The prices for a new haircut have become more expensive in the past year. However, many companies are still struggling. There are many reasons for this.
Consumers had to pay more for a haircut at the hairdresser last year. The prices in 2021 increased by around four percent on average, as the Central Association of the German Hairdressing Trade announced on Monday.
On average, women paid a little more than 66 euros per visit, men just under 27.50 euros. However, this has little to do with the currently high inflation. “The main reason for this price increase was the additional time required for occupational safety and hygiene measures as well as the costs for protective equipment and test offers,” it said.
Economic situation tense despite higher prices
Despite the higher prices, the economic situation remained tense due to the Corona crisis. According to forecasts by the Federal Statistical Office, the total taxable turnover in the hairdressing trade last year was around 5.9 billion euros. According to the association, that would be another 5.6 percent less than in the already bad year 2020. At that time, sales had collapsed by almost twelve percent to 6.21 billion euros.
According to the association, due to the low sales, more salons are slipping into the category of VAT-exempt micro-salons. The annual turnover there is therefore less than 22,000 euros. Due to the elimination of tax, these companies could offer unrivaled low prices.
It was a “massive and unfair competition” emerged. “These lead to significant distortions of competition, above all to the detriment of companies that operate sustainably, and as a result have, among other things, negative effects on training performance and quality-oriented specialist development,” the association said.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
