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How in God's name do €4.99 barbers make money?!?

  • 19-05-2009 02:42AM
    #1
    Registered Users, Registered Users 2, Paid Member Posts: 1,461 ✭✭✭


    Hi, noticed a barber in town advertising €4.99 haircuts, went in and sure enough, the Polish lad there did it in 15 minutes for €4.99. My question is if the average cost to rent a location in this area is €500 a week (I asked around), how does this fella make any money?!? Around 17 haircuts a day to just break even, by my 6 day logic. Any thoughts about if he's the smartest business man ever or will he be closed in a week?


Comments

  • Posts: 7,542 ✭✭✭ [Deleted User]


    This post has been deleted.


  • Closed Accounts Posts: 1,388 ✭✭✭delllat


    Hi, noticed a barber in town advertising €4.99 haircuts, went in and sure enough, the Polish lad there did it in 15 minutes for €4.99. My question is if the average cost to rent a location in this area is €500 a week (I asked around), how does this fella make any money?!? Around 17 haircuts a day to just break even, by my 6 day logic. Any thoughts about if he's the smartest business man ever or will he be closed in a week?

    if hes recently negeotiated his lease it could be lower than 500 a week

    some of the faster sheep shearers can have you bald in 5-10 minutes

    thats 30- 60 quid an hour if you can get enough heads hence the 4.99 to generate the heads


  • Closed Accounts Posts: 1,710 ✭✭✭RoadKillTs


    Sound like he is a cut above the rest :)

    Well fair play to him . I'd say he does more than 17 a day. Whats that other chain in town that do them real cheap aswell?


    Edit: http://www.justcuts.ie/ €7


  • Closed Accounts Posts: 6,123 ✭✭✭stepbar


    At a fiver a head, you'd be lucky not to get your ears cut off. Even if he did 17 heads every day, 7 days a week @ a fiver, it's a fairly poor return (c 600eur) and lets be honest probably uneconomical in the long term.

    The only other way I could see him making money would be if he was selling other complementary products etc.


  • Registered Users, Registered Users 2 Posts: 7,062 ✭✭✭Fighting Irish


    It only takes 5-10 minutes for me to get a hair cut


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  • Closed Accounts Posts: 5,538 ✭✭✭niceirishfella


    Still, 4.99 or no 4.99, I'm a fan of paying a decent price for a nice cut....like you wear your hair every day FFS. I'd only go into a place charging €12+....call me a snob if you like.
    All that business will get are soverign wearing Creamers.


  • Closed Accounts Posts: 174 ✭✭patftrears


    could be a couple of reasons

    1. It's a short time promotion to get customers who hopefully will return.
    I cut my own hair now but I always went to the same barber for years.

    2. Cashflow, he might need money to pay bills right now, not worried about making a profit (lots of people doing this at the moment)

    3. Low cost is a proven sales strategy, he will have to keep his operating costs low, get a large number of customers and get the haircuts done quickly.

    You get a €5 haircut, your more focused on price than quality so a quick 10 minute job will do.
    You get a €20 haircut, you want it done exactly how you like it, washed before hand, probably take twice as long.


  • Registered Users, Registered Users 2 Posts: 1,857 ✭✭✭Atlas_IRL


    20 euro hair cut takes 1 hr in the Grafton barbers.
    How many 5 euro hair cuts can he do in that time considering he's going to have a much bigger customer base with the price.


  • Closed Accounts Posts: 89 ✭✭waves


    I'd only go into a place charging €12+....call me a snob if you like.
    All that business will get are soverign wearing Creamers.

    I pay about €45 for mine so no, I won't call you a snob....

    People who aren't overly fussy about their hair will go to him which probably means that there'll be a lot of people getting their heads shaved which takes very little time to do compared to a proper cut.

    I'm also assuming that you won't get your hair washed for that price....

    Maybe he charges more during busy hours.


  • Registered Users, Registered Users 2, Paid Member Posts: 1,461 ✭✭✭actuallylike


    Scien wrote: »
    You should post that in Bargain Alerts by the way. €4.99 haircuts. Sweet.

    Even better deal on Tuesday, Knights on Grafton Street were giving away free haircuts!!! Looks like the bubble's burst on barbers.


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  • Registered Users, Registered Users 2 Posts: 283 ✭✭Cringer


    And sure a euro or two in tips is always welcomed I'm sure :)

    His model is spreading anyway.


  • Closed Accounts Posts: 201 ✭✭byrne0f56789


    I'm sure he worked it out. I suppose the logic would go like this. 15 mins per cut. That's 4 per hour. If he works 10 hours a day that makes 40 haircuts a day. If he works a 7 day week. That's 280 hair cuts a week. At full capacity he makes €1,397.20 per week. Take away the €500 rent and he has €897.20 to pay himself and other expenses.

    I know he must operate at full capacity.

    Welcome to the recession folks.


  • Registered Users, Registered Users 2 Posts: 230 ✭✭BarryM3


    Not completely clear if there is only one staff member. If there was say 3 guys operating at full capacity then he would be taking in €4200 per week, still only has the €500 rent...so €3700, pay two staff members a total of about €800...he's left with €2900 to pay himself and his other (non rent) expenses!


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