LIST OF TRADE SECTORS

Contents

Executive summary

Sector overview

Nature of the trade

Start up

Legislation and regulation

Performance indicators

Investigation matters

Accountancy matters

VAT position

Statistics

Further information

Focus on "pricing policy"

The hairdressing sector is characterised by the huge variation to be found in the price of what is, essentially, the same service. Top celebrity stylist Daniel Galvin, for example, was charging around £300 for a full head of highlights in the early 2000s; a similar service could be obtained elsewhere for as little as £25.

A pilot survey by the Hairdressing Training Board in 1993 (Planning for the Future) identified a wide variation in price amongst even relatively 'ordinary' salons. Average salon prices for four popular styles in four British cities were compared as follows;

(£ average, 1993)

 
Bristol
Leicester
Newcastle
Sheffield
Ladies' cut/style
10.60
10.00
8.90
7.30
Men's cut/style
7.00
7.25
6.50
4.90
Perm
27.70
23.50
20.50
18.90
Colours
18.20
17.70
14.90
13.00

Note; these are not current figures, but are included as the latest available for illustrative purposes only

Furthermore, the survey identified significant price differences amongst salons within each city. Perm prices in Newcastle, for example, ranged from £6.95 to £44.00. An individual salon's prices might be affected by the following;

  • the skill of the proprietor and his staff and the reputation of the outlet
  • the quality (and therefore cost) of any products used
  • the extent of local competition
  • the location of the outlet and the socio-economic characteristics of the local customer base

In many instances, tariffs are not costed methodically, but simply reflect the local 'going rate' and customers' ability to pay. Many hairdressers are reluctant to increase their prices and believe that they will lose clients if they do so.

A list of prices is normally displayed. In some salons (for example Afro-Caribbean), however, this list is seen more as a rough guide to maximum prices than as a fixed tariff. In other outlets, prices may vary according to the time of day or as a result of special offers and promotions (see Nature of the trade: Customers, terms offered).