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Steve O'Borsky of Lakeville used to spend about $22 for a salon haircut. Then the recession hit, and he switched to a $12 cut at a cheaper place.
"I save $10 a cut 20 times a year," he said. "I'm just as satisfied at almost half the price."
As nearly all consumers found ways to cut back during the recession, economists are wondering if people's spending habits will return to normal as the economy recovers. The hair care industry has reasons to be concerned.
Many men and women not only "downgraded" their hair care services during the recession, but they also spread the time between cuts by one to three weeks, according to Twin Cities hair care experts. It's hitting many salons hard, from mainstream to luxury. In 2009, Regis Corp. reported its first negative annual same-store sales in its history.
"If people who used to get their hair cut every five weeks now go to six weeks, that's a 12 percent decline in business," said Gordon Nelson, executive vice president for the Edina-based company, which owns discount- to mid-priced salons nationwide, including Supercuts and Cost Cutters.
Middle-of-the-road salons have been hit hardest, said Adam Wexler, owner of Beauty Craft, a beauty supply wholesaler in Minnetonka. Salons that charge women $35 to $40 for a haircut are having a much harder time than budget salons under $20, he said.
But even high-end salons have been hit. Tom Schmidt, who charges $130 for a women's haircut at his Uptown salon, saw the change coming.
"I'm in a luxury business, so I was bound to lose a few clients in a recession," he said. "I've found ways to keep them coming in."
He established a discount for women who get their hair cut every four weeks instead of every six to eight weeks. He used to have color specialists do highlighting but does it himself now in his one-man shop, named after himself. It's more important than ever to find a niche, he said, so he also added a wig-fitting business for women, including those fighting cancer.
What worries salon owners is that cost-cutting may be habit forming. If men or women switched to a cheaper cut or went longer between cuts in 2009, they've had more than 10 cuts since then, on average. As those habits become ingrained, they're harder to break. Once a client goes to a salon four times, he or she usually becomes a long-term client, said Kurt Kueffner, owner of MensDept. salon in Minneapolis.
Schmidt says he understands how people's spending habits change in the recession. His did, too.
"I used to shop at Lunds and Byerly's. Then I discovered Rainbow and Costco," he said. "It's changed forever."
Trim the sides and your bill
Many consumers, mostly women, have remained loyal to their stylists and especially their colorists, Wexler said. Men aren't as likely to remain with one stylist. But both women and men seek out discounts.
Some barbershops have responded by cutting prices. Men's haircuts at many shops used to run between $15 and $20. Now it's $10 to $15, said Terrie Mau, owner and instructor of Moler Barber School in Minneapolis.
Frugal customers can save even more by having their hair cut by students at barber or beauty schools. Most charge less than $12 for a cut. Moler charges only $7.50. On Tuesdays through Thursdays, senior citizens can get a trim for just $5.50.
For a list of beauty schools and prices, go to www.tinyurl.com/25u4as5.
Salons that haven't made permanent price cuts are still offering discounts galore. Even inexpensive salons such as Fantastic Sams and Edina-based Great Clips offer frequent discounts. Fantastic Sams offers coupons every four to five weeks in the blue Valpak mailer or the Vlassis flier. Most Great Clips accept competitors' coupons.
If you're not a clipper, ask about other discounts. Savings can be found at the salon's website, Facebook page or front window.
Some of the savings are more creative. The MensDept. salon sells a $375 package for an unlimited number of haircuts in a year, a good deal for the guy who gets a cut every couple of weeks. Kueffner hopes to land a few of the guys who have skipped the salon entirely and are having a friend, spouse or girlfriend do it. One in four men cuts his own hair or goes to a friend, he said -- "and it's usually not pretty."
John Ewoldt • 612-673-7633 or jewoldt@startribune.com. If you spot a deal, share it at www.startribune.com/blogs/dealspotter.
