From $1.75 To The Million Dollar Haircut: A Saga Of Networking To Success

This is the story of Joe Francis, who started out in 1962 cutting men's hair for $1.75 a cut. Today he operates over 500 hair salons called "Cost Cutters" and "City Looks," and is chairman of the board of the Barbers, Hairstyling for Men & Women, Inc. Minneapolis, Minnesota

How did he network his way to success? Let Joe tell you himself.


Joe's Story

One of the most effective ways to learn new things, to explore new ideas or to meet new and exciting people is through networking. Networking is nothing more than getting out there and putting yourself in front of someone. You can do it in person, by letter or by telephone.

When I first started in the barbering business, the average national price of a haircut varied from shop to shop by only about a quarter - between $1.50 and $1.75. Your income was determined by how many heads you could cut in one day. The average shop was a "one chair" business with maybe a helper for the busy times.

I had a "two-chair" shop, and I worked hard to keep the chairs filled. After six years in the business with this set-up, though, I began to feel locked in. I could cut only so many heads and charge only so much; prices were pretty much fixed. I asked myself, "Is this the way I want to spend the rest of my career?"

Luckily, about this time, I came across an article in a national magazine about a barber in Hollywood who was charging $25.00 for a haircut. Wow. He had made a name for himself as a "hair stylist to the stars." Who is this guy? How can he get away with that? More importantly, how can I do that? I had to meet him.

Soon I was in California in the shop of the twenty five dollar stylist. I wanted desperately to find out what he knew that I didn't know. Fortunately he was very approachable, very proud of what he did and eager to share his successful concept. He told me of how he introduced hair styling as an opportunity to break away from the traditional haircut and give the customer special attention and a new look. He had also up graded his shop, which appealed to a higher income clientele.

I certainly couldn't get way with a $25.00 cut in St. Paul, Minnesota, but I could offer something different - hair styling, and a new shop in a new neighborhood.

First I learned to do the European Razor Cut. It was a popular styling process in Europe but new to the United States. After two years of learning the new styling technique I opened the fanciest barber shop in the Twin Cities, in one of the highest retail rental areas. I charged, not $25.00, but $5.75 and still my fellow barbers were amazed at my price.

And my customers were amazed at how good they looked after a razor cut style. My new concept worked. People were more than satisfied and, best of all, they didn't object to the price.

As news of my shop spread by word of mouth, my wife called the local newspaper and they came to see the shop. They did a feature article on the new six chair hair styling salon. I had six barbers working, all of whom I had trained to do razor cut styling. The rest is history.

Networking Comes To The Rescue...Again

Joe's shop quickly grew into five shops and eventually he again felt the need for a new challenge. In 1968 he decided he ought to franchise his shops but he knew nothing about franchising. Remembering the results of networking with the California stylist, Joe realized he again had to network with someone who could help him.

A magazine article Joe read mentioned the International Franchise Association. He joined, met the people who were both emerging franchise owners and those who were eminently successful, and learned about franchising. At the association's conventions he met such people as Bill Rosenberg, the founder of Dunkin' Donuts, and Art Bartlett, the founder of Century Twenty One.

A 500 Shop Franchise Company

Joe learned well, and he created the first National Barber shops Franchise. Today his company franchises over 500 shops across the United States. He now serves as a member of the Board of Directors of the International Franchise Association. "Now I have a chance to share with others my experience just as others have done for me. Networking is a two-way street," he says. "You have to give as well as receive."

Political Networking

Some years ago Joe discovered that his local Senator was going to vote against post secondary education funding, which would cut off funds to barber school students, among others. Joe had to change his mind.

He decided that the best approach was networking, to get "in front" of the Senator. Luck was with him when he learned that the Senator would be one of the speakers at a luncheon sponsored by the local Chamber of Commerce. Each speaker was assigned a table, and Joe arranged to get there early and to sit at the Senator's table. As luck again would have it, the Senator sat next to Joe.

Joe introduced himself simply as, "Joe, the barber." In the ensuing conversation, the Senator mentioned that he badly needed a haircut for an important engagement that night...could Joe take care of him? You bet.

"Although I personally hadn't cut hair for almost twenty years, I had a plan," Joe said. "I would let him think he was coming to my shop, but, instead I would take him to my corporate headquarters. Our training director would give him his hair cut, and while he was confined under a drape, I would have a captive audience to listen to my views on the post secondary education funding bill."

Joe got his point across to the much surprised Senator. Interestingly, the Senator was himself a franchiser in the plywood industry. This combination of circumstances led to a genuine interest in Joe's views. The Senator became an ally and was very instrumental in helping Joe's industry.

"I've had many more networking successes both here in the United States and in countries around the world," Joe says. "When properly approached, people are willing to help you and to share their experiences. All you have to do is ask. That's what networking is all about."

Joe Francis Senior was a great success story. From an ordinary barber, in a one chair place, to becoming a 500 shop franchise company and being named Entrepreneur of the Year was a great saga of grit, determination and, above all of what networking can do.