Let’s talk about the latest effects from the pandemic on our industry.
For the past five to six weeks, 85% of our industry has been unemployed. Some stylists have actually maintained working, but the majority of us have not.
Just this week, some stylists are returning or learning they can return to the salon in the next week or so.
And some of us, like in California, have been told it will be months with no expected timeline.
Now that we’re starting to step out of the we’re-home phase to what-will-this-be-like-when-we-return-phase, one big question coming up is in regards to personal protective equipment (PPE).
As states start to reopen, there is a huge request for us to bulk up on disinfection and sanitation. Because we have to incur all of these additional business expenses, there’s a lot of talk of whether we should do a PPE surcharge on all of our tickets.
Today, we’re taking a look at different views so you can make an educated choice for your business.
PPE expenses we might face
When we’re looking at the heightened costs, we’re thinking things like:
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Hand sanitizer
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Neck strips
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Additional disinfectant
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Bleach wipes to wipe everything down
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Additional drapes
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Enough smocks or aprons for you to change between each guest
A lot of these things we weren’t doing before, right? And pulling off washing that volume of drapes is a lot. So if you’re feeling like to do all of these things, you’ll incur some cost, you’re right.
Consider fixed versus variable cost
Think about the difference between fixed and variable costs. The cost to get all of those additional drapes – if you didn’t have one drape per guest before – will be an expense.
For solo stylists, it could be between $100 to $200 (if we’re being generous) to get enough drapes to take care of your guests, right? And maybe $500 to get enough aprons to change between each guest.
Let’s say it’s $200 for the disinfectants, bleach wipes, cleaning supplies, and additional gloves and masks for you and your clients.
When we take a look at everything we need to prepare to reopen as a solo stylist, it looks like, on the high side, $1000 or less just for PPE.
As a salon owner, you might need to do this at scale, because you don’t need 10 drapes, you need 100. It will be maybe $2,500 on the generous side to stock up on all these things.
That’s a huge expense, especially if we’ve been out of work, right? So then you start to think maybe you’ll charge a safety fee.
That might be a good idea in your business, but first, really think why you’re putting that into place. Begin by looking at what is a fixed cost and what is a variable cost.
Fixed cost
Fixed costs are what they sound like: costs that don’t change. Things like drapes, aprons, even disinfectant to a degree, will be fixed costs because you make a major investment upfront, yet the cost per guest is minimal.
Because you can use those drapes and aprons over and over for years, the cost per use over time becomes something like six cents a guest. It is a huge expense upfront, but you won’t have to order new ones for a couple of years at most.
Variable cost
A variable cost is a cost that varies depending on how many you need to buy. Gloves and bleach wipes would be variable costs because you’ll likely use more gloves per guest and have to buy more.
How much does that cost per guest? Let’s say you use three Clorox wipes, three pairs of gloves, and maybe one ounce of disinfectant per guest. When you do the math, the cost per guest is probably less than $1.
While the overall investment is huge, the cost per guest is actually fairly minimal.
So those fixed costs are more cost of doing business versus actual safety charge, right? Begin to have an idea shift towards that mindset when it comes to PPE.
Let’s talk about PPE charges
If you feel like this is crazy, you don’t have the money for it, and you’re going to put a PPE charge on every ticket, think about this:
Imagine you go to the grocery store, get in line to go in, and wait for several minutes. There’s an employee outside wiping down carts and baskets while another is doing counts and letting people in. Once you get into the store, all the cashier booths – with these huge plexiglass dividers between you and the cashier – are open to get people through. Some employees stock shelves while others tell you where to go and where to line up to check out. All the employees are wearing disposable gloves and masks likely provided by the store.
There are so many people working in the grocery store and all in PPE, but they have to do it to stay safe. The grocery stores are taking on these additional employment costs, staffing supplies, tools, and resources to stay open, including PPE costs.
So as a consumer, how would you feel if every time you went to the grocery store, even just for bananas, they added on a $3 PPE charge?
It wouldn’t feel great, right? Almost like a punch in the gut every single time. Imagine getting that charge at every single store. It might feel infuriating, irritating, personal, or like you can just never move on.
Is that the kind of experience you want to give your guests? One that says, “I’m hurting, you’re hurting, let’s hurt together.”
Or do you want to be the sanctuary for them?
How to reframe your PPE investments
That’s not to say you should absorb additional PPE costs but maybe reframe them.
For example, let’s say your client forgets their mask. They can’t be in your building without one, right, so they need to pay for one of yours. That is a social standard.
But think of things like gloves, sanitizer, Clorox wipes, and drapes as the cost of doing business right now.
Instead of looking like we’re nickeling and diming, look like a successful business owner. You have a few options to reframe these expenses:
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Absorb the cost knowing you will make more money on the flip side of this. Some stylists and salon owners are choosing to walk away from their businesses. That means there will be hundreds of thousands of clients looking to get their hair done. The demand will be high, not low. Keep in that in mind because we will come back and take on a huge influx of cash.
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It’s likely time for a price increase. Instead of doing a PPE charge, you can just say your prices have increased by $5 since their last visit. It’s not a PPE charge; it just is what it is.
Think if you truly want to nickel and dime with a safety charge. Think how, as a consumer, you would feel if you went to buy that bunch of bananas and there’s a $3 safety charge versus the cost of bananas just went up $1. Would you rather pay a dollar more for a bunch of bananas than have a safety charge every time you checked out?
It’s the same principle. Just framed differently.
When you’re looking at things like PPE, think long term. Think reframe. Have powerful conversations, put yourself in the other person’s shoes, and make wise business decisions for longevity.