Rising costs and a saturated market is making it harder than ever for nail salons to survive, with many business owners taking home less than minimum wage. BETHANY WALES spoke to technicians in the East about how they plan to change that.
If you’re planning on getting a manicure this week, you might find you’re paying more than you’ve been used to.
It’s after more than 5,000 UK nail salon owners joined forces to increase their prices this month, on what has been dubbed “National Nail Tech Price Increase Day”.
Each business taking part in the price hike is different, according to the Nail Tech Org (NTO), which is behind the campaign.
The company is offering what it describes as a "free masterclass" for nail technicians, allowing them to calculate their own business costs and ultimately create a new "pricing structure that supports us now and in the future".
And while some customers might be annoyed by yet another expense going up, many people working in the industry say it's been long overdue.
Michelle Rhodes owns the Nail Garden in Newton Flotman.
She said she had no choice but to raise her prices in order to stay afloat.
“My costs have gone up by around an extra £1,000 a month. This is extra money I’m having to put back into the business to keep it running.
“The main increases have been in single use consumables, such as files, wipes, gel remover and such.
“But there have been many other increases, including energy costs, rent, and insurance.”
Jo Hearle, the technician behind Jo Hearle Beauty and Nail Salon in Harlston, agreed.
She said: “With suppliers you don’t get much for £100 anymore.
“Prices started going up sharply two years ago - I’ve seen everything increase by about 30pc since then.
“The vast majority of my income is going on the rent and all the bills just to stay afloat.”
And the rising cost of running a business is having a major impact on business owners’ income.
The NTO estimates that most nail bar workers end up being paid, on average, £7 per hour after business costs, which is lower than the national living wage of £11.44 per hour.
Amy Guy, NTO founder, said for many salon owners, putting up prices was a matter of survival.
She said: “We want to create a shift so the industry becomes sustainable so we can keep working for years to come.
“The biggest problem in the nail tech industry for a long time has been pricing, but a lot of prices aren't realistic for business owners.
"I get no one really wants to pay more for a service, but this is about making sure nail techs aren't making less than minimum wage.
"I don't think people would be happy getting their nails done, knowing the technician wasn't making minimum wage. That's what this is about."
TAKING A RISK
Despite most technicians only increasing their prices by a couple of pounds per manicure, many are concerned about pricing themselves out of the market due to increasingly stiff competition.
Nail salons were the UK’s fourth fastest-growing retail category in 2023, with a year-on-year increase of 302 units, according to the Local Data Company.
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Since 2017 the total number of salons has grown a whopping 25pc, and with experts projecting further growth of around 12pc between now and 2028, salon owners said they’re under more pressure than ever to keep their prices competitive.
Ms Rhodes said: “I was incredibly nervous about increasing my prices. It’s something that is quite worrying for self-employed beauticians.
“There’s always the risk that clients will leave to find cheaper alternatives.”
Fakenham-based Stacey Smalley launched her nail business High Tides in 2020, shortly after the pandemic hit.
She said the negative reaction to nail technicians increasing their prices has been alarming.
She said: “Some of the comments have been unbelievable - people expecting the cost of a manicure to be the same that it was 10 years ago.
“But the standard that people expect for that price is nothing like it was back then, because social media has increased the popularity of perfect, intricate nail art.
“We’ve been getting a lot of flack as an industry and there seems to be this narrative that this is about us trying to put extra money in our pockets.
“But people forget that we’re self-employed so we don’t get holiday pay, sick pay - god forbid you need a hip replacement and can’t work for several months.
“Unfortunately it seems the beauty industry has still got a reputation for being made up of ‘silly girls’ who didn’t do very well at school.
“It’s interesting that nobody has criticised the car industry for putting prices up.”
IS THIS PRICE FIXING?
Price fixing is an act prohibited by law and involves businesses working together rather than competing.
According to the government, you are breaking the law if you agree with one or more other businesses to:
• Charge the same prices to your customers
• Offer discounts or increase your prices at the same time
Ms Guy has dismissed suggestions raised on social media that the NTO's campaign amounts to price fixing.
"There's no set price that everybody will be amending their prices to," she told BBC 5 Live.
The Competition and Markets Authority (CMA) says it was in contact with Ms Guy, but stopped short of saying whether the campaign broke the law.
It said this conclusion could only be made after a full investigation, which it has not launched.
In an open letter to nail technicians, however, it reminded business owners “of their obligations to comply with competition law".
It added: “In particular, we want to underline that businesses must set their prices independently and that competitors should not discuss or coordinate among themselves the timing or amount of any price increases.”
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