In Bajo town, a haircut now costs Nu 150, marking a jump from the earlier price of 100 ngultrum. Barbers in Bajo have been charging the revised Nu 150 for over six months. Since then, town residents have been complaining about the 50 per cent price increase. This concern has been escalated to the Competition and Consumers Affairs Authority. Bajo town is home to seven barber shops.
The barbers in Bajo say that due to the rising prices of commodities in the market, they have increased their prices.
The barbers were called to the Competition & Consumer Affairs Authority to explain the price hike.
According to them, the price is not fixed; they adjust it based on their customers’ affordability and convenience.
Nevertheless, many people deem Nu 150 as expensive for a haircut.
“The price was initially Nu 100, and when they abruptly raised it by Nu 50, it surged to Nu 150 instantly. Some people argue that a gradual increase of Nu 20 to 25 would have been more feasible rather than an immediate jump of Nu 50,” said Nari, a resident.
“I find the charge of Nu 150 ngultrum for a haircut a bit steep. In my case, I do not have much hair, and the haircut takes no more than 10 minutes,” said Wangchuk Dorji, a taxi driver.
“Prices across the market have soared significantly. Considering this trend, I understand the need for them to increase prices. Their livelihood depends on this business, covering rent and day-to-day expenses,” said Vijay Kumer Ram, another resident.
The barbers argue that the price increase was a unilateral decision made to cope with the increasing living expenses in the town.
“We do not have a fixed price; rather, we offer various price ranges. Our charges vary between Nu 100, 120, and 130, considering factors such as different head sizes, discomfort during the haircut, or the amount of hair to be cut. Consequently, we adjust our prices accordingly. Some customers even refuse to pay the base price of Nu 100,” said Deo Kumer Burathoki, a barber.
“Customers have been drastically decreased from 2022. For instance, armed force personnel are cutting in their own camp. Students are cutting in their own school and monks are cutting in their own Dratshang. So, we have slightly increased our price, as we are facing difficulty to pay our house rent and sustain our livelihood,” said Suraj Biswa, another barber.
According to the barbers, another reason for the price increase is the enhanced quality of service they offer.
“Previously, we used cloths to cover customers’ necks, but now we have upgraded to modern neck wrappers, which cost us Nu 800 per roll. Additionally, we have transitioned from using towels to employing blowers and brushes to clean hair, aiming to prevent the spread of diseases unlike before,” said Suraj Biswa, a barber.
Following complaints from the public, the Competition & Consumer Affairs Authority has informed the barbers to adjust their pricing.
They said that the collective decision to set a common price amounts to collusion, which is deemed an unfair trade practice.
The authority told BBS that prices can be adjusted individually based on service quality and market expenditures.
However, they said businesses cannot collude or collectively fix prices.
Changa Dorji, Wangdue Phodrang
Edited by Sherub Dorji
