events, including charity days, raffles, a prize draw and the sale of Christmas decorations.

CAROLE HUGHES: SALONS STRUGGLING TO PAY BILLS

ED BALLS: VARIABLE VAT CALL


The days of salons having to buy music licences from two bodies separately could be consigned to history if a pilot that allows businesses to get licensed in a single transaction proves successful.

Music licensing is currently split between PRS for Music (PRS) and Phonographic Performance Ltd (PPL), with salons that want to be fully covered for playing music needing to buy a licence from both bodies.

But PRS has told SalonFocus the two organisations are now actively looking at ways to work together more closely “to offer a simpler licensing solution for customers and, where possible, enable joint licensing”.

A pilot is being evaluated under which firms can get total cover in one go, although PRS said this did not currently involve any hairdressing businesses.

Other moves to streamline and simplify the system are also being considered, with even the idea of businesses being offered a discount for buying both licences being mooted, although PRS stressed there were no plans for this in the immediate future.

Of the joint licensing plan, a spokesman said: “We think it makes it simpler for customers. They say it would be easier to have one licence to cover everything. All areas are being considered, including hairdressing.”

However, PRS has insisted no merger between the two organisations is planned.

“We are two separate organisations looking after two separate rights,” the spokesman emphasised.

The PRS licence ensures royalties are paid to writers and publishers of music while the PPL licence ensures royalties are distributed

to performers and record companies.

Both licences are required by salons that want to play copyrighted sound recordings.

Meanwhile, it is hoped an ombudsman complaints’ service for PPL customers will be in place by November. PPL first revealed this was on the cards to SalonFocus last summer (SalonFocus, May/June 2010).

A spokeswoman said: “PPL is committed to supplementing its existing process for responding to customer service feedback by introducing an external and independent complaints review service, which we hope to launch in the autumn... we do not anticipate many cases requiring the review service.”

PRS established an external complaints’ ombudsman more than a year ago but, to date, just three cases have been referred, and none has involved salons.

PRS said: “If we do receive a complaint we look at each individual case very carefully to ensure that the music licensing system is delivered fairly and equitably.”

Irrespective of the administrative burden, the benefits for salons of having music in the background or while clients are on-hold can be immense, according to Mike Cook, head of production at PH Media Group, which specialises in on-hold messaging and in-store music for companies including Toni&Guy and Trevor Sorbie.

“Playing music and marketing messages to clients waiting on hold is another innovative and cost-effective way to promote services to potential clients when they call and get return on investment on your licence fee,” he said.

EDMONDS’ HOUSELondon hairdresser Paul Edmonds has opened a dedicated beauty annex at his eponymous Brompton Road salon. The House offers facials, semi-permanent make-up, complementary treatments, massages and manicures.

THIRD ZEN

Zen Lifestyle, the beauty spa salon chain owned by Fiona and Kieran Fowley, has opened its third outlet in Edinburgh. The salon, on Hanover Street in the city, will offer express manicures, an eyebrow and lash bar, a skin clinic and private spray tans.

NEW ‘MAVEN’Nergish Wadia-Austin, founder and chief executive of the PHAB Standard, has joined the beauty consultancy Project Maven. The company helps individuals bring beauty-related products, brands and services to market. Nergish will work for the organisation as an “industry maven” or trusted beauty expert able to pass on knowledge and advice.

AFRICOLOGY SPALondon hair salon Bloww Hair and Urban Spa has opened a new beauty spa. The spa, located beneath the salon on Regent Place, is believed to be the first UK spa to offer the South African spa brand Africology. Clients are as a result able to try holistic treatments and ethical spa products using ingredients such as rooibos, African potato and marula oil.

SHAVING WORRIESNearly half of men feel they do not know how to shave properly, according to research by shopping channel QVC. One in ten also cited dark circles under their eyes as being their biggest concern about their appearance. Separate research from market researcher Mintel, meanwhile, has suggested UK spending on men’s skincare products and ranges grew by 20 per cent between 2005 and 2010.

BEAUTYSPOTSNEWS

PLAN TO SIMPLIFY MUSIC LICENSING

MIKE COOK: OFFER MUSIC WHILE ON HOLD

BEAUTYSPOTS


NEWS

STAFF CONTRACTS RATED TOP NHF BENEFITStaff contracts have once again topped the Federation’s annual “satisfaction survey” of members.

The industry-standard contracts are consistently rated as one of the most valuable benefits of NHF membership, and this year nearly 60 per cent of members who responded gave the service offered a “six” or “excellent”, the highest rating possible.

The Legal Lifeline was considered the second most valuable member benefit, rated a six by 54 per cent of respondents.

SalonFocus, in the wake of being named “Publication of the Year” by the Trade Association Forum in the summer, was just pipped to the post for that place, being valued as a six by 53.7 per cent of those who responded.

Other benefits that rated highly included tribunal insurance, the Federation’s salon stationery and contact with head office. The Legal Lifeline and contracts’ support were also considered the most important services provided.

The survey provided a valuable snapshot of the NHF’s membership, with virtually all offering either men’s or ladies’ hairdressing or both, nearly a third adding beauty services and nail bars and more than a fifth offering some form of massage service.

Holistic therapies and spa treatments were less common, offered by 8.1 per cent and three per cent respectively of members who responded to the survey.

More than half employed one to five people and nearly a quarter had a staff of between six and 10. Just 5.2 per cent employed more than 25 people. Nearly two thirds, 64.4 per cent, were now VAT registered.

In a separate development, two Exmouth Federation members won a cash prize in September simply for filling in the NHF’s membership survey.

Tina Caswell and Caroline Poulter, owners of Castina Hair Studio, won £200 for filling in the survey, with their names being drawn out of a hat by NHF membership committee chairman Alan Rapkin.

“I was very surprised when I heard we’d won, as I did not even know mum had entered!” said Caroline.

“I’ve been a member for more than 30 years and the NHF provides so many benefits it can really make a difference for salon owners, especially when times are tough.

“But I never thought we’d actually get paid for being part of something that’s such good value for money anyway,” she added.

The NHF has formed a partnership with a leading health and safety company to provide a new online tool to ensure salons remain compliant with the UK’s increasingly complex health and safety regulatory landscape.

The partnership with Sypol has led to the development of Salon Sorted, an online tool specifically for NHF members and which is designed to enable members to manage health and safety compliance issues from their computers.

Salon Sorted is available to NHF members for an annual price of £20 plus VAT. More information can be found at www.nhf.info/SalonSorted or by getting

in touch directly with head office.The programme allows members to

create risk assessment documents for their salons and provides an “audit trail” for their mandatory responsibilities.

Other benefits include access to a help desk, regularly updated and easy-to-follow statistics, guidance notes, downloadable documents and risk assessment summaries.

“This partnership with Sypol demonstrates how seriously the NHF takes health and safety compliance. It not only enhances the credibility of the Federation as an organisation but is, of course, a valuable extra benefit for

members at a time when salons need all the support they can get,” said Vanda Bell-Preston, partnership development manager.

HEALTH AND SAFETY TOOL TO GET SALONS ‘SORTED’

SURVEY WINNERS: CASTINA HAIR STUDIO

SALON SORTED: NEW MEMBER BENEFIT

SALONFOCUS: VALUED BY MEMBERS


CUTTING BRIEF

YOUR LEGAL PROBLEMS

SOLVEDWe have a small salon which offers parking for our staff. However, are we required, by law, to have disabled parking facilities?There is no legislation that requires you to have disabled parking spaces. However, under the Equality Act you would be required to make reasonable adjustments so that individuals with a disability were able to access the salon.

This includes an obligation to make adjustments for staff as well as visitors to the building. If you found that parking for people with disabilities (or for those with any other access difficulties) was becoming a regular problem, then you should consider reasonable adjustments to address this.

In the case of a parking problem, you could consider identifying some parking spaces for people with disabilities as a reasonable adjustment and ensuring they remain free for such visitors at all times.

We have a stylist who has stated that they wish to opt back into the 48-hour working week under the Working Time Regulations. How much notice do they have to give?Under the Working Time Regulations an employee is only required to give seven calendar days notice to retract their agreement to opt out of the 48-hour working week. This is subject to any provision in the original opt-out agreement requiring a greater period of notice to be given, should the employee wish to opt back in. If this is the case, the notice cannot exceed three months.

We are in the process of preparing a reference for an ex-employee. What should and what should not be included? In terms of providing a reference, the organisation will be under a duty of care to provide accurate and factual information which is not misleading. In order to avoid contention it is better not to express personal opinions regarding an employee’s performance or conduct and it should only include information the employee is aware of.

The general points that should be included within a reference are:• the start and finish date of the employee’s employment with

the organisation;• the employee’s job title;• a brief description of the employee’s key duties and level of

responsibility;• other jobs that the employee held within the organisation

prior to the job he or she held at the date of termination, and the start and finish dates of these jobs; and

• a statement confirming the circumstances of the termination of the employee’s employment, in other words whether it occurred as a result of the employee’s resignation, dismissal, redundancy or expiry of a fixed-term contract.

In order to be consistent the reference provided should be in line with what the company would normally provide.

We have a junior who appears to be updating their social media page during working hours. This is averaging at between 20 and 30 entries per day. We believe they are doing so from their personal mobile phone on the salon floor. Is this

grounds for disciplinary action? While this could be grounds for disciplinary action, you should first consider your rules on personal phone/internet usage within working time. Is it expressly prohibited, or is a limited amount of use accepted? If use is allowed, is it restricted to a particular time of the day, such as during rest breaks?

Disciplinary action would only be reasonable if you can show a clear breach of company policy, or if it can be shown the employee has been failing to perform their role because of their excessive internet use. This is unlikely to be the case if limited internet usage is permitted or it has not been addressed by the company before.

However, once you have established that there are grounds for disciplinary action, I would recommend having an investigation meeting with the individual. It could be that the employee argues they make the entries during their break time.

If this is the case, you will need to have specific examples of when they made the entries, with times. If the employee’s break is stated in their contract of employment as being at a particular time and or of a particular length then you will need evidence to show that the entries were made outside of the allotted break time, for example that they were spread across the whole day.

Gillian Dowling from Croner, operator of the NHF’s Legal

Lifeline, answers your questions

WHAT THE LEGAL LIFELINE OFFERS YOU:• 24/7 employment-related queries• Advice on commercial matters, 9am-5pm Monday

to FridayAccess to the Legal Lifeline is available by calling 01234 834389. Alternatively NHF members can log on to www.nhf.info.

A full summary of cover can be found on the reverse of your legal card carrier or by logging onto to www.nhf.info/membershipbenefits/legalsupport.

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.

INSPIRED

AmericAn BeautyClipso’s lATEsT CollECTioN, AmEriCAN VACATioN


Hair: Clipso ArTisTiC TEAm art director: DArrEN FowlErPHotograPHy: mArTiN EVENiNgStyling: KArEN BiNNsMake-uP: JANET FrANCis

SALONFOCUS SEPTEMBER/OCTOBER 2011PAGE 18 SALONFOCUS SNOVEMBER/DECEMBER 2011


FEDERATION

FOCUS

The teams for the new NHF Inspire and Barbers Élite teams for 2012 were announced in September, following a round of competitive auditions held in the grand setting of Mayfair House in London.

For Inspire, a short-list of 11 stylists was auditioned, with each bringing their own model and having just 40 minutes to deliver and create an editorial/consumer female look suitable for a front cover for either a hair trade or Glamour-style magazine.

The stylists were also required to do a presentation with their model to the judges along with a short interview.

For Barbers Élite, the short-list comprised 12 stylists, each of whom had a similar challenge to the Inspire candidates, but in their case 45 minutes to deliver and create an editorial/consumer “cover” male look, such as GQ.

This, again, was followed by a presentation with their model to the judges and a short interview.

The judges for the day were James Beattie, manager of Barbers Élite, Rebecca Dickenson manager of Inspire, RUSH artistic team member Sam Burnett and Sam Grocutt, managing director of Essence PR.

The new members for both teams will be involved in editorial photographic shoots, seminars and educational shows.

The Barbers Élite team will formally launch in 2012, will be led by James Beattie and will be looking to raise national standards of local barbering.

Rebecca Dickenson said all her candidates “were absolutely amazing and it made it very hard for myself and the other judges to come to a final decision”.

James Beattie added of his team: “Everyone who auditioned was very talented and really passionate about their craft. It was a very hard decision to make but myself and the team can’t wait for next year and the team’s journey to begin.”

The current Inspire team attended an educational cutting day with award-winning RUSH international artistic director Andy Heasman in September, as part of the RUSH art team’s mentoring year.

The day included two live demonstrations by Andy showing different cutting concepts, a talk through the history of the team’s philosophy and discussion around the basics of cutting, cutting lines and cutting techniques.

An afternoon session saw the Inspire team cutting and styling live models themselves under Andy’s guidance.

By Stephanie Munno

TALENTED TEAMS FOR 2012

SUCCESS: THE NEW BARBERS ELITE TEAM

NHF InspireEmilie Pearson Brown

•(Clipso, Watford) Aneta Kucinsha

•(Anne Veck, Bicester) Martin Crean

•(Mode, Chipping Camden)Colin Knight

•(Sean Hanna, Cambridge)Donna Mitchell

•(Bonce salons, West Midlands)

Casey Coleman •

(Oceans Hairdressing, Cardiff).NHF Barbers ÉliteAlan Findlay •

(Rebel Rebel, Glasgow)Martin Fox •

(Scarlett Noon, Middlesbrough)George Knight

•(Colonel Mustard, Bristol)Matthew Evans

•(Goldsworthy’s, Swindon)

Anthony Burgess •

(Image Barbers, Bedford)Jason Churchill

•(Yoshimi, Cheam) Jennifer Savva

•(Image Barbers, Bedford).

The 2012 teams

ACCOUNTING BENEFIT LAUNCHED The Federation’s new >Onlinebooks accounting package was formally launched in October, with head office quickly reporting a high level of interest from members.

The package, which offers a suite of accounting services tailored specifically for the NHF by accountancy firm Kingston Smith, went “live” following a pilot among selected members.

The system was also demonstrated at the annual general meeting and conference in Newcastle in October.

The price for the package starts from as little as £26 per month, and more details can be found by going to the Federation’s website www.nhf.info/onlinebooks

´

The 2012 teams

HARRY WALKER RETIRES FROM NHF

NHF immediate past-president Harry Walker has now retired from active involvement in the Federation.

Harry completed his final year as an NEC member in September and was national president from 2007 to 2010, passing over the reins of office to Mark Coray at last year’s conference and annual general meeting in Dundee.

“It was my privilege, my pleasure and joy during my term of office to reach the amazing stage in our history and I sincerely thank all the delegates representing the entire membership for their unanimous support throughout my presidency,” he told SalonFocus.

“My biggest challenge on entering the presidency was how to set about the changes needed to bring the organisation up-to-date in a more modern society,” he added.

Along with secretary general Eileen Lawson and a leadership group comprising Mark Coray, John Armstrong, Alan Rapkin and Colin Gardner, Harry led the development of the Federation’s ground-breaking Strategy for the 21st Century.

“My time to leave has arrived with a little sadness, but I am happy to see that Mark in the driving seat is following the strategy and I wish him well.

“Finally, I could not have achieved my ultimate success without my driving force, my heartfelt thanks to my wife Avril,” he added.

HARRY AND AVRIL WAKER: THANKS FOR SUPPORT


London Region held its first Business Forum at the DeVere Conference Centre at London’s Canary Wharf in September.

The event was designed to bring together NHF members to share business ideas and listen to a variety of specialist speakers.

Speakers included Vanda Bell-Preston of Sypol who explained the NHF’s new members’ health and safety tool-kit Salon Sorted (see News, page 14).

Head office’s Tina Beaumont-Goddard delivered a presentation on the pros and cons of chair and room renting in today’s marketplace, including demonstrating the need for sound management control.

Salon owner, retail expert and zoo-keeper Mikaela Martin gave a talk on front-of-house image, the importance of good communication and effective strategy for the salon industry.

Finally, Ian Egerton from ICO Management Services presented an insight to how salons can use their salary and payroll software to help them manage their staff and improve salon performance through benchmarking their stylist and sales performance.

London Region will host its next event in March. To register for more details please email Alan Rapkin on [email protected]

SUCCESSFUL LONDON FORUM

IAN EGERTON: SALARY MANAGEMENT


The run-up to Christmas is traditionally an extremely busy time for salons, with everyone wanting to look their best and get their hair cut, coloured and styled ready for the seasonal celebrations. At such an important time for clients, and commercially, it is therefore vital to be prepared.

For the salon owner there needs to be two priorities: ensuring business booms in the run-up to Christmas and that you manage this extra demand effectively and, just as importantly, that you are anticipating how you are going to maintain business during the often quieter New Year period.

Here, then, are my top tips for ensuring your salon makes the most of the festive period:

Plan aheadChristmas happens on the same day every year, so make sure you plan ahead! This needs to be not only what you’re going to do for clients, such as retail evenings or selling Christmas sets, but also team hours and roles, and when hard-working staff will get a break.

Assign staff responsibilitiesIt’s all very well thinking amazing plans for your Christmas/New Year activities but you need to make sure they actually happen!

Assign tasks to different staff members, for example marketing, décor, budgeting, timelines and managing the database. Ensure, too, staff members are aware of their individual responsibilities, budget and timeline and, most importantly, stick to them.

Create a festive atmosphere… but not too earlyTo avoid irritating clients, don’t implement anything Christmassy too early. At our salon, the majority of our clients tend to come on a six-weekly basis, so we aim to begin putting up decorations, dressing the windows and playing Christmas music from mid-November onwards, so they’ll only see them once.

Also, rather than the traditional choices such as Slade or Wizzard that clients will hear everywhere they go, we put together our own original playlist of Christmas songs.

Create Christmas “retail hotspots”A great additional revenue stream at Christmas can be retailing sets provided by your chosen brand (see panel).

Create product “hotspots”, displaying the sets in key client areas to catch the customer’s eye in a subtle way. As we have a large salon floor, we have a few strategically placed retail areas throughout the salon displaying our Matrix Christmas sets, to encourage sales.

Always ask yourself: “will it make people shop more?”Without clients our salon wouldn’t exist, so while it’s important to keep them revisiting, at the same time, you have to remember that you’re running a business.

It can be so easy to overspend during the festive period but to rein yourself in, always ask “will this make people shop more?”.

While decorations will put clients in a festive mood, if you spend £1,000 on them, would it make people spend more than if you just invested £150 in sprucing up the salon?

If the answer is no, assign a realistic budget and stick to it to avoid overspending without seeing a return.

Don’t forget to encourage customer loyalty in the New YearMost salons find Christmas takes care of itself in terms of appointments, as clients delay booking in until December and consequently it’s January and February that are very quiet as people are feeling the pinch after overspending on presents and parties!

So, don’t sacrifice valuable pounds where it’s not needed by offering promotions around Christmas.

Reserve them for the New Year instead. We send out branded Christmas cards to our entire client database, including a money-off voucher redeemable in January/February.

This helps to turn what would be the salon’s quieter period into a more prosperous one, starting your business out on the right foot for the New Year ahead.

Christmas is traditionally a busy time for salons, but getting the most out of the festive season (and the quieter New Year) can take careful planning, advises Paul Falltrick.

CHRISTMAS CHEERPaul Falltrick is owner of Paul Falltrick Hairdressing and Academy in, Romford, Essex and artistic director for Matrix

ADVICE

WHOLESALERS AND SUPPLIERS CAN HELP A key part of your Christmas strategy should be speaking to your product supplier and wholesaler about festive gift packs, explains Richard Fincher of wholesaler Aston & Fincher.• Clients are likely to be in “buying”

mode so they may be more inclined towards any retail zone.

• But make sure to site retail where clients can easily get at it.

• Keep an eye on stock levels; you can’t sell what you don’t have!

• People often don’t like to ask, so make sure gift packs are clearly priced.

• Use window displays to attract passing trade and encourage new customers into the salon.

• Consider running a training session for staff to build up their product knowledge and boost their confidence when it comes to talking to clients.

SALONFOCUS NIOVEMBER/DECEMBER 2011

With a bit of planning, enthusiasm and a great “story”, getting your name in the media need not be as

daunting as it first seems, explains Sam Grocutt.

MEDIA MANAGEMENT

Sam Grocutt is the managing director of PR agency Essence PR and has specialised in the hair and beauty sector for more than 15 years. She is also the PR for the NHF’s Inspire artistic team.

MARKETING

It’s sometimes described as a “dark art”, but public relations is really very simple: it’s about generating a good image for yourself and your salon by creating publicity and “buzz”.

Before making any decisions you need to think carefully what it is you are trying to achieve; what will be the end goal, what audience do you want to reach. Also, what is it for: is it about building a reputation, creating awareness around a new service or offer, supporting a specific event and so on?

When selecting a PR agency, it’s an idea to meet a number of agencies – three is probably a minimum – to get a feel for what each of them can do for you, the time they will be able to dedicate and their past experience of your industry.

RIGHT FITWith PR, it’s very much about finding the right fit – you need to really understand each other and work well together.

Agencies vary in size, from small boutique outfits to large corporate players. There are pros and cons to using each. Larger agencies can be more expensive and perhaps less personal

but may have more resources and “stretch”, whereas smaller agencies may be more like an extension of your own business and can work to smaller budgets.

The costs, too, inevitably will vary, as will whether you decide to pay a regular “retainer” or simply have them bill per job or project. A good rule of thumb, however, is perhaps £700 per month for a basic PR campaign.

The Fellowship for British Hairdressing

and industry bodies such as the Chartered Institute of Public Relations or CEW UK can be good places to go to for advice as well as going online.

Remember, too, PR does not always need an agency – often just being proactive and “thinking media” will open PR doors.

THINK VISUALWhen it comes to local papers – which often love hairdressing salons because they are very “visual” – you need to be the person the editor thinks about when they’re writing an article.

So, think about what your local publications are or ask customers what they read/listen to. Then get in touch – you could even invite them in for a complimentary appointment, though don’t go mad with this.

Journalists need something newsworthy, informative or trend related. Just because your salon is busy or you are opening a new outlet normally isn’t enough, there has to be a “hook”.

A local “feel good” story can be one option, perhaps supporting a charity, winning an award or styling a celebrity’s hair, for example.

A powerful picture story or even just flagging up an upcoming picture opportunity can be a relatively easy way to get a lot of positive column inches

quite quickly. The offer of a reader makeover can be another “quick win” in this context. For the more artistic salon “face of” campaigns can be great PR opportunities as well as open up a host of potential models.

Finally, if you’re feeling brave enough to sit down and write a press release yourself, remember the key journalist questions are “who, what, where, when, why, how and how many”. Keep it brief, clear and to the point – one simple message is better than trying to cram in all your news at once.

PUBLICITY: YOU TOO COULD BE FEATURED

FINDING THE RIGHT PR COMPANYHowever big or small the company behind them, a good PR executive needs to be on your wavelength, advises Johnny Paterson, director of PR firm Catalyst Consultancy.

The internet has made finding a PR company both easier and more complex.

It’s easier in the sense you can find hundreds of organisations offering PR services at the stroke of the key. It’s more complex for exactly the same reason – how to sort out which one is right for you.

I would recommend Googling industry key words – perhaps “hair salon PR”. Ideally you should go for a specialist PR company with a consistent, proven track record in professional hairdressing.

Second, get recommendations – speak to a hairdresser who has experience of PR companies.

Also, consider whether you just want PR or are you interested in graphic and website design, search engine optimisation and more general marketing? If so, does the firm have the capacity or expertise to provide this?

Most PR firms will offer an initial consultation for free so don’t be afraid to get in touch. Great PR is about developing a close relationship, a genuine bond of trust.

HUNT?


BARGAIN

Merging with or snapping up another salon is by far the fastest way to grow your business.

The obvious benefits are that it will (or should) bring with it a pre-existing customer base and it is likely there will be trained and knowledgeable staff members already in place.

Moreover, in a difficult economic climate where only the best run firms are surviving, there may be more “distressed purchase” bargains coming up for sale on your high street.

But any purchase, especially where your target is a business that has run into trouble or failed completely, has to be carried out with extreme care and a lot of forward planning.

Get it wrong and there is a risk of damaging or over-extending your own business or, in the worst case scenario, biting off more than you can chew and ending up an acquisition target yourself.

Before even starting to look for suitable

targets you need to be sure your own business is ready and able to take on buying and integrating a new business. Just as it is vital to plan ahead when it comes to selling (see panel) so it makes sense to take your time and make sure you’re ready when looking to make an acquisition.

The government’s business advice service BusinessLink (www.businesslink.gov.uk) has an extensive advice section on the ins and outs of acquiring businesses, which may well be worth visiting at an early stage.

It is vital to keep a cool head when gauging potential targets and to be prepared to walk away. A bad fit, whatever the price, is still a bad fit, however much you might have fallen in love with the idea.

Similarly, while a distressed purchase may appear to be a bargain, you have to ask yourself whether you have the skills and experience

With the high street in crisis there may appear to be plenty of bargain-basement businesses for sale. But buying up a rival salon, especially one that’s been in

trouble, should be carried out with extreme care, advises Wayne Kranz.

ADVICE

Wayne Kranz is managing director of salon management and consultancy firm Nexus Revolution.


necessary to turn such a failing business around. There may well be, for example, extra costs associated with repositioning, rebranding and remarketing the business. Look closely too at why it failed – was it a factor beyond the control of the individual management, such as its location being in general decline, that will be a tide you too will struggle to swim against?

VALUING YOUR TARGETHaving done the groundwork you need to work out what the business is worth and what you should offer. This can be harder than it appears. Consider these points when weighing up what your target is worth:• Its location. Businesses near cities normally sell for more

than rural areas, because of the volume of passing trade and accessibility. This affects rent. So aim for the lowest rent in the best location. Obviously, the higher you pay, the higher passing trade there needs to be.

• How secure is its lease? Is there adequate time to provide future income streams? For example, a five x five x five-year term (in other words, 15 years) is better than having only two years left on your lease with no option to renew.

• What sort of state is the premises in? Will you be able to continue trading immediately or will you need to bring the quality up to standard?

• Is it computerised? A good point-of-sale system can show what clients have done historically and how the team performs. The strength of the database will determine the value of the salon’s goodwill.

• What is the profit versus the turnover? Calculating the price of a salon is more about profit (how much is left after bills and wages, including the owners, are paid) than turnover (sales). The more profit left, the more it is worth, because it will pay back your return-on-investment sooner (ROI).

• On that, what kind of ROI might you realistically expect? An expectation of 25-50 per cent ROI would mean a business earning £100,000 a year turnover should sell for between £200,000 and £400,000.

DUE DILIGENCEGood preparation and due diligence, or uncovering all liabilities associated with the purchase and verifying any claims made, are absolutely imperative. The bare essentials you should look for when considering buying an existing salon are:• Profit and loss statements/accounts for the past three years,

including year to date.• Computer reports that match the same dates as the profit

and loss.• Payroll and current employment contracts, including rate

per hour, when started, position and status (for example full time, part time or casual). Who, too, are the “key” people, and will they be staying?

• Photographs, as many as possible internal and external to support evidence of what’s to be included in the sale.

• A depreciation schedule – this is a list of the value of equipment and is usually available through the accountant’s office. You should gauge, too, any outstanding debts, financial commitments, work in progress or future prospects.

• Plant and equipment list – this needs to be a list of all things included in the salon sale.

• Any rented or leased equipment – for example computers, coffee machines, cars and so on, and you will need the lease or rental agreements on each item.

• Copy of the full lease with any amendments or assignments made. This needs to be signed and stamped.

GET ADVICEThroughout it is a good idea to talk to salon specialists: consultants, agents, financiers, legal experts and so on

Most financiers may offer free advice in appraising a business’s value. Another source of advice can be your accountant, though bear in mind they may not necessarily specialise in this area.

Legal advice from a specialist corporate lawyer is very important, so it is worth getting them on board early.

Finally, remember signing on the line is only the beginning, the point at which the hard work really begins! Recognise, too, getting the new business up and running may be a challenge and time-consuming, but it is vital not to take your eye off the ball of your existing business either.

HOW TO “SELL” YOURSELF TO A BUYERIt may be a buyers’ market but, for those looking to sell up, there are also important steps to take, advises Darren Cooper, director of the Essex office of specialist salon business transfer agent County Business Sales.

Before you even consider putting your salon on the market, ensure your paperwork is in order, including being able to show three years’ accounts and the basic terms of your lease.

A typical salon should achieve a final selling price of approximately 1.5 times its adjusted net profit, although, of course, factors such as location, length of lease, quality of fixtures and fittings and specialist equipment can adjust this up or down.

When it comes to attracting likely purchasers you can do it yourself. It may be, for example, that a member of staff is keen to start their own business. You can also try placing adverts in the trade press or one of the many business sales websites. Bear in mind, however, this can be time-consuming and mean you have to handle the transfer yourself.

Another option is to instruct a business transfer agent. The advantage is they will know the market, pay for all advertising and deal with interested parties.

They can also act as the liaison between you, your solicitor, the purchaser, the purchaser’s solicitor and the landlord and landlord’s solicitor. From offer to completion should take between two to three months.

Business transfer agents work in various ways, some charge up front while others operate a no-sale, no-fee policy. Beware of agents who inflate the value of your business simply to extract an up-front fee from you.

Good tips are to ask for references and Google the agent’s name with the word “complaints” after it to see if any clients have not been happy.

Ask, too, if whoever visits the salon will be the same person who works on your file or will you be dealing with a faceless individual at a call centre?

We’ve been based in Henfield, which is a village 12 miles north west of Brighton, since December 2007, but we get a lot of clients who travel out to us from the city and so are used to stylish, artistic, cosmopolitan and creative salons.

We’ve tried to give our salon a bit of a quirky feel, including making a reception desk out of a converted vintage Mini! We’ve also made a point of offering services to suit all age ranges, with six expert stylists.

In the scheme of things it may be a small touch, but being able to offer high-quality tea and coffee is, for us, part of the whole “experience” for clients of coming to our salon.

I decided right from the beginning to install a quality hot drinks machine as I hate poor coffee. If my clients want a hot drink, I don’t believe they should have to make do with anything but fresh ground coffee, real leaf tea or hot chocolate that reflects the quality of everything we do in the salon.

SHOP AROUNDAfter looking at a number of options, we decided to go for a Flavia machine from Kafevend. Our reasoning was that it offered a broad range of good-quality drinks, including cappuccinos, mochas and lattes, was easy to keep clean and (very importantly for me) could be sited

in a small space and did not need to be plumbed in, although it is possible to do that if you want.

Beyond the machine itself there were a number of other factors that “sold” it to us as a concept.

For us, constantly having to boil a kettle for clients was time-consuming – especially considering the fact some of our clients are in the salon for a number of hours and so are likely to need a number of drinks – and it did not feel at all eco-efficient.

We also wanted something that was hassle-free. With a good coffee machine you get a reliable supply of drinks and associated products pretty much on tap.

We’ve only ever had one problem with our machine since it was installed and the service technician arrived to fix it almost in the amount of time it took to boil up the kettle!

On the issue of maintenance, it is vital to go for a reliable supplier that can offer a fast turnaround, especially around re-supply.

We know that if we place an order for drinks either by phone or online before 3pm, the supplies will be with us the following day. We find the staff at Kafevend are always helpful and efficient, which of course makes life a lot easier.

FUNDING OPTIONSWhen it comes to money, there will normally be various options open to you.

You can purchase the machine outright, with the figure obviously varying depending on the size and model of machine, but the list price for a Flavia, for example, is £1,250.

If you go this route you will normally have to pay separately for your drinks, cups, sugar and so on as you need them.

A second option is simply to rent the machine. Again your outlay here will inevitably vary.

WAKE UP AND SMELL THE COFFEE

If you read nothing else read this…

A hot drinks machine may save •hassle, time and energyBe clear about maintenance and •resupplyThere will normally be various •payment options to choose fromIt can encourage customer •loyalty and retention

A bespoke drinks’ machine will never be the prime reason why someone chooses a salon, but it may

help to keep them coming back, says Karen Gold.

Karen Gold is co-owner, along with Neil Cox, of NK Hair in Henfield, Sussex.

EQUIPMENT


A third option is to pay only for the drinks. Under this plan you incorporate the cost of the machine and a specified number of drinks appropriate to your business needs into a fixed monthly charge, so removing any upfront capital outlay and making budgeting and cashflow much easier.

We then build the cost of the machine and its running into our salon prices, so ensuring our costs are covered.

As our clients have been extremely happy with the quality of beverages on offer it’s a win, win situation.

Obviously, a coffee machine is not going to be a “deal breaker” when a client is deciding what salon to go to.

But it is an important element of the overall customer experience and can help build and retain loyalty. At the end of the day it is one more thing that helps us to keep our clients coming back time and time again, and nothing is more important than that.

THE

BEVERLY C COLUMN

I’m sure you’ll agree 2011 has whizzed by! For me, it’s mostly because I have been incredibly busy (as usual), and found myself travelling the length and breadth of the UK, to Europe and across the pond to New York, all in a matter of weeks!

At the start of the spring I kicked off a UK tour with Goldwell to headline their Colour Regeneration Tour, alongside my good friend and colour guru Mark Leeson. Goldwell has been celebrating 25 years of the Colourance range this year – a fantastic milestone – and I was very pleased to be part of it all.

The tour saw us present to more than 800 hairdressers over 10 weeks, with a focus on how to revamp in-salon colour services, new techniques, consultation tips and advice on how to increase profits with simple changes to a service menu. It also provided the perfect opportunity for me to introduce my I-Conic Collection, which I shot at the beginning of the year.

MENTORING WORKSHOPSFollowing the tour, I embarked on one-on-one training workshops with individual salons, evaluating their business, services, strengths and weaknesses and coming up with plans to help them boost their profits.

This has proved to be a very effective business tool for those we have worked with – there’s so much competition out there and inevitably, because of the economic climate, salons need to work that bit harder in order to attract and keep both old and

new clients. Poland was my next stop, where I

presented to more than 300 hairdressers, and then it was back to the UK to put together lots of step-by-step videos for BaByliss for their website.

Step-by-steps and how tos are an internet sensation, attracting hundreds of knowledge-hungry women so they can learn how to use the tools of our trade and achieve the latest look.

These short videos are also a great way to attract potential clients to your website and can help clients to understand a bit about the services your salon provides, the environment of your salon and what they can expect when they visit you – I would recommend any salon has a go at it!

The end of the summer saw the incredible Goldwell PlayStrong Summer party take place in London, where even the riots failed to dampen our spirits.

I presented my key look alongside looks from my fellow Goldwell

ambassadors Lisa Whiteman, Michael Barnes, Shane Bennett and Mark Leeson and was pleased to hear the event raised more than £2,000 for Great Ormond Street’s HairRaising appeal.

CHRISTMAS CAMPAIGNI then flew off to New York to shoot a TV advert that is going to be released globally at Christmas to launch the latest innovation from BaByliss. Unfortunately, I’m not at liberty to announce what the product is yet but I’ve no doubt it will be on many Christmas “wish lists” and there’ll be lots of tussled tresses in the wake of its launch. Speaking of products… My product line is looking fabulous and is raring to go! We’re just awaiting a launch date. So the run-up to Christmas looks as though it’s going to be equally busy for me.

On top of this, I’m set to be filming a follow-up documentary about the successes of the past winners of BBC’s Young Hairdresser of the Year with Adee Phelan. I’m extremely proud and pleased to see those who have won in the past two series have used it as a springboard for further successes, including more industry awards and great prominence in our industry media.

Finally, I’m looking forward to seeing a new wave of colour hair trends hit our streets now the new season is in full swing – copper reds, mocha brunettes and bright blondes – colour is definitely making a strong a vibrant statement this autumn/winter and it’s a great time for us hairdressers to show off our wonderful skills!

Here’s to a happy and profitable Christmas… Look forward to catching up with you all in 2012.

Hairdressing icon Beverly C has twice won the British Hairdresser of the Year Award and she was the first female hairdresser to be awarded an MBE. She is a brand ambassador for Goldwell and BaByliss, and she is a regular face on TV and in the press.

COLUMN

MONEY RAISER: BEVERLY PREPPING A MODEL AT THE PLAYSTRONG SUMMER PARTY


14NOVCheshire Championships Romiley Forum Theatre,StockportContact Ian Barrell on 0161 4276953

14NOVCompetition Awareness Evening Darlington CollegeContact Avril Walker on 01642 591466

20NOVSouth of England Championships Novotel, Southampton Contact John Light on 01794 521849

20NOVYorkshire Championships Chicago’s Night ClubHalifax Contact Phil Cooling on 07816 306305

2-7DECClothes Show Live, Birmingham NECContact www.clothesshowlive.com

11DECNorth West Region Annual Christmas Lunch Ribchester Arms, PrestonContact Ken or June on 01253 895711

2012

21JANWhite Rose Dinner York Race Course Contact Glen Jackson on 01904 635877

26FEBRed Rose Championships Swallow Hotel, Samlesbury, Preston Contact Ken or June on 01253 895711

11/12MARBlackpool International Hairdressing Championships Wintergardens, Blackpool Contact Cheryl Swarbrick on 01253 343723 or (evening) Eileen Clough on 01253 406834

1APRNorth West Region and Networking Group AGM Holiday Inn, LancasterContact Ken or June on 01253 895711

1/2APRPro Hair Live, Manchester CentralContact www.prohairlive.co.uk/

22APRBournemouth & Reading Competitions, Carrington House HotelBournemouth Contact Lee Elliot on 02380 227578


EVENTSNOT TO BE MISSED...

NHF EVENTS

OTHERS

Please send your events to the NHF at [email protected] by November 11 for January/February 2012, January 13 for March/April 2012 and February 29 for May/June. Updated events listed on www.nhf.info

“Murdochgate” attracted much banter on social networking site Twitter over the summer.

Some of it, inevitably, was downright malicious, perhaps understandably in light of the scale of the mobile phone hacking revelations. But one Tweet in particular, about a certain flame-haired former News International boss, caught Backwash’s eye.

“Breaking News: Hacking latest, Rebekah Brooks has been arrested and charged with crimes against hairdressing.”

Bringing hairdressers down to the level of journalists? Now that’s a low blow!

BACKWASH

FLAMING CHEEK


Ever tried to see the Mona Lisa for real? Last time Backwash went to the Louvre in Paris to see Leonardo da Vinci’s masterpiece he could barely move for the throngs of (mostly Japanese and Italian) tourists squashed around the surprisingly small painting.

Undoubtedly he would have been much better off hoofing it down to Easy Hairdressing in Wickford, Essex, where owner Andy Morris has created a replica of the world-famous painting on the wall outside his salon.

The initiative came after Basildon Council forced Andy to remove a previous mural, a more mundane affair showing a man holding a pair of scissors under the salon’s name, which council officers had deemed to be an unlawful advertisement.

To be fair, Andy, 50, did not get out brushes and palette himself but asked a local artist to do the deed. He also told his local paper he is now encouraging other locals to come up with designs, at £1.50 a go, with all money going to the armed forces’ charity Help for Heroes.

Bureaucratic pen-pushers inadvertently adding to the cultural good of the nation and raising money for a good cause? Quelle surprise!

ESSEX CULTURE

Beauty industry jobseekers could not believe their luck when the position of “nail technician” was advertised in a local newspaper in Stoke-on-Trent.

More than 20 Staffordshire youngsters applied, including newcomers to the business, who were encouraged by the ad, which said: “Previous nail experience preferable but not essential.”

Sadly, it ended in tears. The advertiser was a builders’ merchant that required masonry nails to be sorted into their different sizes.

Backwash has discovered the perfect Christmas gift for the favourite hairdresser in your life.

Whose Hair? by Christina Christoforou consists of 200 hand-drawn illustrations of the hairstyles of the rich and famous, including film stars, politicians, dictators and chefs.

The challenge is to guess who the hair belongs to, with answers at the back for those who want to cheat or just no longer care by the end of Christmas Day.

The tome is a, er, snip at £7.95 or for more on-the-go fun publisher Laurence King is also offering an App whereby you can discover what you look like with celebrity hair for just £1.99.

Well it beats festive knitwear.

JUST WHAT YOU ALWAYS WANTED?

Every good entrepreneur knows that, in a tough climate, businesses have to diversify to survive but Backwash can’t help but wonder at the latest departure for Stanley Gibbons, up to now best known as a slightly fusty purveyor of philately, or stamps to you and I.

The company announced over the summer it was selling off thousands of individual strands of pop icon Justin Bieber’s (don’t scream girls) hair at £20 a shot.

Each strand, apparently, came with a photograph and certificate to prove its authenticity.

Stanley Gibbons, it transpired, had bought a bag of Justin’s locks from a dealer, who reportedly acquired it from Bieber’s hairdresser for a “large five-figure sum”, as a customer recruitment initiative.

Who’d ever have thought stamp collecting could be so, well, racy?

STAMP OF APPROVAL

If you have stories for Backwash, send them to the editor at head office or e-mail to [email protected] putting Editor Backwash in the subject line.

NAILING THE WRONG JOB

SalonFocus Nov-Dec 2011

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Transcript of SalonFocus Nov-Dec 2011