The hair and beauty industry is experiencing a significant shift as it re-evaluates traditional pricing models that have long been based on gender. This change is driven by increasing consumer demand for fairness and transparency, as well as the need to create more inclusive and affirming spaces for all clients.
Survey Insights: Current Practices and Future Trends
According to a recent survey conducted by the NHBF, the majority of respondents (57%) indicated that their current haircut prices are gender-specific, while 42% have adopted a gender-neutral pricing model. This is a substantial shift from the NHBF’s 2016 survey when 84% of businesses still used gendered pricing.
For those maintaining gender-specific prices, the primary reasons varied. A significant portion (38%) cited differences in the time required for haircuts as the main factor, while 29% mentioned tradition and customer expectations, and 25% attributed their pricing structure to differences in haircut complexity. Market demand and competition were the least influential factors, noted by only 8% of respondents.
When asked about the possibility of transitioning to gender-neutral pricing, the responses were quite definitive. A substantial majority (67%) are not considering such a switch. However, 25% are open to the idea but have no set timeline for implementation, and only 8% are planning to switch within the next year.
The survey also highlighted the biggest challenges in implementing gender-neutral pricing. Half of the respondents (50%) identified customer resistance or confusion as the primary obstacle. Adjusting current pricing structures was noted by 27% and 18% were concerned about the potential loss of revenue. Training staff to explain the new pricing was considered a challenge by 5%.
The Case for Gender-Neutral Pricing
The traditional justification for gender-based pricing has been that women’s haircuts are more complex and time-consuming. However, this rationale is increasingly seen as outdated and potentially discriminatory. Many women prefer shorter hairstyles, so critics argue that pricing should reflect the time, products, and skill required for each service rather than the client's gender.
As attitudes shift, hair and beauty businesses are encouraged to adopt more equitable pricing strategies. The NHBF has been a strong advocate for this change, urging business owners to review their pricing models.
Caroline Larissey, CEO of NHBF, emphasises: "The hair and beauty sector is at a pivotal point regarding gender-based pricing. Our latest survey detailed that while 57% of businesses still used gendered pricing, there's growing awareness of the need for change. We're seeing a major shift towards more equitable pricing models, particularly among smaller, independent businesses. This evolution reflects broader societal changes in gender norms and client expectations. While there are economic factors to consider, including service complexity and time requirements, we must also address concerns about fairness and inclusivity. The NHBF encourages all hair and beauty businesses to review their pricing strategies, focusing on factors like time, skill, and products used rather than gender. This approach not only aligns with equality principles but can also be a positive marketing tool in our changing consumer landscape."
Benefits and challenges for gender-neutral pricing
Adopting gender-neutral pricing offers several advantages, such as creating a more welcoming environment for LGBTQ+ clients, promoting inclusivity, and eliminating gender discrimination by basing prices on service specifics rather than gender identity. This shift allows for a focus on the actual work involved, reflecting the time, skill, and products used, thereby providing greater transparency.
Implementing gender-neutral pricing is not without its challenges. One significant hurdle is adapting booking systems, as existing software may be designed around binary gender categories. Educating clients about the rationale behind the new pricing structure is also essential to ensure understanding and acceptance. Resistance may arise from some traditionalists who oppose the change, and there is also the potential for revenue impact as adjusting prices could affect overall income.
Looking Ahead: A Balanced Approach
Although there has been a shift towards gender-neutral pricing, the survey results indicate a cautious approach within the industry towards gender-neutral pricing, with significant concern about customer acceptance and structural adjustments.
As consumer awareness grows and demand for fairness increases, the pressure on businesses to adopt equitable pricing is likely to intensify. The balance between economic efficiency and gender equality will be crucial. Time-based or complexity-based pricing models could offer a middle ground, addressing both economic and fairness concerns.