Barber Shops, Beauty Supply and Caribbean Restaurants

[HL]

Seems to me that there are 10's of the above business all compacted in a <1 mile sq. area in most communities.

Cleaners and Nail Salons follow the same trend...just that these (two) cater to a larger market compared to the businesses in the title of this tread.

It's not unusual to see two barber shops in the same plaza...or two Caribbean restaurants...one on each block.

Most of these business close within 6 months or less.

I am trying to figure out why this business trend continues--when the results clearly show that this market is supersaturated.

[Karl]

Seems to the average man that that would be a no!-no! ...but I have heard it claimed that the stats show that it is actually good for the businesses.

Similar to finding Attorneys shingles, doctors offices (health service providers), banks and financial institutions, etc. all in 'clusters'.

[MdmeX]

How can it be good for the business, when most of them have no customers and close within x months.

With so much overhead costs, rent, utilities, insurance etc. is only the strong gonna survive. I see some in my neighborhood and every few months is a new owner, with new name.

[Gamma]

how many of them operate as "front"? i know is so fl they used to be used sell other illegal stuff.

[Bruce]

I can name a specific Jamaican restaurant in the Fort Lauderdale suburb of Inverrary, I doubt they're a front for something, but every time I've been there, there was a wicked domino game being played in the back room.

[HL]

Seems also, that there is a constant Barber war going on.....

The young lady who cuts my hair just stopped by, gave me her new business card. She has joined a new group in a different location.

It reminds me of churches breaking away--to form smaller inefficient waste of gods time sub-churches.

[Historian]

Actually, Things Happen There!!

How can it be good for the business, when most of them have no customers and close within x months.

With so much overhead costs, rent, utilities, insurance etc. is only the strong gonna survive. I see some in my neighborhood and every few months is a new owner, with new name.

Here’s a typical barber shop. If you watch the YouTube video (link below), you will see that a tremendous amount of worthwhile, creative, self-empowering activities and discussions take place. These are centers for immense learning and valuable self-improvement!
http://www.youtube.com/watch?v=KMBDQGgDgfk

[Hortical]

In the old days when record shops used to carry the swing for 12 inch singles, quite a few who rarely had any new material operated as "fronts" for the sale of narcotics & other drug paraphernalia.

[Hortical]

Karl, attorney & doctor offices appeal to a much wider geographic area, unlike barber shops & restaurants where people will rarely travel more than 20 minutes to patronize those establishments.

[HL]

Historian, from that perspective--the (traditional) Barber Shop is a 'university' on to itself.

I enjoy going to my long standing Barber Shop. The discussions, quarrel, squabble, sometimes 'intellectual' conversations have no boundaries...

The objective of my post was to note the over-population of this business. That the turnover rate has gotten to a point that prospective owners should see the signs and save themselves the wasted exercise in time and cost . The same is true for Jamaican restaurants.

Last: Just drove by a brand new strip plaza with about 8-10 units. The first two signs that went up were for 2 barber shops:

[Historian]

HL, It Was a Joke Post

Historian, from that perspective--the (traditional) Barber Shop is a 'university' on to itself.

I enjoy going to my long standing Barber Shop. The discussions, quarrel, squabble, sometimes 'intellectual' conversations have no boundaries...

The objective of my post was to note the over-population of this business. That the turnover rate has gotten to a point that prospective owners should see the signs and save themselves the wasted exercise in time and cost . The same is true for Jamaican restaurants.

Last: Just drove by a brand new strip plaza with about 8-10 units. The first two signs that went up were for 2 barber shops:

HL, boss, I was just being sarcastic . Every word I said in my post above was said jokingly. That’s why I posted the link to that nonsensical YouTube video, which was set in rural Jamaica and featured two guys chatting garbage (lol).

I realized fully the objective of your post, and I in fact agreed with everything you said.

[Jawge]

Spot on Karl not saturated but very competitive. The problem is most Jakans don't know how to compete in competitive markets (with thin profit margins).

I am friends with owners of thes local businesses and I can tell you of success, not so successful and about to go out. I talk and literally
researched some. The ability to adjut and satify the customer is the key.

Barber shops must adjust and diversify (look at staples these days are they selling stationary alone?) The success of the local these local business I studied was a small reestaurant of middle class jakan orgin. The children were sent to college. To make long story short one came back from wall St. ran the business (parents retired in the south) improved revenues (by branching into other areas outside of food and excellent customer service). The parent told my mom that the sibling is doing better business that they were doing (granted you have other Jakan restaurants around not doing well).

The sibling now installed cameras all over the store (so the parent can wtach via web when the sibling isn't there), set up a sytem and is now attending grad school whilst the business still flourishes.

I can contratst another restuarant that drew my interest. Why? well I saw them having a staff meeting (akin to corporations), I also noticed that the staff all had uniforms. I befriended the manager and asked about the owner. turns out the owner works for a major, major US corp. and travels the world for this corp ( I said ah thi is making sense now), one day I came tothe restaurant only to see a line and a stafff busy putting out rice and peas in a pan. I could see that the customers began to get edgy, I said "can't you serve the customers?putting rice in a pan can wait" if you were working where I worked you would have been gone. She sat there doing her own thing. I asked for the manager but the manager was out. Long story short; whilst this owner is away for a major corp. his staff is on the ranch killing his investment/business.

It gets better; I came there again and the owner was there this time and I commented on the poor customer service at that moment, he sided with the staff and made ecuse for them. Any freshman business major could tell you what's wrong here.

Barbershop owner asked me to find partners to help is slowing business but I declined because I saw where he is set in his ways and not ready to make radical changes.

One thing I can say is that I learned a lot about running a business (especially in a competitive environment) in the US (doing sales). I now see why sales is always the leader (rainmaker) in most US corps and why the CEOs are pulled from sales, nine times out of ten.

[Islandman]

Clusters do work but there is typically some diversity within the cluster. For example a cluster of restaurants are not serving the same food and have the same style of operation. Similarly in a cluster of health providers or lawyers you usually find specialists in different areas.

A cluster of Caribbean restaurants has very little diversity. They typically have the same menu and have average customer service at best.

[Don1]

Easy..... the restaurant is a front for dominoes

[Gamma]

"sales" also caused the real estate market to bottom out .... too many people selling puffery and being very good at it to boot!!