THE LAST WORD ON…

HAIR BUSINESS OWNERS ARE OFTEN CREATIVES FIRST, AND LEARN KEY BUSINESS SKILLS ON THE FLY. WHAT’S THE BEST APPROACH TO NEGOTIATING NEW DEALS?

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As a stylist, you will have spent years honing your creative and banter skills… but hard business negotiation? That doesn’t always come naturally. However, with the costs of doing business at an all-time high, it’s a skill you need to nurture to get the best deals.

“During Covid especially, negotiating meant the difference between staying open and closing,” says Gina Conway, founder of Gina Conway Aveda Salons & Spas. She had some big contracts in place and three properties with rents to pay during lockdown. “Sadly, the landlords were short-sighted and didn’t help, but I managed to negotiate with my accountant, marketing and PR company and utilities to help bring down some of the costs.”

She admits that some items are more flexible than others. “If it’s a service you’re looking to reduce costs on, can you also reduce the level of service you require? For example the number of hours or scope of work that you have currently,” she adds.

Jamie Brooks, co-founder of London’s Brooks & Brooks, spent an inordinately long time negotiating the departure from the salon’s original premises in Holborn, and on moving into its new Covent Garden location. That involved agreeing on the settlement and the date at the old salon, while negotiating a new lease with the new landlord at the same time. On top of this, he was sorting out team contracts and holidays, too. “I spent about six months last year doing this and nothing else,” he grimaces.

Don’t go into a negotiation without being prepared. “Do your research,” states Gina. “Making unrealistic offers is embarrassing and likely to be turned down. You must be realistic about what it will cost you, be prepared and know what your bottom line is and the absolute top you can afford, and negotiate as low as you can.”

Gina adds that you should always ask for the number better than what your bottom line is because “a good negotiation normally takes about two back and forth hits before you land”. And she’s adamant that the final deal needs to be a win-win: “Nobody wants to feel cheated or guilted out of their fair share. Equally, you will want to feel like you won too, so if it’s below your bottom line, walk.”

Jamie fervently agrees. “Everyone has to leave the table happy. If you leave thinking ‘wow, I’ve got away with this’, and someone else didn’t feel like that, it will come back and bite you,” he explains. “There’s a difference between telling someone something, and you negotiating something. You must use your negotiating skills and be open to compromise.”

And if the tempers start to fray? “Always diffuse a situation,” says Jamie. “Stay on the good side of your landlord, don’t get them offside before you’ve even started your relationship. We allowed our landlords to do things we didn’t initially want so that we could keep the peace. One of the golden rules is to try and see it from their side; step back and think if you were the landlord, what would you say about you? Are you an attractive tenant, are you benefiting them? Don’t overestimate your value and worth in the bigger picture in a bid to save a few pounds.”

But you need to be prepared to walk away if you want to negotiate hard. “Not all negotiations can be made or are worth the heartache. It depends on the circumstances, as sometimes the company cannot budge as they would have a duty of care to be fair across the offering to their clients, but in terms of a lease where each deal is unique, that is where you are likely to find flexibility,” says Gina.