Maritimers say the cost of services is on the rise

Many Maritimers say they are seeing inflation in the cost of services.

The cost of living and increase in product prices is one thing, but what about the cost of services?

“Stats Canada in March released the inflation rate for services which was up 3.1 percent and that’s an indicator that it’s above product inflation,” says retail analyst Bruce Winder.

“It’s not just anecdotal here, we are starting to see real numbers that show that services are growing faster from a price perspective than products are.”

For some people, like Sabilla Tuyisenge, the price increases are the reason she moved away from traditional salons and spas and learned how to do the services herself.

“I do my lashes, I do my hair, because it’s so expensive, I can’t afford it, I can’t afford to go to the salon, I do it myself to save more money,” she says.

Tuyisenge is not alone. Experts say one reason for an increase in consumer prices is an increase in product prices.

“A lot of brands are increasing their costs so those get passed on to the salon and spa owners, as well it could be your transportation or delivery services are increasing, this all comes back to the salons and spas and then gets passed on to the consumers if the salon can’t absorb the cost,” says Dana Sharkey, the executive director of the Cosmetology Association of Nova Scotia.

“If the product prices, the price they pay, are going up they may have to increase services to offset that margin, that product margin that they lose on the product side,” adds Winder.

Some consumers are forced to choose between the services they want more.

“Consumers are starting to be more mindful themselves of where they are spending their money, some may give up the luxury of their nails rather than their hair, we have seen that happen,” says Sharkey.

It’s not just one cosmetic service, it’s all of them.

“Lash technicians, nail technicians, body hair removal specialists, they are all being affected the same way because they all carry products and they all need tools and equipment,” says Sharkey.

But it’s not just cosmetology -- price increases are across the board with all services.

“One hypothesis might be that some service providers are seeing the unit volume of their services decline, so they are trying to make up their profit on remaining consumers,” says Winder.

Another reason people are noticing prices increases for certain services could be the demand for them.

“It could be because volume is dropping off. People might be changing their own tires themselves more. They need to increase the price of the service to break even. With less customers coming to them they have to charge more per existing customer,” says Winder.

For home renovation services, some say their product prices haven’t dropped since the pandemic.

“Inflationary pressures on new homes, garages on any building materials has led to a lot of delays in decision making,” says Mike Jones, JonesCo Builders Inc. owner.

Jones says a lot of people are focused on what’s happening globally.

“Or even with our election here in Canada or what’s going on with the States and tariffs. People are hesitant to make big decisions about big purchases and some people are waiting for the dust to settle before they make a big purchase,” Jones says.

He adds his company tries not to pass product costs onto their customers.

“We try and find a level or predictability of those products and pricing that we can build into the final price we give our clients for garages and new homes,” says Jones.

Winder adds once prices of services go up they tend not to drop.

“Products, prices and services, they don’t go back, they don’t reduce, so it’s usually a one-way street, so if you see inflation on products, usually they don’t lower the price later.”

Sharkey says she is seeing some cosmetology specialists open their own stores, or work from home. For them it’s money in their own pockets, but also in some cases cheaper for the consumer, and in turn it hurts spas and salons.

“It is becoming much more common, which is making it a lot harder on the industry for our salons and spas to find workers because many people are just going home and working out of their home,” says Sharkey.

For some Maritimers, like Cecil Boucher who lives in Halifax, he has to think about where he needs to put his money before spending.

“You have to wear things right down to nothing, because the cost of mechanics just to run your vehicle, there’s your extra money you were trying to save for a bill,” he says.

Winder adds the higher prices get, consumers will look for ways to save and some may even learn the trades themselves.

“At some point when the economy gets bad, people will baulk at the price of these services and you’ll either see people opening service businesses that are lower priced to undercut these folks, or people will start doing it themselves or both.”