SalonEVO Magazine

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5 Ways to Avoid Overpaying on Salon Energy Costs

Energy bills make up 40% of the average hair and beauty salon’s total business costs, according to a new survey of decision makers by Uswitch for Business, the business energy comparison and szwitching service.

Energy bills are the top concern for salons and spas, more so than rent costs, product inflation and attracting new customers. 24% of salon business owners say they are struggling to pay the energy costs associated with running their businesses.

As a result, four in 10 of those salon decision makers (40%) feel anxious about their business, while one in five (20%) have had to ask family and friends to help cover business costs.

As the cost of living continues to rise, salons have noticed that customers are selecting cheaper treatments (40%), leaving longer intervals between appointments (35%), giving lower tips (29%) and coming in for hair treatments with wet hair to save costs (18%). 

Jack Arthur, energy expert at Uswitch for Business, said: “The hair and beauty industry is an essential part of the UK economy, providing jobs and services to millions. However, reduced footfall and sky-high energy costs puts salon and spa owners in a really difficult position. 

Business decision makers should ensure 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.

Jack gave some Top Tips on how to avoid overpaying on business energy costs:

  1. Check all 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. If you’re 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.