Don’t Panic! Why 25% Tariffs Don’t Mean a 25% Price Increase for Your Salon.

Nina Tulio

If you’ve heard about the 25% tariffs on beauty industry imports, you might be worried about skyrocketing costs and needing to raise your prices by 25% to stay profitable. Good news—you don’t! While tariffs may impact certain products, there are ways to minimize the effect on your business without drastic price increases.

Why 25% Tariffs Don’t = A 25% Price Increase

• A 25% tariff applies to the cost of imported goods, NOT your entire service structure. Let’s break it down:

• If a color tube costs $10, a 25% tariff adds $2.50. EX: If you spend $1000 a month on back bar supplies 25% is = to $250 for the MONTH which = $62.50 a week——not a massive jump. I teach to allocate 15% or less for back bar product cost for independent artists. And 6% or less for backbar product cost for commission salon owners monthly. THIS is the area you want to pay attention to and how much it will increase your monthly % due to the tariffs.

• Since backbar and retail products are only a fraction of your expenses, your total cost increase will be much smaller than 25%.

• Payroll, rent, and utilities make up the bulk of your costs, and they aren’t affected by tariffs.

  **If you are a part of my courses you have access to my budget and pricing calculators. You can run this simple formula to see how this will impact your profit and how much of an increase you will NEED to stay profitable. This will help you make decisions based on facts NOT fear.
  Click here for commission owners ——- Click here for independents

How to Prepare Your Salon Without Raising Prices Drastically

• Assess the Real Impact – Review how much of your product inventory is affected. Some brands may not be impacted at all if they manufacture in non-tariffed countries.

• Adjust Smart, Not Scared – Instead of a 25% price hike across the board, consider a small, strategic increase on specific services if necessary.

• Reduce Waste & Maximize Efficiency – Train your team to use precise product amounts and minimize waste. Small changes in color mixing and backbar usage can offset higher costs. I suggest using VISH for this very reason.

• Stay Patient with your BRANDS– Some brands may not be affected by tariffs or may offer bulk pricing discounts to help salons absorb costs. Before making drastic product switches, sit tight and communicate with your brand reps—many companies are actively working on solutions to minimize price increases

• Upsell, Add Value & Focus on Volume – Instead of raising prices drastically, look at ways to increase sales volume by filling gaps in your books, attracting new clients, and maximizing each appointment. Encourage pre-booking, and added value services like gloss treatments or deep conditioning treatments to boost revenue without raising prices. And let’s not forget about those express treatments.

  Bottom Line: The tariff increase doesn’t have to derail your business. Stay informed, make small but smart adjustments, and focus on value over panic. This is a great tome to dive deeper into the finances within your business and make adjustments. Your salon can stay profitable and competitive without drastic price increases.

Looking to price your service with confidence? Check out Make That Money course for suite owners/renters. And in my Synergy course for commission owners.

Psst! MORE Free resources are a click away!

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