Chloe Randall

Energy bills make up 40% of hair & beauty salon costs, according to research

By Chloe Randall | 26 April 2023 | Movers & Shakers, News

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According to research by Uswitch for Business, energy bills make up 40% of the average hair and beauty salon’s total business costs.

The research also revealed that more than 11,000 salons are financially struggling, with 24% saying they find it challenging to pay their energy bills.

These findings come amid reports that clients are cutting spending in salons, with 40% choosing less expensive treatments, 35% leaving longer intervals between visits and 29% leaving lower tips.

To address these costs, 32% of salons have increased their prices and some have made energy-efficient changes, such as turning off or reducing air conditioning or heating and investing in better appliances, and training staff in energy-efficient measures.

If energy costs continue to rise, 44% of salon owners have reported that they may have to reduce their treatment menus, and one in three said they may have to downsize or close.

With inflation expected to remain high in the cost-of-living crisis, Uswitch for Business estimates that salons who have fallen out of contract could be paying up to 50% more than those on a negotiated deal.

Meanwhile, four in 10 of those salon decision makers (40%) feel anxious about their business, while one in five (20%) have had to ask family and friends to help cover business costs.

“The hair and beauty industry is an essential part of the UK economy, providing jobs and services to millions,” says Jack Arthur, energy expert at Uswitch for Business.

“However, reduced footfall and sky-high energy costs put salon and spa owners in a really difficult position. Business decision-makers should make sure they are aware of the terms and end date of their current energy contract so they can shop around for the best rates at the time of renewal. If salon owners have concerns about paying their bills or if they aren’t receiving the right level of support, they should contact their energy supplier as soon as possible.”