Samuel Henig
Ryan Holland
Toan Huynh
The Big Hoss Barbershop and Lounge Industry and Market Analysis
INDUSTRY
The Industry that The Big Hoss Barbershop and Lounge would fall under is the NAICS Code
812111, identifying Barbershops. However, for the analysis, we also looked at statistics for 722410
Drinking Places (Alcoholic Beverages). Based on on the Economic Census Industry Snapshot, total sales
in the United States for this industry was $568,000,000 Nationally in 2007 and the number of competitors
in Maryland ranged from 57-116 (city-data.com). But if we were specifically looking for locations that
were also under both categories, the number of competitors would fall dramatically. The only true
competitor for a business of this nature would be The Quinntessential Gentleman, located in Baltimore,
Maryland. The QG, claims to be “reinventing the barbershop” with their membership offerings, spa,
tailoring, shop, shoe shines, and lounge areas. They also offer the option to stock your private bottle or
you can simply have a complimentary beverage.
Showing promise for the industry, other areas of the country have shown growth of
businesses of this category. Through internet research and traveling, we have found a few
different businesses that have not only been successful in one location, but have been able to
expand to numerous locations. The Gents Place, located in Frisco and Dallas, Texas, and
Leawood, Kansas, claim to be “putting the Bar back in Barbershop” with events that feature
whisky cigar tastings, club memberships, shoe shines, and numerous other services.
If this area is anything like the rest of the country, businesses like The Big Hoss Barbershop and
Lounge have great potential for success and growth. And judging by 8% growth from 2008 to
2009, during the economic recession, for barber shops in Prince Georges County, Maryland.
And according to Sabrina Tavernise, of the New York Times, “It seems that getting a haircut is
one expense that consumers are reluctant to give up,” in reference to the economic recession.
This is clearly a good sign for the industry because it means that regardless of the economic
condition, barbershops have continued to be profitable and have even increased growth through
the recession.
MARKET
There are two main market segments that Big Hoss Barbershop and Lounge appeals to.
The first is men looking for an upscale barbershop that provides quality barber services in a
convenient and comfortable location. The second is men looking for a place to hang out with
friends and enjoy the amenities provided
The main market segment for Big Hoss Barbershop and Lounge would be men in the
area, anywhere from 18-50 years old, looking for a slightly upscale location to get a haircut and
be able to relax with friends while they get theirs. We appeal to this segment by providing
multiple barber chairs run by professional and skilled barbers all in a relative location near each
other so that conversation is possible and friendly interactions are encouraged.
A second market segment for Big Hoss Barbershop and Lounge would be men in the
same age range looking for a location to come hang out, watch sports, movies, or shows with
their friends, while enjoying a drink or some snacks, and the option to have some fun on our pool
table or play video games. We appeal to this segment by providing multiple big screen
televisions along with a movie projector for special events. There are also numerous La-Z-Boys,
massage chairs, and a comfortable sofa to choose from while enjoying what is being shown.
As stated earlier, the male population in Towson, Maryland is roughly 46% of the total
population, which comes out to about 25,358 men, with a median age of 34.6 years old. This is
the perfect location for Big Hoss’s target market because of the age and average household
income as also stated previously.
When it comes to growth of the barber industry, conditions seem to be steadily increasing
when it comes to sales, and constant when it comes to industry growth. According to
www.bplans.com, or businessplans.com, sales for the barber industry have been on a steady
incline since 2011. However, the growth for the industry has flat-lined since 2011. This would be
a bad thing but since the sales for the industry overall are continuing to grow, the industry
growth could be considered a good thing because it means that the number of competitors has
ceased to grow at such a rapid pace, making entry to the market at this point ideal.
Our target market is perfect when it comes to growth. The area around Towson is
constantly growing and more and more people are moving to the area. Towson University over
the past 10 years has had enormous growth as a school. Each and every year more and more
people come to Towson to become students. Based off a study by Dr. Maravene Loeschke,
Towson is estimated to increase its total amount of students by 3,000. This taking Towson’s
total amount of enrolled students from approximately 22,000 to 25,000. If we estimate that
about half of these new students are male; that is another 1,500 people that are potential
customers of ours. The growth potential of our target market is on a constant incline, and will
most likely always remain this way.
A competitive analysis is essential for a marketing plan because it helps establish who
Big Hoss will be attempting, as a new business, to take customers from and how to do it. There
are several competitors in the general area that Big Hoss would be competing with. They range
from chain barbershops to upscale privately owned barbershops. Each has its own strengths and
weaknesses that Big Hoss would have to work around and capitalize on respectively. To
determine how to approach the market in which these businesses have already established
themselves, individual SWOT Analysis’ were conducted for each competitor.
Competitor number one, Sportsclips is a chain that would be most competitive. This
franchise, according to their website, sportsclipsfranchise.com, “offers men and boys more than
just a haircut – we offer them a unique, sports-themed experience they can’t get anywhere else.
Clients can drop in any time without an appointment and be greeted by MVP-treatment from a
friendly, professional stylist while sports play on television (SportsClips).” This male (The Art
Of Manliness) (The Quinessential Gentleman) (Hairway to Steven) salon, if you will, has prices
similar to Big Hoss. They offer three services: MVP, Triple Play, and Varsity. MVP offers a
Consultation, Haircut, Steamed Towel, Shampoo, and neck and shoulder massage; Triple Play
offers a Consultation, Haircut, Steamed Towel, and Shampoo; and Varsity offers Consultation
and a Haircut. The prices are $24, $21, and $18 respectively. SportsClips, being a franchise, has
two locations in the relative area. However, the general theme of SportsClips is sports themed
and not everyone is a sports fan. This makes it unattractive to those who are not looking to be
bombarded by sports from the minute they walk in. Also, according to their website, no
experience is required to own and run a SportsClips. This means that not every location will be
run the same. This variance between locations might prove to be non-professional. Finally, one
major weakness of SportsClips is that they do not employ barbers, simply hairstylists and
according to ArtofManliness.com, “The problem (with chains like Supercuts/SportsClips) is that
many of the people who work at salons are not trained barbers. They’re cosmetologists. The
difference between the two can spell the difference between a dopey-looking haircut and a great
one.” This might be unattractive to customers who were looking for a real barbershop
experience.
Another competitor would be The Quintessential Gentleman, an upscale barbershop
located in Baltimore, roughly twenty minutes down 695 from Big Hoss. This barbershop offers a
wide variety of services including: haircut, scissor cut, grey and color blending, buzz cut, straight
razor shave of face or head, line-up/shape-up, beard and moustache trim, and neck shave, along
with a few different packages that include any of the previous. They also have a full service spa,
boutique, lounge, pool table, and shoeshine station, and massage therapy. However, The
Quintessential Gentleman’s target market is clearly upper business class judging by their
location, prices, and atmosphere. This leaves out anyone who does not wish to pay up to $45 for
a haircut. Another threat they may have is that their location has extremely scarce parking
opportunities and is further than most would want to travel for a haircut. One of the biggest
weaknesses that The Quintessential Gentleman has is that it is almost exclusively by
appointment only. This makes it difficult for people to drop in and get a quick haircut on their
own schedule. The need for planning ahead would take away that availability.
The final competitor for Big Hoss would be Hairway to Steven. This is a local
barbershop, located within walking distance from Towson University. One of the strengths this
barbershop has is its location. Being located within walking distance from Towson University
makes it available for any of the students on campus or in the near area. It is also owned and run
by a master barber, which gives it strong credibility for quality of haircuts. It has an old school
local barbershop feel to it, which caters to those looking to return to the classic style barbershop
for a haircut. It also offers the classic barbershop services including: single guard-buzz cut, style,
shape-up, shave, and shave and a haircut. Going along with these services, Hairway to Steven
offers them at a relatively lower price: $15, $17, $9, $20, and $33 respectively. However, it is
poorly marketed. The website if extremely simple, doesn’t use social media or any other form of
advertising. This limits the number of customers that come in to either hearing about it by word
of mouth, or by actually seeing the location. They do not accept appointments at all and strictly
run by a walk in, first come, first serve policy. This might prove difficult for people who are
running on a schedule because you never know how many people are in front of you in line.
Going along with this, Hairway to Steven only has two seats available. This creates a slow
process of going through customers. Finally, Hairway to Steven is an extremely small location
with limited parking. The only available parking is on the street and requires you to pay the
meters to avoid a ticket.
Based on the Competition in the area, Big Hoss Barbershop and Lounge would fit in the
mix by providing the services and amenities of The Quintessential Gentleman at a price relative
to Hairway to Steven and SportsClips. It would also attract customers looking for an actual
barber to cut their hair, in a larger and more widely appealing to different social classes. Along
with the cheap pricing and services of a barber; our bar and numerous forms of entertainment
would provide us a definite advantage over our competition. Providing drinks and entertainment
create an environment that men of a wide range of ages will look forward to. Big Hoss will not
simply be known as the place for great haircuts, but also as an enjoyable environment.
Conclusion
Based on the the analysis of the industry and market, we were able to conclude the
following projections of the first three years of business at The Big Hoss Barbershop. From
speaking to local barbers and researching online, we decided that the following number of
services would be performed, drinks sold, and amenities purchased daily, weekly, monthly, and
yearly:
Year 1
P
rice
D (x6)
a
y
Week
(x4)
Month
(x12
) Year
Yearl
y Sales
Buzz
Cut
$
12
Taper
and Style
17
120
90
5
7
42
Towel and
432
168
9
54
201
216
20
$86,4
00
6
$
$97,9
20
0
9
Hot
576
360
$34,5
60
0
1
$
288
480
0
20
Up
240
0
2
$
Shape
60
0
$
Scissor
Cut
1
$18,1
44
259
2
$51,8
40
Straight Razor
Shave
Full
Package
$
Top
168
201
6
$
3
Bottom
shelf shots
42
32
Draft
Beer
7
1
90
360
5
$
12
432
0
7
42
168
5
5
30
120
$12,9
60
201
6
$
$64,5
$10,0
80
144
$14,4
shelf shots
10
Rail
0
$
Drinks
8
48
192
6
Bottled
5
Massag
1
72
288
2
$
e Chair
230
4
$
Beer
00
24
345
6
7
42
168
3
$13,8
$17,2
80
201
$6,04
6
8
Purchases
Movie
$
Plays
3
18
72
864
$4,32
5
Juke
0
$
Box Plays
3
1
90
360
5
432
0
$12,9
60
Total
$445,
248
Year 1
Price
Day
(x6) Week
(x4) Month (x12) Year
Yearly
Sales
Buzz Cut
$12
5
30
120
1440
$17,280
Taper and
Style
$17
10
60
240
2880
$48,960
Scissor
Cut
$20
7
42
168
2016
$40,320
Shape Up
$9
3
18
72
864
$7,776
Hot Towel
and
Straight
Razor
Shave
$20
2
12
48
576
$11,520
Full
Package
$32
3
18
72
864
$27,648
Draft Beer
$3
6
36
144
1728
$5,184
Bottom
shelf shots
$5
3
18
72
864
$4,320
Top shelf
shots
$10
2
12
48
576
$5,760
Rail
Drinks
$6
5
30
120
1440
$8,640
Bottled
Beer
$5
5
30
120
1440
$7,200
Massage
Chair
Purchases
$3
3
18
72
864
$2,592
Movie
Plays
$5
1
6
24
288
$1,440
Juke Box
Plays
$3
9
54
216
2592
$7,776
Total
Year 2
$196,416
Price
Day
(x6) Week
(x4) Month (x12) Year
Yearly
Sales
Buzz Cut
$12
7
42
168
2016
$24,192
Taper and
Style
$17
13
78
312
3744
$63,648
Scissor
Cut
$20
9
54
216
2592
$51,840
Shape Up
$9
5
30
120
1440
$12,960
Hot Towel
and
Straight
Razor
Shave
$20
3
18
72
864
$17,280
Full
Package
$32
5
30
120
1440
$46,080
Draft Beer
$3
9
54
216
2592
$7,776
Bottom
shelf shots
$5
5
30
120
1400
$7,200
Top shelf
shots
$10
4
24
96
1152
$11,520
Rail
Drinks
$6
7
42
168
2016
$12,096
Bottled
Beer
$5
6
36
144
1728
$8,640
Massage
Chair
Purchases
$3
7
42
168
2016
$6,048
Movie
Plays
$5
2
12
48
576
$2,880
Juke Box
Plays
$3
15
90
360
4320
$12,960
Total
Year 3
Buzz Cut
$285,120
Price
$12
Day
(x6) Week
10
60
(x4)Mont
h
240
(x12)Year Yearly
Sales
2880
$34,560
Taper and
Style
$17
15
90
360
4320
$73,440
Scissor
Cut
$20
11
66
264
3168
$63,360
Shape Up
$9
7
42
168
2016
$18,144
Hot
Towel
and
Straight
Razor
Shave
$20
5
30
120
1440
$28,800
Full
Package
$32
7
42
168
2016
$64,512
Draft
Beer
$3
12
72
288
3456
$10,368
Bottom
shelf
shots
$5
8
48
192
2304
$11,520
Top shelf
shots
$10
6
36
144
1728
$17,280
Rail
Drinks
$6
10
60
240
2880
$17,280
Bottled
Beer
$5
8
48
192
2304
$11,520
Massage
Chair
Purchases
$3
12
72
288
3456
$10,368
Movie
Plays
$5
3
18
72
864
$4,320
Juke Box
Plays
$3
21
126
504
6048
$18,144
Total
$383,616
Sources:
bplans.com. Barber Shops Industry Report.
<http://www.bplans.com/industry_reports/report/barber_shops/7241>.
city-data.com. Towson, Maryland.
Hairway to Steven. Hairway to Steven - Barbershop. <http://www.hairwaytosteven.com/>.
SportsClips. SportsClips. <http://www.sportclips.com/index.html>.
The Art Of Manliness. Rediscovering the Barbershop.
<http://www.artofmanliness.com/2008/05/20/rediscovering-the-barbershop/>.
The Quinessential Gentleman. Services. <http://www.baltimorebarbershop.com/>.