SUB barber cuts his losses

Paul Panas has the hook up on quality, inexpensive haircuts.
Yet, UNM wants the small business owner to dig deeper into his pockets to continue trimming up students.

Panas signed a five-year lease agreement with the SUB that raised his monthly rent by $200, and by the fifth year, his rent will be doubled.
“Most of the students say they come here because of the prices, the haircuts and that we’re a mom-and-pop shop,” he said.

Walt Miller, Student Life vice president, said basic economics drove the University’s decision to raise rent on SUB tenants.

“Heat and utilities have gone up, and they have to pay their fair share,” he said. “Everybody gets an increase.”

As a result, Panas’ SUB basement business, Hook You Up Barbershop, has been forced to raise haircut prices from $8 to $10. He said he explained the situation to customers accustomed to paying $8 for a haircut.

“The real estate department came and all of a sudden, out of the blue, said, ‘We have to match real estate because there are a lot of people who want this spot, and we figure we have to go and raise your rent to keep up with inflation and the real estate market,’” Panas said.

Thomas Neale, Real Estate associate director, did not return phone calls or e-mails this week.

Miller said other companies, such as MVD Express, have expressed interest in renting SUB property, but none have been serious.
Panas said he was unsure about how much his rent will be raised in upcoming years.

“Hopefully in five years we can negotiate and keep that locked in,” he said.

Miller said Panas’ rent hasn’t increased during his six years as a tenant. Meanwhile, Miller said, the New Mexico Educators Credit Union endured annual rent increases during that time.

Panas and his wife have been cutting hair for 19 years. The couple moved their business to UNM in 2004 after a similar incident forced the couple out of their previous location near Walgreens on Girard Boulevard. He said customer familiarity, satisfaction and low prices makes his business successful.

“What’s weird about barbering (is) you know all the guys by shapes and sizes,” he said. “So there is a guy who looks like me. He’s been here a long time. There is a guy named Hollywood, a little Spanish guy, who looks like Freddy Fender, and there is a guy named Tony who has been with us the whole 19 years.”

Although his rent has increased, Panas said he will continue to provide an inexpensive service to the UNM community.
“It’s all about the students and the staff,” he said. “The kids, the ones that graduate come back, too. They start as freshmen, and when they graduate they come back.”