BABTAC reveals the effect of cost-of-living crisis on beauty industry

From water costs to electricity prices, over 93% of the salon owners spoken to by BABTAC have reported a considerable increase in their bills over the past year.

Approaching half (44%) of the BABTAC members surveyed had seen a 50% increase in utility rates, while 40% reported a 100% increase. One in ten acknowledged they could be facing a 200% increase year-on-year, placing many businesses at risk of closure.

“The cost-of-living crisis and rise in energy prices is of course a huge concern for many beauty businesses,” explains chief executive of BABTAC, Lesley Blair. “Although some initial government support has been provided…the hike in bills is just another blow to those who have already had to contend with the negative impact of the pandemic, which was estimated to be an average financial loss of £11,603.”

For some beauty businesses, even attempting to change providers is proving challenging: “The difficultly we experienced was that there were very few [energy] companies that wanted to supply us,” reveals the owner of Lily’s Beauty Salon, Gemma Holt. “One company even agreed on a price, only to later say they could not, due to the fact we are a beauty salon and therefore were considered too high risk!”

Other struggles acknowledged by BABTAC include last-minute appointment cancellations caused by rail strikes and difficulties replenishing essential supplies due to postal disputes. As such, many beauty businesses have already made the difficult decision to increase treatment prices or decrease payroll, resulting in job losses.

Moreover, a broader decrease in consumer spending, caused by the cost-of-living crisis, is compounding the issue, as even regular clients reconsider the cost of their beauty treatments. There are also increasing safety concerns as customers look to save money via unregulated treatments.

While the outlook appears uncertain, beauty business owners should take the opportunity to build trust with their clientele, through open conversations around price changes and a celebration of their staff’s expertise and safety procedures. BABTAC is also urging consumers to support gift voucher schemes, which could be used to promote future trips to beauty businesses.