Being an independent beauty professional in your own salon studio is an exciting and gratifying venture. Make sure your pricing strategy is on point to maximize your earning potential!
As a salon suite owner, you can enjoy the perks of schedule flexibility and creative freedom. But one of the most rewarding benefits as an independent beauty professional is financial freedom. To give your revenue a boost, it is vital that you are charging your clients correctly.
1. Count the Costs
The first step in setting your prices is to consider the going rates in the area, your expenses, your time and your level of expertise. Use local rates as a gauge for setting prices, and price based on your experience. It is also critical to consider your expenses to ensure that you are profitable. Remember, products, tools and overhead costs money. Lastly, your time is precious. It’s helpful to know the amount of time it takes you to perform each of your services.
2. Create a Time-Based Pricing Structure
Factor your time into your pricing. Make sure you know what even one minute of time costs you. Salon software provider, Timely, suggests calculating your ‘per minute’ rate to know what you’re charging for each service. Take each service and divide it by the amount of time it takes (example: $65 Cut/45 mins – 65 divided by 45 = 1.44). Stylist Gina Bianca uses a time-based pricing structure. She says time-based standards creates consistency and an excellent guest experience.
3. Set Clear Expectations
Provide thorough consultations with your clients. Pricing your services based off of your time and knowing how long your services take helps you create clear expectations for your clients. After consulting with your client and educating them on the process, you’ll know exactly how much to charge them and how long it will take.
4. Don’t Undercharge
Set your rates and stick with them. Do not undercharge for your service offerings. Using an appointment scheduling app or software can help with maintaining your prices. Value you what you do, and your clientele will follow suit.
“Get the confidence of the public, and you will have no difficulty getting their patronage… Remember always that the recollection of quality remains long after the price is forgotten” – H. George Selfridge
5. Know When to Increase Your Prices
Beauty Expert Liz McKeon says to keep your prices up with the inflating costs around you. As you’re in business the cost of business increases (i.e., products, overhead, etc.). Maintaining your prices in the midst of inflating costs will negatively impact your bottom. McKeon recommends increasing your rates at least once a year and give your clients sufficient notice when doing so. Don’t feel bad when it’s time to raise your prices. Stylist Derek Cash says “Clients will understand. They’ll want to help you succeed. I had a friend who I was honoring my old pricing for, and I started to resent them. It wasn’t their fault. It was mine.”
6. Cost is Not the Only Deciding Factor for Clients
Sometimes beauty professionals may feel like they need to charge less to attract clients. McKeon shares that many clients are willing to a premium when they know they will receive things such as quality service, timely service, excellent customer service in return.
7. Know When to Discount Products or Services
Offering discounts to clients should be strategic. McKeon recommends using discounts for the following:
- To encourage repeat sales
- Bundling sales
- During slow times to stimulate demand
- Clear out outdated stock
Discounts should be planned ahead of time around your pricing strategy.