Energy costs see 1 in 4 salons mulling closure

by | Apr 18, 2023 | Business, News

Uswitch survey illustrates impact of high bills alongside fewer client visits

More than a quarter of salon owners are considering closing sites (28 per cent) or downsizing their salon (29 per cent) as they struggle with high bills and fewer client visits. According to a survey by comparison site Uswitch, energy bills make up 40 per cent of the average hair and beauty salon’s total business costs.

Two-fifths of salon owners say they are anxious about the future, with 24 per cent struggling to pay their energy costs and one in five having to ask family and friends for financial help.

Uswitch for Business estimates that salons currently out of contract on their energy bills could be paying up to 50 per cent more than those on negotiated deals. Nearly a third (32 per cent) of salons have raised their prices in response to energy costs.

Some salons have reduced staff or reduce shifts (18 per cent), with a quarter seeing employees leave for better paying roles (25 per cent) and 21 per cent cutting business hours. Salons also told of customers selecting cheaper treatments (40 per cent), leaving longer between appointments (35 per cent) and leaving lower tips (29 per cent).

“Business decision makers should make sure they are aware of the terms and end date of their current energy contract so they can shop around for the best rates at the time of renewal,” said Jack Arthur, energy expert at Uswitch for Business.

5 tips to avoid overpaying on business energy costs

Uswitch for Business’ Jack Arthur shares his insight

1. Check your contracts – both gas and electricity
“Dual fuel agreements do not exist in the business market, which means that you will likely have different arrangements for your gas and electricity. Make sure you’ve got the details of both contracts, including your current supplier and take note of the contract types, duration and end dates.”

2. Identify your ‘switching window’
“The ‘switching window’ is the period where you can change to a cheaper deal if you’re on a contract you’ve not chosen, your tariff has expired or if you’ve taken over a new premises.”

3. Seek expert advice when it comes to finding a competitive energy deal
“Finding the right deal for your business can take time, so if you are struggling to understand the type of contract needed for your firm and its usage, consider speaking to an energy broker. Sites like Uswitch for Business can help you during your search.” 

4.Struggling to pay your bills? Speak to your supplier ASAP
“Contact your supplier as soon as you can if you are worried about paying your business energy bills. Suppliers may be able to work with you to agree a payment plan you can afford more easily.”

5.Understand how to improve your businesses energy efficiency
“You can make a difference to your overall consumption by considering energy efficient measures, such as energy saving lighting, as well as turning off other technology when not in use. If you don’t have one already, consider installing a smart meter or a half hourly meter to understand where you are wasting energy and to improve the accuracy of your bills.”

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