020 Salon Republic’ the Pros and Cons of the Salon Suite Business Model with Eric Taylor

In this episode of Grow My Salon Business with host Antony Whitaker, Antony is talking with Eric Taylor. Eric is the founder of the Salon Republic, salon suite business in California. Salon Republic is booming with 21 locations and a total of over 2000 individual suites. On top of that, Eric is also a fantastic podcaster and has a podcast called The Hair Game.  Listen in as we discuss: Why the salon studio model started. Who started it and where.  What is driving the growth?  Things to consider when looking at leasing a suite. Who is a fit for the suite atmosphere? They compare the differences between a commission-based salon and the salon suite model. The pros and cons of both, and what that looks like from both an industry and a client perspective. Eric also talks about the average cost of having a salon suite, what that cost covers, and the new beauty supply store they have in house. Eric believes that what is driving the salon suite business model is the flexibility it offers,  you set the hours, you set the prices and you set the days of the week you want to work. It is the ability to own your own business without all of the overhead of actually owning a stand-alone salon. But as Antony points out, “it’s not for everybody!”  If you are a stylist and are thinking wow I want to do that! Listen as Eric fills us in on why it is an excellent option for the right person. He is so knowledgeable about the industry, has grown his business exponentially and is looking to expand further. Whether or not you like the salon suite model this is a conversation that you need to hear in order to understand the changes impacting on the industry and what is driving those changes.   In This Episode: [01:32] Welcome to the show, Eric! [02:15] Eric discusses what the salon studio model concept is, why, and where it started. [06:50] Antony talks about the scale of suite models and how many can fit in a 20,000sq ft warehouse. [09:27] Each studio is an individual business with four walls and a door, and the stylist is in charge of everything from services to rates. [10:10] What is the most prominent reason stylists like the studio model? [12:37] This is more for stylists with a good client base; there are not enough walk-ins to build a business. [15:40] Antony plays devils advocate and askes Eric why commissioned salon owners should take new stylists out of school, help them build a clientele for them to leave, and open up their own suite? [17:53] Eric says the reality is that each salon model has its pros and cons. [22:27] What is the mindset that has allowed this model to explode in Texas and California? [28:51] They speak about clients wanting to be in a bustling salon and not in one chair, one mirror kind of environment, and who likes it. [31:46] What was the response from traditional salon owners when you first started this suite model? [34:27] What does an average suite cost, and what does the cost cover? [37:04] Eric discusses what the expense of a suite covers at Salon Republic and about the beauty supply store they have available. [42:17] The industry average of people who leave salons, in general, is 30%, but at Salon Republic, the turnover is about 15%. [44:53] How important is social media for marketing what stylists have to offer? [46:46] Eric believes that the studio model doesn’t necessarily rely on social media; word of mouth is the best marketing tool. [48:48] How many studio stylists use it as a stepping stone to open up their own salon? [52:33] Eric says that his studio stylists do bring on assistants and are training the next generations. [53:20] How long are the leases at Salon Republic studios? [54:29] What is a typical suite owner? [57:24] Eric says that in the next five years, there will be more studio offerings nationwide and will continue to grow. [01:00:15] Any plans on international expansion for Salon Republic? [01:02:03] Thank you, Eric, for giving us your time on a Friday night! Find Eric @loveerictaylor Instagram @salonrepublic Instagram | LinkedIn | Facebook Thanks for listening! Thanks so much for joining me this week. If you enjoyed this episode, please share it using the social media buttons at the side or bottom of this post. Also, I’d love it if you’d leave an honest review for The Grow My Salon Business Podcast. Ratings and reviews are extremely helpful and greatly appreciated! They do matter in the rankings of the show, and help other people find my podcast, I also love to hear what’s been helpful! And finally, don’t forget to subscribe to the show on iTunes or Google to get automatic updates  Special thanks to Eric for sharing his words of wisdom with me for this week’s episode. Until next time!