WHEN SERVICE BUSINESSES CUT BACK DO THEY REALLY THINK NO ONE NOTICES?  When was the last time you or your significant other went to a salon?  Nail salons have gained huge popularity for a variety of reasons, including immigration eligibility by meeting the criteria of the E2 VISA requirements interestingly enough.

PUTTING YOUR FINGER ON THE PROBLEM       

However, once establishing a regular clientele, most salon owners resort to cost costing devices and the quality of service seems to diminish.  

The owners wrongly  feel no one will notice. But regular customers really do. 

 Little things like the foam toe separators they suddenly replace with rolled up paper.

The lack of electric filing with the drummels to soaking for extended periods of time or using plastic tip nails to pry off existing acrylic applications. 

There was no complimentary beverage or signature back rub when it was over....

 Changes from just the last time about a month ago before the operating costs of that business cut deeply into the profit margin.  Yet they charge the same, while offering less than they used to.

There is rent, electric costs, insurance, employee payroll, and the cost of products sold which all play important factors in determining service pricing.  Recently, OUC here in Florida as well as several other power companies had a significant increase in the cost of providing electricity.  Homeowners complained as the average bill increased by $200 from one month to the next for similar usage. Now averaging over $400 a month for a 2000 sq ft home. Up almost 80% of the cost to operate the same home 1 year ago.

Businesses however pay a higher rate than residential users do.  One can only imagine how much their bills were impacted by the latest increase.  In difficult economic times, cutting cost is the first pre-emptive steps taken to survive.

As costs rise both for businesses and private residences, so does the amount of disposable income proportionately.  Absent are the crowds at Malls, Hair Salons, Nail Salons, Pet Grooming shops and grocery stores.  Video rental stores are empty, so are most restaurants.  

 Real Estate is a service based business. It seems that when the last postage increase went through, the majority of junk mail stopped almost overnight.  Certainly a response to the increased cost of marketing in that manner.  Did customers notice?  Probably when their trash cans got a whole lot lighter.

Service does not always translate to material items, it is simple stuff, like returning phone calls, responding to concerns, resolving issues, and investment of time- fortunately there is not a tax imposed on that yet.   In tough times the level of service should increase to keep the customers you have.  While income may be disposable, certainly customers should not be.

Are you cutting back?  Do you think no one has noticed?