Barber & Beauty Shops - Vertical Selling Guide - Verifonezone.com

V E R I F O N E V E R T I C A L M A R K E T S E L L I N G G U I D E – B A R B E R & B E A U T Y S H O P S
Market Segment: Barber & Beauty Shops
MCC: 7230: Barber & Beauty Shops
NAICS: 812111/812112/812113: Barber Shops, Beauty Salons, Nail Salons
SIC: 7231/7241: Beauty Shops, Barber Shops
Market Overview
This market segment includes barber shops, beauty salons, and nail salons. Beauty salons account for
the vast majority of the annual industry revenue (85-90%) of approximately $35 Billion. There is a very
important segmentation of this market between the chains (multiple-employee) and the independent
operators, especially as it relates to payments.
The segment consists of are approximately seven hundred thousand establishments belonging to about
six hundred thousand firms. The vast majority of the companies are single owner operated (87%). The
corporate environment is dominated by a few companies that are heavily focused on franchising. The
largest of these companies is the Regis Corporation. Regis operates over ninety-five hundred salons is
the US under such names as Supercuts, Sassoon, Mastercuts, and Regis Approximately seventy-five
percent of these locations are corporate-owned.
The Regis companies, like the other chains, have a transaction mix that is weighed heavily toward
cards. Approximately seventy-four percent of their revenue is card-based. Their average transaction
is $29. Other companies in the business are Great Clips (2,800 locations), Fantastic Sam’s (1,300
locations), Hair Cuttery (800 locations), and Sports Clips (680 locations). These companies focus on
franchising. As franchisors they usually have a preferred payments program through a major
acquirer/processor but most allow their franchisees to select their own provider. For the chain salons
the overall average card transaction is $45, with a range of $17 to $200. The average location has 5.2
employees and $16,000 in monthly revenue ($12,000 card-based).
The non-employee operations show totally different characteristics from the chains. They make up the
vast majority of the enterprises (87%) but only of 42% of the industry revenue. The average individual
bills approximately $1,800 per month. Credit/Debit card use in this market segment is fairly low.
Industry data shows that the average ticket, when a card is used, is in the $45 range and these
transactions make up less than fifteen percent of the total volume.
Page 2 of 11