Among Friends

[ScrapHappy]

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@deeva wrote:

DH received a text this morning from his barber. It said that when the shop reopens, the price of a haircut with increase from $15 to $25.  The increase is to cover the cost of disinfectants that they have to buy to keep everyone safe.

I had never considered how many small business owners will have to raise prices.

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I think my hairdresser will raise her prices to cover the cost to keep people safe and to make up her losses.  I pay $130 for a cut, color and blow dry and I know I'm going to cringe when I go back.

[geezerette]

Our governor mentioned a business grant from the state (although I'm sure some, if not all, of it is funded by the Feds) for PPE for each employee and other things like disinfectant now needed for businesses to be able to open.  Up to $100,000 per business, $1,000 per employee.  That should help, provided they can actually find and purchase these things in quantity now and in the future.

However, due to the fact that many businesses won't be able to open to full capacity for some time, I still think that some won't be able to survive.  For instance, running a restaurant that's only allowed 1/3 of its usual customers as well as all the extra restrictions for at least several weeks at the most optimistic may prove the undoing of some.

[Mominohio]

Just the sheer lack of being able to fill the spaces in businesses, therefore reducing their profits will make prices go up for sure. 

I don't see how, say Olive Garden, can reduce their occupancy by up to two thirds (we don't know yet how much will be required, but I'm guessing it will be at least 50% less in most places), and remain open without raising prices. The same will go for all service type business, in my opinion. The rent, utilities, etc aren't going to be less, but the number of people served each day will be and the money has to come from somewhere. 

[Vivian]

Prices will have to go up. If not, hair salons, restaurants, and health clubs will not survive. Between the months of closure and the new-normal regulations to keep customers and workers protected, there must be price increases for there to be any chance of business survival. The problem is that many people can no longer afford even the old prices. With such high unemployment and with corona still affecting so many, it will be a long time before we see anything close to normal.

[Kachina624]

How about higher taxes?  Somebody has to pay for the government giveaway.

[geezerette]

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@Mominohio wrote:

Just the sheer lack of being able to fill the spaces in businesses, therefore reducing their profits will make prices go up for sure. 

I don't see how, say Olive Garden, can reduce their occupancy by up to two thirds (we don't know yet how much will be required, but I'm guessing it will be at least 50% less in most places), and remain open without raising prices. The same will go for all service type business, in my opinion. The rent, utilities, etc aren't going to be less, but the number of people served each day will be and the money has to come from somewhere. 

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@Mominohio 

Our state is starting with 1/3 occupancy for the first phase.  Then will up to 2/3 for phase two and finally full occupancy for the third and final phase.  

However, when the second two phases are implemented will depend solely on data.  So there is no definite timeline for restaurants to plan on.

[ALRATIBA]

I would expect that. 

Last year I switched from a pricey salon to one that charges just half of that not because of price / but location.  So, if she raises her prices I won't complain.

Since my hair has grown a lot from my pixie cut ... it's looking pretty good and I might not have to get it cut so often if I keep this style.  

[Nataliesgramma]

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@Nightowlz wrote:

That's too much for a haircut IMO. I would look for someone else. 

DH cuts his own hair using one of those flowbees. He also trims the ends of my hair.

$10 is too much of an increase. Sounds like he's trying to make up for the money he has lost while he was closed. I doubt it's costing him an extra $10 per haircut per person to cover disinfectant costs.

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I agree

[kitcat51]

No surprise...more work with less customers because of distancing. Prices will go up on everything.

[AuntG]

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@Mominohio wrote:

Just the sheer lack of being able to fill the spaces in businesses, therefore reducing their profits will make prices go up for sure. 

I don't see how, say Olive Garden, can reduce their occupancy by up to two thirds (we don't know yet how much will be required, but I'm guessing it will be at least 50% less in most places), and remain open without raising prices. The same will go for all service type business, in my opinion. The rent, utilities, etc aren't going to be less, but the number of people served each day will be and the money has to come from somewhere. 

===I wonder too @Mominohio . They may be taking reservations until midnight.

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