alt Hacker NewsI always wondered about the nail / foot spa stores. What is it about these businesses that makes them such good defaults when nothing else seems to be able to survive?
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Nail salons make a lot of money. manicures and pedicures cost a lot, depending on the class level they might be $50-$500. Supplies cost almost nothing. The workers are usually immigrants making very little living in communal housing.
Nail salons have been opening right next to each other in my area, so I've been pondering this for awhile. It may just be a question of starting capital. You don't need much to start a nail salon. They don't have special furniture (the foot places do, but I'm just talking about the manicure places). They stock only a tiny amount of supplies. They don't need a web presence, or a lot of marketing in general. They don't require special equipment or stock nontrivial amounts of dangerous chemicals.
The biggest cost is labor, but labor money isn't something you need up front, since presumably at that point you have money coming in.
I realize everyone who's watched Breaking Bad thinks it's all about money laundering, but that's not as easy to do anymore, at least where I live, and the nail salons are proliferating.
Same in other European countries, usually the rumors are they take advantage of business sponsorship activities, or some kind of money laundry, taxes evasion.
One thing that isn't brought up is that businesses like these are a third space, especially for women. They go there to hang out, chat, destress. So there's always going to be demand.
Cheap to patronize, low barrier to entry, and can’t be done over the internet.
My guess would be that for middle class people, it's a simple luxury that is considered worth stretching for and reasonably easy to budget around.
Incredibly low capex and opex so once you've got it running you can basically just throttle the business in accordance with demand.
I always think that they're fronts for money laundering. They're easy to set up and don't require lots of expensive equipment and they're probably mainly cash based (never visited one, so guessing here).
Laundry.
Logistics. They tend to act as the maul for unethical products.
Glasgow at one point had eight American Candy Stores that were always empty but been operational for years. Not even good American Candy.
They don't have inventory/consumables which makes money laundering easier. The low transaction cost makes paying cash normal. The primary cost is labor and they force the indentured employees to pay it back for 'living expenses'.