Inflation also goes to the hairdresser

The runaway increase in prices is having a strong impact on hairdressers and beauty salons. Inflation also likes to get a haircut, trim his beard, and dye his hair. Specifically, according to a study by the Business Alliance for the Lowering of VAT on Personal Image, costs in this sector have grown by 27.2% in recent months. However, turnover is still 20.2% below that of 2019 (the last full year before the pandemic) and services related to social events such as weddings, baptisms and communions do not reach pre-Covid magnitudes either. In this context, only four out of ten establishments have closed during this month and, despite the above, 77.88% of the self-employed owners of hairdressing and beauty salons can find themselves with the irony of ending up charging less than their workers. So, where is the origin of the extra costs for a hairdresser? José Luis Azañon, spokesman for the Alliance, attributes this to three reasons: the latest increases in the Interprofessional Minimum Wage (SMI), which have reached 30% in the last three years, and the growth in labor costs for the self-employed ("90 % of workers in this sector are self-employed, "says Azañón); as well as the increase in the prices of the products they use in their activity (for example, dyes) and an electric bill that does not stop growing. "The dryers are very hot and we have to have the air conditioning at full capacity, for example," explained the spokesman for the Alliance who does not hesitate to speak of "a very important stick." In this sense, he has estimated that they have gone from devoting three out of every 100 euros earned to paying electricity to up to 10 euros. Regarding the increase in the cost of products used by hairdressers, Azañón lamented that in the personal image sector "we have not been able to transfer this increase to customers, while manufacturers have done so with manufacturing and distribution costs." Asked about the future, the spokesman for the Alliance has described the situation as "unbearable" and trusts that the Government will finally lower the VAT for the sector from 21 to 10% during the next budget process. "The sector has lost more than 35% of its critical mass," he warned in connection with the above, referring to the closure of some 50,000 establishments since March 2020, leaving some 35,000 hairdressers and beauty salons throughout Spain. Related News standard No Insolvency proceedings increased by 22% in July Servimedia The sectors that registered the greatest increase in insolvency proceedings were education (175%) and real estate (83.35%) and agriculture, livestock, forestry and fishing activities ( 71.43%) according to data from Axesor «We paid 60 euros per month for electricity, now more than 150» «Before we paid 60 euros per month for electricity, now more than 150 euros» , point out from Molina Peluquería & Spa . Located in the Madrid neighborhood of Moratalaz, from this business, they have recognized that they now have "a smaller margin" in the case of the products they use for their activity and admit that the same, as in the case of dyes, have returned to rise significantly in recent weeks. After an initial increase of 50 cents for the use of these products, at the beginning of Covid, they now maintain the price for their customers. "We work many more hours, earning less," he summarizes.

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