About 90% of Beauty Professionals Feel the Rise in Material Costs - The Reality of Salons Struggling with Price Increases

As raw material costs and prices continue to rise, the beauty industry is also greatly affected by the rising costs of drugs and consumables.

This time, we conducted a survey of 47 beauty professionals, including beauticians, barbers, salon managers, and staff, regarding their feelings about price fluctuations in material costs, the burden they feel, their responses to price increases, and the criteria for selecting suppliers.

About 90% of salon professionals feel the price increase of materials and supplies - The impact of drugs and the like is remarkable

When asked, 'Have you felt a price increase in materials and supplies used in salons over the past year?', a survey of 47 people found that 'very much' was 42.6% (20 people), and 'somewhat' was 48.9% (23 people), totaling 91.5% who feel the price increase.

Regarding items that feel price increases, 'hair coloring agents' were the most common with 35 responses (74.5%), followed by 'bleaching agents' with 24 responses (51.1%), 'shampoo and hair care products' with 24 responses (51.1%), and 'permanent wave solutions' with 21 responses (44.7%).

In addition to drugs, 'neck paper, cotton, etc. consumables' were mentioned as items that feel price increases with 12 responses (25.5%), 'gloves' with 8 responses (17.0%), and 'towels, wraps, capes', etc. It was found that the wave of price increases is spreading across a wide range of categories essential for treatment.

The following responses were also received.

▼Example of a response

'The material costs of coloring agents and permanent wave solutions have risen significantly recently, and just gathering the necessary materials has increased the burden. The more popular the drug, the easier it is for the price to rise, and it has become difficult to manage costs to continue procurement without compromising quality.'

'In addition to base materials such as coloring agents and shampoos, disposable items such as gloves and paper products have also risen in price at the same time, and the ratio of material costs is definitely increasing, which is a challenge.'

The burden of material costs is 'somewhat large' or more for about 80% - The impact on management is at a serious level

When asked, 'How much do you feel the burden of material costs in salon operations?', a survey of 47 people found that 'very large' was 29.8% (14 people), and 'somewhat large' was 48.9% (23 people), totaling 78.7% who feel the burden. 'Neither' was 12.8% (6 people), and 'not very large' and 'don't know' were each 4.3% (2 people).

For small-scale salons and individual operators where cost increases directly affect sales and profits, it is clear from the numbers that the rise in material costs is an issue that goes to the root of management.

▼Example of a response

'I am struggling with the fact that the repeated price increases of consumables, coloring agents, and utilities are not keeping up with the transfer to menu prices. It is almost at the limit of what can be done with individual efforts to suppress the decline in profit margins.'

'There are mostly price increases that are pressuring profits. However, if you simply raise the treatment cost, customers will decrease, so you can't move.'

The most common response to price increases is 'partial menu price increases' - Salons that overcome the situation by reviewing usage and materials

When asked, 'Please select all the actions you have taken in response to the rise in material and supply costs', a survey of 47 people found that 'only raised prices for some menus' was the most common with 20 responses (42.6%).

This was followed by 'raised treatment fees' with 15 responses (31.9%), 'reviewed the materials used' with 13 responses (27.7%), 'reviewed suppliers' with 11 responses (23.4%), and 'started managing usage more carefully' with 10 responses (21.3%). On the other hand, 'have not done anything yet' was only 1 response (2.1%).

When asked, 'Please select the option that is closest to your current thoughts regarding treatment fee increases', 'already raised prices' was the most common with 34.0% (16 people), followed by 'want to raise prices soon' with 21.3% (10 people), and 'want to raise prices but am hesitant' with 21.3% (10 people). Combined, more than 70% have already implemented or are considering price increases, and the situation is clear that price revisions are a realistic option for responding to cost increases.

▼Example of a response

'Raising treatment prices has resulted in fewer customers than before the increase. In particular, the price increase of hair coloring agents has been significant, and raising treatment prices since last year has been painful. It is an unavoidable situation, so there is no choice but to provide services that match the price.'

'Accompanied by the price increase of drugs, treatment fees have been raised little by little, but since a large price increase is not possible, I am wondering if there is any other approach. Other than price increases, it does not directly lead to an increase in sales, so I am in trouble.'

'I am worried that the price increase will also affect customers.'

The most important condition for suppliers is 'affordability' - Trends where absence of out-of-stock and delivery speed are also valued

When asked, 'Please select up to three things you prioritize when selecting suppliers', a survey of 47 people found that 'affordability' was the most commonly selected with 26 responses (55.3%).

This was followed by 'desired products are not out of stock' with 19 responses (40.4%), 'speed of delivery' with 17 responses (36.2%), 'affordability of shipping fees or free shipping conditions' with 15 responses (31.9%), and 'wide variety of products' with 14 responses (29.8%).

While the importance of price is most emphasized, reflecting the heightened cost awareness, it is noteworthy that 'absence of out-of-stock' and 'speed of delivery' are ranked second and third. It is clear that stable supply capacity to prevent interference with treatment and business due to unavailability of materials is also an important factor in supplier selection.

When asked, 'Have you ever had trouble with treatment or business due to sudden stock shortages?', 'sometimes' was 42.6% (20 people), and 'often' was 6.4% (3 people), and it was also found that about half have experienced trouble due to stock shortages.

▼Example of a response

'It is troublesome that you cannot do it even if you try to order because it is out of stock.'

'Due to a shortage of naphtha, gloves for coloring are no longer available.'

'It often takes time for the ordered items to arrive.'

The common theme of worries about procurement and material costs is 'caught between price increases'

When asked, 'Please tell us what you are most worried about regarding procurement and material costs' in a free response question, it was revealed that many respondents are facing the dilemma of 'costs are rising, but they cannot raise prices significantly for fear of customer attrition'.

There were also voices pointing out the complexity of procurement management and the difficulty of cost reduction while maintaining the quality of materials.

▼Example of a response

'I am worried that if I raise prices several times, customers may leave. Also, since I am procuring from multiple vendors, management is complicated, and I am looking for a convenient supplier where I can order everything at once.'

'Over the past 1-2 years, overall material costs have risen, and in particular, the cost increase of coloring agents and treatment agents is directly affecting the site, so I feel the burden. Since there are price differences depending on the supplier, I sometimes hesitate to switch, and it is a challenge to maintain quality while adjusting costs.'

'I am worried that the price increase will also affect customers.'