The cost of a haircut

The cost of living crisis means hairdressers and salon owners are now super-squeezed by energy costs as well as a drop in client spending. This is brilliantly illustrated in a recent video produced by the British Beauty Council, The cost of a haircut’, showing how the daily running cost of a hair salon has increased by 94% since 2019. Each customer visit to the salon requires services which rely on energy to help create their personal experience. Equally, a report published by the BBC, highlights that the cost of living has risen at the fastest rate in 40 years, putting economic pressure on the consumer as well as the hairdresser. The result is a decline in revenue and business growth alike. Let’s take a look at what’s going on.

Daily running costs

The cost of a haircut takes the viewer on a journey around Neil Moodie’s Studio in London, to get a first-hand account of the daily running costs. The film explains that 77% of hair and beauty businesses are paying higher energy costs than in 2019. Much of the energy used in a salon, as the film shows, is related to keeping standards of hygiene high. Non-negotiables for a hairdressing service include a clean towel, hot water, and air-conditioning to regulate airflow. Not to mention vacuums for cleaning up hair and proper lighting. Hairdressers can only work with sufficient energy, and this rising expense is hitting salons, and small businesses, hard. 

The recession

The recession is also impacting the running costs of businesses. Not only will the salon’s expenses be affected but also each client’s living costs, which could lead to a decrease in business. Regular customers may have to cancel their usual services to save money, further adding to the economic pressure on each salon. A decline in footfall will affect the revenue, meaning salon owners must be cautious when spending money. In an article about surviving the ongoing recession, the owner of two salons in London, Anthony Laban explains that Covid closures have him keeping tight stock control and taking overheads because having money in the bank is the best insurance. 

Support

Terry Longden, at Terry Longden Creatives, worked through the 80’s recession and says recessions come in cycles. The current economic difficulties many businesses face will occur again at some point in our lifetime and ensuring these businesses receive the proper support is crucial for the future. We need to nail the support system now, so we are ready when the next crisis appears! The British Beauty Council has announced it will continue to support business into 2023, an act that should inspire everyone to help where they can.