VTMBH Article: Body
Korean nail salons are suffering from severe competition with each other. Its the most troublesome problem in the nail salon business, as the number of salons increase in the New York and New Jersey area.
Nail salons in Closter, New Jersey, began experimenting with the strategy of surviving together several years ago, and its now becoming a model for nail businesses in New York as well.
The owners of the nail salons in Closter have regular monthly meetings to discuss the current issues facing nail businesses and to try to resolve the problem in a cooperative manner.
Especially, they fix a fair price during the meeting in order to prevent underselling, one of the most chronic problems in the nail business. The main issue for them is to prevent the overhead, including labor costs, from rising so much that shops close.
Owing to the one of characteristics of nail service, there is a tendency of a nail service workers regular customers to follow that her worker when she moves shops. To prevent this phenomenon, the Closter nail salon owners agreed to restrict employees from transferring; in effect, they refuse to hire nail workers who attempt to move from another area shop. Besides, the owners also decide some issues such as which days to close and details about seasonal promotions through open discussion.
It has been seven years since they held their first meeting. It was 1992 when the nail salons in Closter had severe competition; prices were so low that salon owners felt their businesses were in a state of crisis. They realized they would lose the entire Korean nail market if they persisted in competing. This realization turned into the owners meetings that continue.
The owners explain that because of the meetings, there are no longer conflicts among nail salons in this area, in contrast to other areas, where severe competition creates a lot of conflict and strife.
Hyun-suk Kim, the owner of Nail Boutique in Closter says that as we discuss and share our business problems once a month, we form a relationship not as competitors, but as partners, and she contends that as its already hard to manage in this recession, a self-destroying competition in which prices are lowered at all costs even to ones own detriment should disappear.
Nail salons in Closter, New Jersey, began experimenting with the strategy of surviving together several years ago, and its now becoming a model for nail businesses in New York as well.
The owners of the nail salons in Closter have regular monthly meetings to discuss the current issues facing nail businesses and to try to resolve the problem in a cooperative manner.
Especially, they fix a fair price during the meeting in order to prevent underselling, one of the most chronic problems in the nail business. The main issue for them is to prevent the overhead, including labor costs, from rising so much that shops close.
Owing to the one of characteristics of nail service, there is a tendency of a nail service workers regular customers to follow that her worker when she moves shops. To prevent this phenomenon, the Closter nail salon owners agreed to restrict employees from transferring; in effect, they refuse to hire nail workers who attempt to move from another area shop. Besides, the owners also decide some issues such as which days to close and details about seasonal promotions through open discussion.
It has been seven years since they held their first meeting. It was 1992 when the nail salons in Closter had severe competition; prices were so low that salon owners felt their businesses were in a state of crisis. They realized they would lose the entire Korean nail market if they persisted in competing. This realization turned into the owners meetings that continue.
The owners explain that because of the meetings, there are no longer conflicts among nail salons in this area, in contrast to other areas, where severe competition creates a lot of conflict and strife.
Hyun-suk Kim, the owner of Nail Boutique in Closter says that as we discuss and share our business problems once a month, we form a relationship not as competitors, but as partners, and she contends that as its already hard to manage in this recession, a self-destroying competition in which prices are lowered at all costs even to ones own detriment should disappear.