How Hair Salons Stay Profitable In Thailand...

[thaidallover]

Interesting someone should bring this up.

I have a had a long term platonic friend who has run a successful salon for more than 15 years. Not a high end salon, just a rented shophouse but in a busy location. It’s like a mini communuty centre, a meeting place for girls to swap stories and eat noodles while waiting to get their hair done before going to off to work again.

Plus the main thing is the cooperative money lending is run out of these places, you have to be well know and trusted. But it seems to have softer side and much lower interest rates than the loan shark type that are run by those nasty looking guys who come to the bars collecting money from the girls. We’ve all seen them J

Edited November 3, 2013 by metisdead
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[markeewan]

Here is my real world example, my friend had a salon with a partner in the outskirts of Bangkok until the GFC hit and the customer base just dried up.

Up until that time they were paying about 5000 Baht per month rent and about 1000 Baht for utilities and about 10,000 Baht per month for supplies of hair and colouring etc. Income was about 56000 Baht per month for the two of them over a 12 month period.

From my calculation they used to earn somewhere in the region of 20-28000 Baht per month each working a 6 day week from 9am to 9pm and 9 customers per day between the two of them after all costs were deducted.

Some days they had to get up at 3am to go and do bride hairdo''s and makeup. This was usually extra pocket money and on top of the salon work.

Mostly the beginning of the day and end of day were busy but the middle of the day no customers came in. If they had done more marketing I think they could have significantly increased their turnover, if they could have filled in all the free time they had.

None the less, they were still getting a take home salary of 25000 Baht per month which compares pretty well with her niece who is a university graduate studying for an MBA and pulling less than 14000 Baht per month with an insurance company.

So what are they doing now that they shut the salon. They are both working in local evening markets, less hours (3pm -10pm), less days (5 days) and earning substantially more. The downside is that in the rainy season they don't sell much, but it is more than made up for in the dry months.

If you ever wondered how those market stall owners can afford those Toyota Hi Lux and SUV's, it is because it pays well if you can get the right market location and right product to sell.

I would definitely say that hairdressing is profitable, but like all businesses you need to compete with those around you.

[mesquite]

Not forgetting hair dressing salons are a traditional front for prostitution in Thailand.

(along with coffee shops)

I'll echo what others have said: I must be going to the wrong place to get my hair cut and the wrong places to get coffee.

[sfbandung]

I have two friends who own and run 3 salons on Soi Rang Nam. I was friends with them when they only had one around 2 years ago.

They both worked for Toni and Guy in Siam or Silom, forget which, for years and years, then as husband and wife set up by themselves.

From visiting their place for a chat almost daily while I lived there I would estimate a profit of about 15-20k a day. Working long long hours. They bought a 9m condo on Soi Ari, she has a mini cooper and him a 3 series, so they can't be doing too bad out of it.

Not sure what your friends are charging here,but Tony & Guy in BKK, in MBK about 6 years ago i paid 2700 baht for a hair cut, no wonder they can buy condo's and BMW's

Two weeks ago missus and I had our hair cut (shampoo, cut, blow dry) in MBK. Same level as the BTS walkway. 200 for me 300 for her ... 2,700? What did you have done?

[Jubes]

Figures vary of course to where you are situated but the biggest worry for hair salons i've noticed are having competent staff who know the right techniques an work with the right chemicals and tools, running a local hair salon is a very viable option if your missus owns and runs it with great staff (2 or 3) who can barber as well as be hair stylist. My gf runs hers in a well known tourist area and does quite well as bargirls to bank workers need to look beautiful as does ex pats who need their months haircut not to mention walk in tourists. Again all depends where you are to how much you can charge.

Sent from my HTC Incredible S using Thaivisa Connect Thailand mobile app

[DrTuner]

Not forgetting hair dressing salons are a traditional front for prostitution in Thailand.

(along with coffee shops)

Are you sure you're not confusing Thailand with China ? Thailand's got enough body massages, beer bars, karaoke bars, etc, etc, no need for such cloak & dagger.

[nontabury]

Not forgetting hair dressing salons are a traditional front for prostitution in Thailand.

(along with coffee shops)

Are you sure you're not confusing Thailand with China ? Thailand's got enough body massages, beer bars, karaoke bars, etc, etc, no need for such cloak & dagger.

Not saying that ALL hair dressing saloons offer this extra service, however quite a few do, some on a regular basis. Others just occasionally when they are short of a sponsor or money.

[Squigy]

My haircut costs me 10 Baht.. village barber!

[lemoncake]

I have two friends who own and run 3 salons on Soi Rang Nam. I was friends with them when they only had one around 2 years ago.

They both worked for Toni and Guy in Siam or Silom, forget which, for years and years, then as husband and wife set up by themselves.

From visiting their place for a chat almost daily while I lived there I would estimate a profit of about 15-20k a day. Working long long hours. They bought a 9m condo on Soi Ari, she has a mini cooper and him a 3 series, so they can't be doing too bad out of it.

Not sure what your friends are charging here,but Tony & Guy in BKK, in MBK about 6 years ago i paid 2700 baht for a hair cut, no wonder they can buy condo's and BMW's

Two weeks ago missus and I had our hair cut (shampoo, cut, blow dry) in MBK. Same level as the BTS walkway. 200 for me 300 for her ... 2,700? What did you have done?

Did you have it done at tony& guy in mbk? Or just a salon in mbk?

I was talking about tony& guy senior stylist is 2700 baht just for men's hair cut

[brit1984]

My haircut costs me 10 Baht.. village barber!

if that is really the price you paid the last time you got a haircut, i'm guessing your hair is about 3 meters long by now

[bangkokstick]

When I see how much customers pay, I guess it makes a lot of money...

[camo007]

I had a Salon for over a year. Was fun and we had 2 stylists on a salary of around THB 30k each. On top of this they got 50% of all the takings so encouraged to do colours and extra services such as Hair treatments etc. Rent of 50k per month and power of 20k. Would you believe we ran a profit of over 100k per month.. Yeah the ladies loved the colours and treatments and it went very good. Until Celebrity Salons working for TV stations cam and made an offer to my team too good to refuse. I had my fun and told them to move on and I had made my money back already. Was fun and nothing lost.

[how241]

I most be picking the wrong places as all the ones that I have tried either serve coffee or cut hail. Once and awhile a shop will offer me coffee while my hair is cut. .....

+1....never offered any sex in these places. Almost everywhere else though. ha ha

[sfbandung]

I have two friends who own and run 3 salons on Soi Rang Nam. I was friends with them when they only had one around 2 years ago.

They both worked for Toni and Guy in Siam or Silom, forget which, for years and years, then as husband and wife set up by themselves.

From visiting their place for a chat almost daily while I lived there I would estimate a profit of about 15-20k a day. Working long long hours. They bought a 9m condo on Soi Ari, she has a mini cooper and him a 3 series, so they can't be doing too bad out of it.

Not sure what your friends are charging here,but Tony & Guy in BKK, in MBK about 6 years ago i paid 2700 baht for a hair cut, no wonder they can buy condo's and BMW's

Two weeks ago missus and I had our hair cut (shampoo, cut, blow dry) in MBK. Same level as the BTS walkway. 200 for me 300 for her ... 2,700? What did you have done?

Did you have it done at tony& guy in mbk? Or just a salon in mbk?

I was talking about tony& guy senior stylist is 2700 baht just for men's hair cut

Obviously not. It was right down the end. Good setup and twice what I normally pay at the barber in Silom. 2.700 is nearly AUD 100. For a hair cut?

[SjaakNL2013]

To much assumptions and to little knowledge.

Get your facts straight and then ask again

[rakshell]

SALONS

Still curious about this salon stuff. So...

1) Do they they have employees at fixed minimum wage pay?

2) Do the hair stylists pay a flat fee to salon owner (no commission)

3) Do they earn a basic salary and commissions (how much commission)

It seems that there are different systems all going on at the same time. I never knew that it was complex like this. On the outside, things look really simple, but when you did deeper in Thai business culture, you get a whole different picture.

I should have been a social anthropologist

BARGIRLS

I'm not aware of salons being owned by bargirls and sex workers. Never seen that either.

However it definitely could be a good way to change careers. If they are smart, they could save their horizontally earned cash and move into this industry.

It might not make as much money, but you cant be a 20 year old bargirl forever. Sooner or later they will need to consider other options (besides hooking up with some old farang).

TOP CHAROEN

As far as I know Top Charoen is corporate owned (not franchised). Maybe licensed out to other operators

Its true they always have the 50% OFF. I guess that's just their pricing strategy. Pierre Cardin licensed stores are much the same, except at about 80% "markdown". It certainly doesn't mean that they actually are selling below their profit margin. It's just a (very) prolonged promotion.

[Bpuumike]

My haircut costs me 10 Baht.. village barber!

That's good, my village farmer/barber charges 20.

My BKK lady barber of some years has made her intentions very clear, to the point where I take the wife for protection.

[brit1984]

^^ pay level / pay structure varies by employee and by salon - this is also the case in other countries - all hair salon operators (except one man/woman shops) have to find a balance between making profit and remunerating staff in a way that stops them leaving and taking their regular customers with them

such agreements are negotiated on a bilateral basis taking into consideration the relative bargaining power of either side and their preference balance between variable commission and fixed salary (and the agreement will change over time as a function of the relative power dynamics)

Edited November 3, 2013 by brit1984

[Jubes]

You're right OP it is abit complex, usually the employee is on a 70/30, 60/40 arrangement or something similar based on their skillset.

That's what I've come to know with my Thai GF an how she does deals with her employees, she also supplies everything like real hair for extensions, make up, hair products etc. Which can be pretty costly but if you want quality......and of course employees keep 100% of their tips as they would.

Dealing with bargirls, I wouldn't hire them unless they went to school and learnt the beauty profession as my GF has.

But experience and patience plays a lot being in that prof. as with anything which bargirls just dont have an can't get the hang of. Trust me we have tried with some extended family of my GF's.

[Suradit69]

Not forgetting hair dressing salons are a traditional front for prostitution in Thailand.

(along with coffee shops)

By the way

Staff are usually on minimum wage, 9k a month, or less if freelancers.

The boss (one of the staff) may live over and shopfronts are often only 10k a month

So a recalculation

Rent 10k (inc living accommodation, my pals Hair dressing shopfront with 2 bed flat above is 7k))

Salaries 18k (two part time and the boss)

Electricity 3k (my pals salon)

Expenses 31K

Income

........ depends how pretty they are ......

Another pal, also hair dressing

Shopfront 1.7k(3 rooms, shop, bed, kitchen)

Salary 4/6k a month (just her bad/good month)

Electricity 1k

"Not forgetting hair dressing salons are a traditional front for prostitution in Thailand.

(along with coffee shops)"

The term "hair dressing salons" seems to mean different things to different people in this thread.

If you're talking about what might be mainly a barber shop for men, those I've seen seem to have a few women staff but mostly men. Who's prostituting whom?

Those catering primarily to women seem, just by casual observation, to be "manned" by women or men who have no interest in women beyond their hair.

Possibly higher end barber shops that employ women for more than their skills with scissors provide hair cuts with happy endings, but "a traditional front for prostitution," seems to be a traditional farang exercise in illogical generalities that suit their limited experience with those about whom they generalize. One could look at your assumptions about "coffee shops" along the same lines ... which begs the question, where exactly do you get your coffee and coifs? ... assuming we're talking about areas of the country with significant farang populations.

Edited November 3, 2013 by Suradit69

[brit1984]

given that most (actually all i've ever seen) hair salons are open plan with mirrors everywhere, i find this idea that they provide sexual services a little difficult to believe... unless there is something going on underneath that black cape they put on the customers (maybe involving a dwarf-hooker)...

[rakshell]

I had a Salon for over a year. Was fun and we had 2 stylists on a salary of around THB 30k each. On top of this they got 50% of all the takings so encouraged to do colours and extra services such as Hair treatments etc. Rent of 50k per month and power of 20k. Would you believe we ran a profit of over 100k per month.. Yeah the ladies loved the colours and treatments and it went very good. Until Celebrity Salons working for TV stations cam and made an offer to my team too good to refuse. I had my fun and told them to move on and I had made my money back already. Was fun and nothing lost.

Tht's pretty good..

As I understand this, your hairstylists were actually earning B30,000 + 50% commission

If your profit was B100,000, that would be B50,000 in commissions/month!

That's about B80,000 per stylist / month!

That's more than a doctor would earn!

[brit1984]

I had a Salon for over a year. Was fun and we had 2 stylists on a salary of around THB 30k each. On top of this they got 50% of all the takings so encouraged to do colours and extra services such as Hair treatments etc. Rent of 50k per month and power of 20k. Would you believe we ran a profit of over 100k per month.. Yeah the ladies loved the colours and treatments and it went very good. Until Celebrity Salons working for TV stations cam and made an offer to my team too good to refuse. I had my fun and told them to move on and I had made my money back already. Was fun and nothing lost.

Tht's pretty good..

As I understand this, your hairstylists were actually earning B30,000 + 50% commission

If your profit was B100,000, that would be B50,000 in commissions/month!

That's about B80,000 per stylist / month!

That's more than a doctor would earn!

i think he meant commission on sales - if he was giving both the 2 staff 50% of the profit each there wouldn't be much left for him!

can back calculate...

overheads: rent 50k + power 20k + salaries 60k + [other ~20k] = total overheads of ~150k

profit: 100k

=> gross profit = 150k + 100k = ~250k

=> sales = 250k / 50% = ~500k

=> staff pay = 30k + (500k*50%/2) = ~155k/staff

...which is more than some doctors (and less than some doctors)

Edited November 3, 2013 by brit1984

[mizztraveller]

I've been looking to get my hair coloured for less than 1500 baht in Chiang Mai and failed! Costs me less in the UK and the overheads there are way higher. If the person who can get it done for 350 baht 'up country' can PM me with a salon, I'd be delighted!

[rakshell]

To much assumptions and to little knowledge.

Get your facts straight and then ask again

Do YOU have any facts to share?

I'm curious to know what facts you have.

Are you speaking from first hand experience in this industry or just making an unqualified comment?

I would be interested to know what first hand experience you have in the hair salon industry, and what your numbers would be.

Edited November 3, 2013 by rakshell

[Marcel1]

many of my friends are working in credible hairsalons in Bkk. (650 up) their customer base are mainly thai soap stars, hi so and higher mid class people, expats as well as a minimun of walk by tourists. all of them are good people working 6days a month about 9 hours a day. they get training 3 times a year about the latest trends which they pay themselves (3,000) their monthly income is on commission but most of them have a vast client base which ensures them of a income ranging from 28000-45000 b. excl. all the tips who are for themself varies from 5000-15000 a month. Most of them pay off their car from tip money and live of the rest, or send to family etc. etc.

[A1Str8]

They pray on the side.

[nontabury]

given that most (actually all i've ever seen) hair salons are open plan with mirrors everywhere, i find this idea that they provide sexual services a little difficult to believe... unless there is something going on underneath that black cape they put on the customers (maybe involving a dwarf-hooker)...

That's not how it's worked, I don't know of any that actually do it on the premises,thou there may be some that do. What they do is make an appointment with a male client for later, sometimes they just

Leave the shop and go to a local hotel, quite a few of them freelance after work, especially if they are short of a few Bht, some of them are so discreet, that even their co-workers don't know.

[brit1984]

given that most (actually all i've ever seen) hair salons are open plan with mirrors everywhere, i find this idea that they provide sexual services a little difficult to believe... unless there is something going on underneath that black cape they put on the customers (maybe involving a dwarf-hooker)...

That's not how it's worked, I don't know of any that actually do it on the premises,thou there may be some that do. What they do is make an appointment with a male client for later, sometimes they just

Leave the shop and go to a local hotel, quite a few of them freelance after work, especially if they are short of a few Bht, some of them are so discreet, that even their co-workers don't know.

i don't doubt that, but just not sure why other posters think that means hair salons are involved in prostitution

any woman (or man) could secretly moonlight as a sex worker regardless of what they do for a day job

or am i missing something?... maybe the mirrors in these salons are set at a special angle to hide what's really going on

[nontabury]

given that most (actually all i've ever seen) hair salons are open plan with mirrors everywhere, i find this idea that they provide sexual services a little difficult to believe... unless there is something going on underneath that black cape they put on the customers (maybe involving a dwarf-hooker)...

That's not how it's worked, I don't know of any that actually do it on the premises,thou there may be some that do. What they do is make an appointment with a male client for later, sometimes they just

Leave the shop and go to a local hotel, quite a few of them freelance after work, especially if they are short of a few Bht, some of them are so discreet, that even their co-workers don't know.

i don't doubt that, but just not sure why other posters think that means hair salons are involved in prostitution

any woman (or man) could secretly moonlight as a sex worker regardless of what they do for a day job

or am i missing something?... maybe the mirrors in these salons are set at a special angle to hide what's really going on

That's true, girls in other occupations may also freelance, but from my personnel experience the percentage of hairdressers is fairly high.