Haircut index

In a world where government statistics seem to come from an alternate universe, regular folk like us are left grasping for honest anecdotal evidence of the times we live in. From Terri Lonier comes a classic - the haircut index.

As a microbusiness owner, however, I’ve found one reliable index that won’t show up on most economic forecasts, one I’m calling the Haircut Index. Let me explain.

In my small town in New York’s Hudson Valley, there’s a hair stylist who is known for his impressive talent with haircutting shears. Walk in with a shaggy head and after a brief time with Sean’s nimble work using scissors or razor, you’ll leave crisply styled. As a result, his appointment book is always full, often months in advance. While I’m delighted every time he cuts my hair, I’m usually too disorganized or haven’t planned far enough in advance to get a spot on Sean’s calendar.

The other day I called his salon, hoping to snag one of his rare cancellations (self-employment does have its scheduling benefits). Imagine my surprise when the receptionist said, “Terri, next week Sean has an opening on Wednesday at 11, and two on Thursday at 2 and 4. Which do you prefer?”

It was then that it hit me: the economy had truly changed. For Sean to have three openings in the coming week signaled a major shift in demand.

Sitting in his chair the following week, I chatted with Sean about the rarity of his availability. Was this a fluke, or a significant economic signal? “It’s a reflection of the economy,” he said. “When things get tough, people will forego buying a pair of jeans or going out to eat, but still invest in a good haircut, because it’s something they live with every day.” But the recent instability in the overall market has brought a whole new level of uncertainty, he added. “When I see this many openings in my appointment book, I know the financial concerns are deeper than usual.”

One-Person Business

Image credit: malias (license)