I am writing this as a barber on the front line of an industry in crisis. I am deeply concerned about the significant challenges our industry is currently facing. While our passion and commitment to barbering remain unwavering, we must acknowledge the issues that threaten the future of our craft.
Our industry is experiencing unprecedented pressures, not due to a lack of skill, but because of an evolving economic landscape that is increasingly difficult to navigate.
I believe we are facing a crisis because the maths isn’t adding up anymore. Whilst Government officials and industry bodies share reports about “modest growth” and “sector resilience” those of us running shops and paying bills tell a different story. And this isn’t just something we’re seeing in the hair and barbering industry. Other sectors have observed similar challenges:
- Retail: In 2023, approximately 5,000 chain stores closed across the UK, highlighting the vulnerabilities within the retail landscape.
- Pubs: The British Beer and Pub Association reported that around six pubs closed each week in 2024, resulting in approximately 4,500 job losses.
These trends serve as cautionary tales for our own industry.
Consider a thriving shop with an annual turnover of £200,000. The allocation of these funds typically includes:
- Staffing: Four barbers earning £30,000 each total £120,000
- Overheads: Rent, utilities, and related expenses amount to £40,000
- Supplies and Other Costs: Products, insurance, and marketing require £10,000
- VAT Obligations: At 20%, VAT accounts for £40,000.
That’s already a £10,000 deficit, even for a busy establishment – now imagine ten or more barbershops on the same high street all trying to do the same. Scaling up does not necessarily ease these challenges, as larger operations face proportionally higher expenses.
In communities where wages are falling, and foot traffic is dropping (clients are stretching cuts from four weeks to eight) how are businesses expected to survive?
What’s The Plan?
The current VAT structure presents challenges for industries like ours. While Governments express concerns about setting precedents and budgetary constraints, the potential loss of small businesses could have broader economic implications.
Our industry bodies are actively engaged in advocacy; organising campaigns, and providing resources to help businesses adapt. Their efforts are commendable, yet the structural economic challenges persist so we need to encourage everyone across the industry to mobilise and engage with these campaigns in order to gain traction.
My fear is if current trends continue, we may see:
- The closure of mid-sized salons and barbershops, leading to a rise in self-employment and mobile services.
- The emergence of large uber-style technology platforms dominating the market, potentially imposing substantial commissions on professionals.
- High-end luxury options on one end and low-cost, high-speed services on the other.
What Can We Do?
To navigate these challenges, we can consider:
- Cost Management: Negotiate rents, share spaces and remove inefficiencies.
- Specialise: Focus on niche services, be the best at something from skin fades and colour corrections to curly cuts and extensions.
- Build Client Loyalty: Own your audience. Build relationships through emails, WhatsApp groups and local partnerships.
- Subscription Services: Offer monthly memberships with guaranteed slots, discounts and exclusive perks. Predictable income keeps doors open.
- Product Sales and Education: Diversify your income through retail and educational services. Offer workshops and turn your knowledge into revenue.
- Collaborate: Partner with other local businesses on cross promotions and community events.
- Embrace Technology: Take online bookings, use automated reminders and run loyalty schemes. But build your digital presence around you – not platforms.
Next Steps
If we stand together, we will see meaningful change:
1. Advocate for VAT Reform
2. Support industry-wide lobbying
3. Share knowledge
4. Campaign for fair commercial practices such as rent caps and fair business rates on the high street
5. Maintain service standards and uphold pricing that reflects the value of our expertise
The challenges we face are significant, but with a collective effort, we can adapt and survive. We deserve better. And we’re the only ones who can build it.
