There’s no doubt that salons faced unimaginable challenges in 2020 and continue to re-evaluate how to do business; providing the right mix of services is a key factor in that process. Data from Kline PRO provides insights on the performance of salon services and retail products that can help map the road to recovery in the days ahead. Notable findings on salon services from our recent publication are:
Waving Services (Yes, Perms!)
If you wait long enough, everything comes back in style, and this seems true for perms. The start of 2020 saw an increase in perms and resumed in June when salons began to reopen.
- Q3 saw 16.7% more perm services than Q3 2019.
- Revenue was up 20.2%.
- The average price for a perm and cut is $91.54 (+2.2%); perm only is $78.59 (+3.3%).
Thinning Hair Treatments
Whether thinning hair is a direct result of COVID-induced stress or people are just noticing the issue more, clients are heading to salons to get help.
- The number of treatments is up 92.4% compared to Q3 YTD a year ago.
- The average price is $63.73, up 5.8% for the same period.
- All of this combines to show an increase in revenue of 103.6%.
Stylists are the experts, and salon shutdowns drove this point home when clients took DIY measures and had less-than-desirable results. To help customers determine their next steps after home mishaps, salons are offering both in-person and virtual consultations.
- The number of consultations has risen by 18.8% over Q3 YTD 2019.
- Interestingly, the average price of a consultation has dropped 38.8% from an average of $102.62 to $62.82. This is an opportunity for salons to capitalize on the value of their expertise and increase prices.
This service was off to a slow start this year, lagging 2019. Then salons closed, and clients took matters into their own hands. Starting in June 2020, both the number of services (save August) and revenue have shown an increase over the previous year. Once salons return to pre-COVID levels of operations, it is likely that the need for this service will subside.
- The average price has risen each quarter this year with a Q3 YTD average of $127.09, 12.9% more than the same period last year.
As mask-wearing became de rigueur, the focus on eyelash services increased. The uptick began in July and carried through the third quarter.
- The number of services were up 4.4% in Q3 2020 vs. YAG.
- Revenues were up 20.6% with an average price of $68.06 (+15.5% YAG).
There is still a way to go to recovery as many states continue to restrict salons’ operations in their effort to contain the spread of the coronavirus. But there is hope on the horizon as the rollout of the vaccination is in progress, providing states a path to allow business to resume.
Kline PRO is a comprehensive interactive database that enables users to access the latest performance data on the professional hair care industry in the United States and Canada. Based on actual salon transactions from a panel of thousands of salons, it yields category, brand, and product-level sales and service data on a quarterly basis.