A Scots salon owner who is facing an energy bill price hike of more than 300 percent after her estimate soared to nearly £7000 a year has told how she's been left with no option but to increase haircut prices. Jodi Hain will now have to fork out an eye-watering £6720 for electricity alone at the Something Different Hairdressers in Guardbridge, Fife, as the cost-of-living crisis worsens.
The 34-year-old, who has run the small business for the last eight years after taking over from her mum Paula Tournier and auntie, previously paid £1610.32 a year before being given the new estimate earlier this week. She is now being forced to increase her prices by around six percent from October but has raised concerns that it may not be enough to keep the 40-year-old family business afloat.
The mum-of-one is calling for more support for small businesses who are not covered by the Ofgem price cap that applies to domestic customers. She said: “It’s going from £1600 a year to just short of £7000 so it’s more than tripled. You’ve obviously then got to think about all the monthly outgoings and where we can cut back to try and make money.
“But at the same time, the clients are a priority and you don’t want to out price them either because everybody is feeling the pressure. So you’ve got to ask how much you pass on the bills to them? It’s really difficult.
“I think after the pandemic, people have realised that they need their hair done for their own mental wellbeing and to feel better. It’s a trade that is needed but it's one of those trades where people can delay their hair a little bit longer than normal.
“So you’re not getting the same footfall as you normally would. We were like the best thing ever when we reopened so obviously people are conscious how much they need it done but they’ll also now be conscious about their own gas and electricity going up alongside the rest of their household bills.
“We might have to lessen our hours to trade and we’re having to put a price increase in place. I even joked about cutting hair in candlelight and wearing a head torch but the way things are going, you just don’t know until we hit the winter time.
“No one is going to really know how bad it’s going to get if nothing changes.”
The business owner, who works alongside another stylist, added: “Something needs to be done about these ludicrous prices because businesses don’t get any price caps unlike residential properties.
“We need more support for small businesses. Your outgoings are still outgoings at the end of the day but you’re not making masses amounts of money because you’re dealing with real people who are struggling with their own bills.
“We’ve not got the power to stand up to these huge companies. A lot of these small businesses got grants and bounce back loans during the pandemic and some of those are still being paid back now.
“So not only have you got your hike in gas and electric but you’re also still paying off previous debt. If these prices keep rising, the future of the salon is something we’d have to consider.
“Currently we’re looking possibly at a six per cent increase which is quite a big one for us. It may only be a couple of pounds on every cut and blow dry which is nothing in context but when you’re watching every penny, it’s quite a lot.
“But we’re not even sure that’s going to cover it.”
A Scottish Government spokesperson said: “The Scottish Government supports calls from businesses for measures related to energy prices, VAT reduction, staff shortages and handling business loans - desperately needed direct support that only the UK Government has the powers to deliver.
“Over the last 14 years, Scotland’s business community has had to weather a global financial crisis, a decade of UK Government austerity, Brexit, a global pandemic and spiralling energy costs.
“During that time, the Scottish Government has supported more than 100,000 small businesses across Scotland with rates relief of up to 100%, saving them thousands of pounds a year.”
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