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How He REVOLUTIONIZED the Subscription Model for Hair Cuts?! (ft. Jacob Meltzer)

πŸ“… February 2, 2024 ⏱️ 1:08:40 🎀 Jacob Meltzer, Tommy Mello

Chapters

Click to jump to section

  • 0:00
    When is the right time to grow locations?
  • 3:13
    Jacob's path: biology degree to student leadership
  • 6:25
    The membership metrics & breakeven
  • 12:49
    Hiring people who show up, no drama
  • 19:13
    Membership base drives business value
  • 22:27
    What separates a top store
  • 25:45
    Social media strength doubles the company
  • 28:55
    The bank cycle of funding expansion
  • 35:23
    Start with the end in mind
  • 44:58
    Teaching staff leadership & management
  • 48:08
    Systems and manuals from day one
  • 54:28
    The Craigslist influencer marketing story
  • 1:07:24
    Driving Uber while opening three stores

Speakers

J
Jacob Meltzer
Founder & Operator, Membership-Based Haircut Business
T
Tommy Mello
Host / Founder, A1 Garage Door Service

Key Takeaways

✦

The subscription haircut model is built on clear metrics: a member who comes every three weeks breaks even, and coming more often means they save money β€” which keeps them loyal and coming back.

✦

A recurring membership base makes each location worth more than its EBITDA alone would suggest, because the predictable revenue raises the enterprise value of the whole business.

✦

Deciding when to open the next location comes down to starting with the end in mind β€” knowing your ultimate goal shapes every growth decision far more than chasing store count.

✦

Growth follows a bank cycle: open stores, wait roughly a year to build the client base and cash flow, then go back and 'beg' for money to open the next batch.

✦

Hire people who simply show up every day and don't bring drama; a strong stylist with a great personality and a tight book can clear over $100k a year.

✦

When evaluating whether a store is worth acquiring, a location kicking off around 15% to the bottom line after a short ramp-up is the kind of number that justifies the deal.

✦

Building operations manuals and systems from day one on store one β€” plus investing in staff leadership, management, and time-management skills β€” is what lets a single shop scale into a chain.

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