MANKATO — Brooke Wiltscheck’s “Tell Me a Hairy Tale” salon suite is adorned with bright, festive colors — hot pinks, lime greens and twinkling lights. And her suite is one of dozens in a normally busy Mankato strip mall full of dozens that provide everything from massages, makeup and manicures, to tanning, and waxes.
Wiltscheck, 29, has been a hair stylist since 2019, and she said this plaza is usually buzzing and bustling, especially this time of year, with clients who’d booked weeks or months ahead time so they’d look their best for holiday gatherings.
“Christmas appointments were slim pickings because people were booking out so far in advance,” Wiltscheck said. “I had too many clients.”
But this year, with inflation still up, wages flattening and Minnesota’s job market sluggish, business has slowed down and Wiltscheck said she’s not alone.
“Every single day, when I log on to Facebook, somebody is posting in one of the groups asking, ’Anyone else super slow or, ‘Oh, is anyone else considering a second job?’” Wiltscheck said. “It’s super sad to me to see fellow colleagues struggling. In this industry, people are picking up second jobs. People are leaving the industry.”
Wiltscheck says bookings are still coming in and her chair is rarely empty, but it’s not nearly as busy as it was after the COVID-19 pandemic. She said there’s been a shift in when clients book.
“Business for me has been steady, but it looks a little different than it has in past years,” Wiltscheck said. “I’m still working with a full schedule most weeks, but clients aren’t booking as far in advance as they used to. Historically, this time of year is booked out well ahead of time, so the shorter booking window definitely stands out.”
Wiltscheck is also noticing clients booking less often and waiting longer between hair cuts and color treatments, and going with lower-maintenance styles that won’t need to be touched up as often.
Sitting in Wiltscheck’s chair, getting her hair shampooed before a trim, is Dilan Callahan, 26, of Mankato. She says she’s been feeling the pocketbook pressures of the rising costs of living, especially groceries. So she’s been treating herself to these hair appointments less often. She calls herself “frugal,’ and she knows many others who are watching what they spend these days, too.
“Everyone that I’m around, family, friends, have all kind of been in panic mode about it,” Callahan said. “They’re not upfront or anything like that, but you can just tell when you’re around people, the way that they typically spend their money or the extra things that they do for themselves are kind of put to the sideline.”
Consumer confidence
Consumer confidence right now is quite low compared to last December, said Akshay Rao, who studies consumer behavior at the University of Minnesota, where he is the General Mills Chair in Marketing at the Carlson School of Management.
“Consumer confidence is a reflection of not just their well-being, their financial well-being, but their perception of uncertainty in their world,” Rao said “And if (consumers) see a lot of volatility in that part of their world, that will have an impact on their spending.”
“Sales at hair salons, the crowds, hair salons and the waiting time to get an appointment with your favorite hairdresser, those indicators reflect a reduction in demand,” Rao said. “And that tells me that if you are feeling uncertain about your state of wealth will have an impact on your state of behavior.”
In other words, many consumers right now are less willing to splurge on services such as haircuts, massages, manicures, pedicures, waxing, tanning and cosmetic tattoos.
But the affordability crisis isn’t affecting everyone equally. Economists have been saying recently that we are in a K-shaped economy right now, in which wealthy Minnesotans are seeing their incomes rise, while lower-income households struggle with higher prices for essentials while their wages stagnate.
Stephen Adams is the executive director of the Beauty Certified Education Association, an organization that represents professionals in the hair, skin and nails industry in Minnesota. He points out that not all salons and stylists are feeling the economic pinch.
Adjusting, not disappearing
To make her services more affordable for clients, Wiltscheck introduced a “recession menu” offering flexible pricing options like a basic haircut without shampooing and styling, with the additional services available for an extra fee.
“I think that being able to build your own service really lets the client feel like they’re getting value out of what they’re paying for,” she said. “I think people right now are really kind of just clutching every last dime that they have. (They are) just trying to be really frugal and savvy with their money, which I don’t blame them.”
Wiltscheck said in recent weeks, more clients have been opting for building out their service packages. Wiltscheck also said she doesn’t take tips anymore either. And she now offers a financing option so clients can spread out the cost of services over weeks or months.
“Hair isn’t considered a necessity, but everyone should still be able to stay on top of their maintenance and at least feel good,” she said. “So, giving them a little bit more budget friendly of an option has really helped. I think clients are trying to make smart choices rather than cutting services entirely. They’re adjusting, not disappearing.”