Company: Paul Hyland Salon & Day Spa
Contact: Shelly Hyland, co-owner
Location: Crystal Lake, IL
Industry: Professional services, B2C
Annual revenue: Confidential
Number of employees: 30
For Paul Hyland Salon & Day Spa in Crystal Lake, IL, there was no question about it. Increased competition in a luxury industry that was bound to get hurt in this economy meant the small business needed to intensify its marketing efforts and show consumers it is here to stay.
By using low-cost email marketing and coupons and launching new-client referral and reward programs, the 30-person salon is doing better than it was pre-recession—with growth in both service and retail product revenues, double the volume of new clients, and an increase in existing client loyalty—all while the beauty spa industry as a whole continues to falter.
No doubt many, if not most, sectors are feeling the pinch as consumers continue to watch their spending in the current economy, and luxury services such as salon and spa services are certainly within those ranks.
"The spa industry is reporting that spa services such as facials and massage are 20-30% down from last year as people cut back," asserted Shelly Hyland, co-owner of Paul Hyland Salon & Day Spa.
Her salon, located in Crystal Lake, IL., has also had to face an abundance of competition of late, as big-box beauty supply outlets such as Alta Beauty strive to expand their offerings in order to stay afloat. "They put a couple salon chairs in the store and classify themselves as a salon," she said. "There are five within a ten-mile radius of our salon now, and it's tough competing against them," she admitted.
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