As beauty industry professionals its more common than not to be uncertain of what changes are happening within our economy. We are artist and love our craft which is often where our main focus is. It’s important to keep up with the fluctuations within our economy to be successful behind the chair. Tariffs are impacting our industry in a big way and we are here to help you understand and make it less daunting so you can continue doing what you love with confidence and passion.
What are Tariffs and how are they Impacting the Beauty Industry?
A tariff is a tax that a country's government imposes on imported goods. These taxes are usually collected at the point of customs clearance. The US has raised these fees for imported goods as a way to generate revenue for our government and make imported goods less competitive with American made goods. Naturally, higher costs for the suppliers means they will have to increase their cost to the consumer (us). Many beauty brands are imported which is why you may have noticed rising costs for your products in the salon.
Understanding your Numbers & Maintaining Inventory Records are Key
Being intentional is a core value in our salon. We are intentional in how we do hair, treat people, and plan for our business. When it comes to supplies and retail often times, the more you purchase the more you can save. Brand loyalty is more ideal than ever and can come with big benefits such as free backbar products, education, or supplies when you spend a certain amount. We have be more intentional than ever when stocking our shelves and color space. If you aren’t keeping great track of your retail and backbar stock, now is the time to do so! At Thirteenth and Washington Salon have created a Google Drive spreadsheet to keep track of what we have in stock, how much we paid for the item, resale price, and how many dollars are sitting on the shelves. Not only does our accountant expect this information quarterly but it also allows us to see which items we use most often or how quickly they sell.
Many brands have sent out emails to salons and stylist informing of the potential or upcoming tariff increases. What we have experienced was a very graceful heads up along with tangible support to help our salon make more profit. The brand we carry offered us a conditioning treatment line which can be chosen to add on to any service by our clients. It helps their hair, helps us, and helps soften the blow of rising cost. I invite you to think of ways you can add value to your services in addition to raising your prices. Do you have any backbar treatments that you forget to mention or use? What do you have on hand that hasn’t sold in a while that you can package as a gift with purchase?
We Pivot & Plan, not React
While only purchasing what’s made in America sounds like the logical way to avoid the tariff increase, the reality is most of our wet lines are from other countries. In our salon we have fallen in deep love with the ethics and quality of the brand we carry, which so happens to be made in Italy. Until we can fall in love with an American made line that aligns with our values and integrity we will continue to ebb and flow with the line we most enjoy. It’s best to budget and plan to use what you know will create beautiful results so you’re not sacrificing quality amongst your inevitable price increase. Trust me when I say, clients are willing to invest when they receive the results and experience they desire.
If you’re reading this and feeling overwhelmed and panicked by the thought of tariffs and how your business is going to offset the effects, pause. Take a moment or even a few days to acknowledge your emotions and accept that they are valid. Maybe plan to do something you enjoy like hiking or reading a mindless book. When you feel like your head is in a neutral space again creating your course of action will come.
Clear is Kind, communicate with Clients Authentically
Now let’s chat about how to best communicate all this information with our clients. Here’s a few suggested scripts when communicating an upcoming price increase:
"Hey Jane! As you may have heard, the new tariffs are having a strong impact on the beauty industry. Our salon will be refining our service and retail offerings to reflect the increase in the next month. Once we have our updates complete, we will be sending out an email with our menu of services so keep a look out. We plan to add a few new express services which I personally am very excited about!"
"Amanda, we are getting close to the need to replace your extension hair. With the new tariffs, it has increased the cost of sourcing hair ethically and stocks are low. We can continue to use the brand we have been using or try to source a lower price point brand which may have a shorter life span. What route would you like to take moving forward?"
Most clients don’t want to find a new stylist just because you’ve increased your pricing. They want to be in your chair with more variety to save time, a leveled up guest experience, and consistent results. Take a look at your current service offerings and figure out how you can shorten the time & cost while still making clients feel refreshed. Some ideas could be a conditioning treatment added to the services you’ve raised prices on and creating mini refresh color sessions at a lower price point than your average color maintenance sessions.
Lean on your Industry we are in this together
Remember that you’re not alone in this! Community over competition will help us all navigate shifts like this always. Reach out to your fellow salon owners, sales reps, and brands for more ideas. Host a coffee and connection in your space to discuss the topic. I guarantee your invitation will be well received! You’ve got this!
