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SEARCHA fascinating research review, Charging Green Fees, uncovers entrenched resistance to the idea of green fees, with pushback from service providers convinced clients would resist the additional charge. But the same project also dug into client attitudes, finding strong support, even among those who love a bargain.
Charging Green Fees, published this year by Sustain Beauty Co (SBCo), uncovered entrenched resistance to the idea, with pushback from service providers convinced clients would resist the additional charge. But the same project also dug into client attitudes, finding strong support, even among those who love a bargain.
Beauty is not alone. From fashion to finance, companies considering sustainability are torn between protecting profits and shielding guests from soaring prices. However, beauty does have a clean, uncomplicated way of recouping at least some of the expenses related to green initiatives.
When the salon waste specialists – the companies who deal with your color waste and hair clippings in sustainable ways – entered the industry, they introduced a simple solution: Add an optional one or two dollars to the ticket for sustainability initiatives rather than absorb the outlay into general operational costs. The Green Fee was born. But since then, arguments have raged about how fair this is to guests and where that cost should be put on the books. Even among those committed 100% to sustainability, there is debate about whether it should be a transparent additional charge or subsumed into the overall cost of operations.
A fascinating research review, Charging Green Fees, published this year by Sustain Beauty Co (SBCo), uncovered entrenched resistance to the idea, with pushback from service providers convinced clients would resist the additional charge. But the same project also dug into client attitudes, finding strong support, even among those who love a bargain.
“There is definitely a mismatch in the perceptions of those delivering the service and those paying for it,” says Valorie Tate, of SBCo. “Understandably, presenting guests with an additional charge, even if it’s only a couple of dollars, can make stylists feel uncomfortable. Even among providers who did charge a fee, one in three felt ‘bad about it’.”
Valorie Tate, founder of Sustain Beauty Co.
Most respondents, while recognizing the role of sustainability in protecting the planet and giving a salon standout from competitors, did not charge a separate fee. But they were not completely hostile to the idea: 28% were positive, 40% neutral and only 33% negative and reluctant to introduce it.
Concern centered on three points:
Implementation: Is it possible to show clients that every cent of the Green Fee is isolated and spent only on green initiatives? 80% wanted to be able to easily prove this to clients to ensure they were not seen as “nickel and diming” or worse, profiting from sustainability.
Economics: Many voiced worries about adding the fee at a time of rising costs and inflation and the risk of pushback from clients, who they felt would be offended at being asked to cover what could be considered a business expense.
Transparency:Ultimately, the biggest debate raged around whether the fee should be absorbed into pricing rather than an extra charge.
The research overwhelmingly pointed towards transparency, revealing clients were much more into the idea than the service providers. But Tate does recognize the reluctance of those passing on the charge.
“Just because clients were positive about the idea, doesn’t mean it’s a universal acceptance. Give your clients an opt-out to make your team feel more comfortable about any potential push-back,” she says. “We found that salon guests were actually willing to pay more than what the average salon was charging and felt positive knowing they were contributing to a cause they personally aligned with.”
But, she adds, it is crucial to get your team 100% on board before you start, so they’ve had time to absorb and understand the reasons a Green Fee is being introduced and can articulate them to their clients. Reinforce this with visual cues throughout the salon journey, such as placing recycling bins in client areas and using signage to inform guests.
Beauty has a simple solution to funding sustainability that not only helps attract more clients, it also gives those clients an opportunity to feel they are part of your efforts to protect the planet, and they like that.
About SBCo: Sustain Beauty Co was born with the mission to help identify authentic, credible and environmentally responsible brands that put stylists at the forefront of their purpose. All Sustain Beauty Co products must: 1) Reduce the footprint of consumables in our industry. 2) Empower artists to create beauty responsibly.3) Protect the stylist and the environment equally. 4) Come from ethical sources and responsible manufacturing facilities.
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