Before we start, we just want to say this out loud: We get it. Entering a new salon can be a fantastic, exciting, nerve-wracking, incredible experience.
You have a fresh environment, maybe some lovely, first-time clients, and a whole new world in front of you –
But, take all that on with figuring out how-on-earth you’re supposed to price your salon services can be a big, tangled mess of what-the-heck-am-I-doing?
Fear not, lovely stylists, nail technicians, skincare professionals, colorists, and hair artists. We’re here to untangle the knot that is pricing (forgive us for the hair puns – we just can’t help ourselves).
We understand how hard it can be to set up a pricing system that’s both fair to you and your client that also covers your costs.
Our best advice?
Don’t be overwhelmed.
Sit back in our chair, relax, and pretend we’re giving you the best mental scalp massage in the world, because we’re about to ease your mind, set you straight, and give you all the information you’ll need to price your services accordingly.
Consider the Cold Hard, Facts.
When it comes to setting up pricing, you want to be fair, but you also have to understand a few specific points: your time is valuable, you have costs to cover, and you’re a talented professional!
You’ll need to set pricing that reflects all those facets. Growing a loyal customer base is important, and your prices are going to play a significant role in that – you’ll need to learn to find the balance between fair prices for your fabulous services that also cover all your costs.
A little stressed? Here are a few tips:
Keep Your Prices Realistic, But Cover Your Costs.
The best way to understand realistic prices is look around at your competition – we promise this isn’t shady. You need to understand your market, what’s realistic, and get a good idea of what isn’t so that you can price accordingly.
We don’t mean that you should copy your competition’s price structure, you need to consider your skills, your time, and your awesome services, but this will be an effective way to get an idea of your market’s price fluctuations.
You must make sure that you’re covering your costs. If your competitor’s prices don’t come close to covering your costs, and if your services are far superior, then you’ll need to make sure you’re setting prices that reflect that.
Go through all your expenses,
Don’t miss a single detail. Setting your prices too low will not make enough revenue to cover the cost of selling your service, but setting a price too high, you might not be able to cover your operating costs.
Crunch the numbers and get a better understating of your market, your services, your expenses, and your customer base.
Great Service, Not the Lowest Price.
This is a huge key factor when it comes to setting prices.
You might get caught up in the mindset that you need to beat out your competition by having the lowest prices possible.
We’ve got three words for you: cut that out.
Sure, low prices are great, and your clients will appreciate that, but this is their hair/skin/nails you’re talking about. Often, your customers are looking for high-quality, speedy deliver, and excellent personality, and you know what?
Most people will pay premium for that. Take a good, hard look at the services you offer. Evaluate your customer service strategies.
Do you deserve to charge premium for your skills? If you can deliver high-end results and your customers are delighted to pay a little extra for that experience, charge for it!
It’s important to understand your realistic skills and the quality of service you’re offering your clientele.
Your Time is Valuable, So Treat It That Way.
We cannot stress this enough – include your time in your pricing structure.
As a creative artist working with people to deliver the product they want, isn’t your time the most valuable aspect you’re offering?
Of course, it is!
Like we said. Your time is valuable, so don’t treat it any differently. Include this in your price calculations.
Discounts are Great...Use Them Cautiously.
A great way to build up loyalty and new clientele is by offering them fun discounts, day-of-deals, and even participating in social media contests where those who rep your salon/spa to get a nice discount on their service.
That being said, make sure you don’t give your clients the wrong idea about your business – you don’t hand out discounts willy-nilly, instead, you carefully strategize and plan for your pricing discounts.
For example, use discounts to clear out dated stock, services that don’t take you a long time to complete, or to stimulate demand for a new service you’re offering.
Just make sure it doesn’t come off to your clients that you’re reducing your prices entirely.