11 Genius Salon Pricing Tips
11 Genius Salon Pricing Tips You Wish You Knew Sooner
Salon pricing is one of those things that is difficult to truly be at peace with because you’re always questioning things like: Is it time for a price increase? How much should I raise them by? Would it make more sense financially to switch to booth rental? Is education really worth the cost? Does this train of thought sound familiar? Take a deep breath and then keep reading because below, we’re sharing 11 genius salon pricing tips from members of the BTC community that cover it all!
1. Be Transparent With Pricing On Social Media
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Takeaway: “The thoughts were running through my head on how I should be more transparent on social. Thinking, I should break down my services more, break down my pricing somehow, break down the work and maintenance more,” shares @seanmichaelhair in the caption. “I wanted the transparency to shine through just like it does during a consultation with me. It wasn’t until I was cleaning my car hours later listening to @brittseva’s podcast with @iamginabianca. She started talking about her price breakdowns and it all clicked: Break down your services and pricing so that a 5-year-old could understand.”
2. Don’t Give Up If Your Starting Income Isn’t What You Expected
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Takeaway: “So if you are just starting out in this industry and are struggling financially, emotionally, physically (getting used to standing all day is brutal) and are wondering if all this hard work is worth it and if it will pay off, know that it IS and it WILL,” shares @the.blonde.chronicles in the caption. “The beauty world can get you down, leave you feeling empty and defeated and can, at times, leave you broke. KEEP GOING, friends! This industry can also offer you a ton of loyal, caring, kind clients. It can bring you co-workers who become best friends and lift you up. It can give back to you in so many ways.”
3. A Price Increase Is A Raise You EARNED
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Takeaway: “In the last 10 years, the cost of living has risen by 1.5 percent average,” shares @thebalaymama in the caption. “One gallon of milk has gone from $3.05 to $3.27. One gallon of gas has gone from $1.89 to $3.51. A home that was $100,000 is now $121,436 (That’s a rise of 21.44 percent). The average income per household in 2009—$50,221. In 2019? $60,336. I wanted to point out all of the above statistics to say this: Being a hairstylist is my JOB. It’s how I buy milk, gas, a home and make the annual income just like most of you (Reason #1 for price increases).”
4. Pricing & Extensions
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Takeaway: “Now, on a lot of my recent posts I talk about charging for your time,” BTC Team Member @iamginabianca shared in the caption. “Tape-ins are a little bit different because of the fact that they are extremely fast. Many people don’t charge properly for the LUXURY of an express service, not to mention the amount of training that goes into actually being good at extensions and also the fact that THEY ARE LITERALLY LIFE-CHANGING.”
5. What It Costs To Be An Independent Suite Owner
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Takeaway: “It costs money to run your own business,” shares BTC Team Member @kristen.lumiere in the caption. “I have a few job titles: 1. Hairstylist 2. Receptionist 3. Marketing Manager 4. Educator 5. Book Keeper 6. Website Designer 7. Graphic Designer 8. Suite Manager 9. Employer 10. Team Leader 11. Payroll Manager 12. Guest Experience Manager…the list goes on. I work 24 hours a week behind the chair and another 36 hours per week administratively on my business. Last year it cost me $167,130 to run my business behind the chair with myself plus one to two assistants.”
6. Don’t Underestimate The Value Of An Add-On Service
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Takeaway: “ONE GLOSS A DAY! Don’t ever underestimate the VALUE of an add-on service,” advises @bangbangbalayage in the caption. “KNOW YOUR VALUE and don’t give anything away for free! It’s also important that clients understand the cost of color and appreciate the extra time it takes for us to give them that treatment. Once we start just adding extras in for them that they don’t understand the value of, we start to make ourselves feel under-appreciated in the long run because we start to do things to be nice or because we feel bad that it costs so much. Does your doctor or dentist or waitress feel bad to charge for every service?! NO, they don’t! We are no less important and won’t be seen as any more kind, so know your WORTH and charge accordingly!”
7. Products & Services Are A Luxury, Not A Necessity
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Takeaway: “Here’s a little news flash: Most of the services we offer are legit luxuries,” notes Gina in the caption. “Half the population on this earth will never have access to the types of services we offer. They are a luxury and that isn’t free. You don’t walk into a Porsche dealership if you can’t afford one. You go somewhere where you can afford the products and services. Nobody is entitled to free. That’s not how the world works. Nobody NEEDS a 10-hour color correction for $1000. There’s always 1N. The point I’m trying to make is that no, salon pricing isn’t ridiculous—it’s real.”
8. Clients: Can You Sacrifice Your Daily Starbucks Latte?
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Takeaway (save this one to show clients!): “A $300 session broken down by 8 weeks = $5.35/day,” notes BTC Team Member @rochellegoldenhairstylist in the caption. “Is your session worth your daily Starbucks latte? Now trust me, I get it. We live on a budget. I am aware of what fits within it and what does not. But if I received all of the above, my fancy latte wouldn’t look so appealing.”
9. Invest In Your Education
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Takeaway: “This number is what I spent on my education last year. Online classes, in-person classes, coaching classes, cutting classes, balayage classes—the list goes on,” shares @colorsbyjaime in the caption. “I wanted to share this because I think sometimes people truly do not understand what some hairstylists put into their business to provide you with the very best experience we can give you. This number is just the cost of the classes. THIS DOES NOT include flights, hotels, rental cars, food, gas or Uber rides. This year already I’ve exceeded this number with just one class alone! I’m always learning, always growing and I’m always trying to give my clients the best experience and the best hair! Before you say to yourself, ‘WOW, that’s a lot of money for just a haircut or a balayage,’ think about this number. My prices reflect not only my time, but the value I’ve invested in myself.”
10. Reminder: You Are In Control Of Your Income
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Takeaway: “Are you unhappy with your paycheck? Good. Do something about it,” advises @jessdeehair in the caption. “Not fully booked? Market yourself. Not putting out the best possible product? Take a class. Take 10. Then, take 10 more. Not being properly compensated at your current salon? Find a new one. Don’t have enough content? Start doing some free hair. You’re not helpless. In fact, quite the opposite. YOU ARE IN CONTROL.”
11. How Do I Raise My Prices?
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Takeaway: “So how the heck do I calculate my price increase? It’s not just a $10 across the board type scenario. I’ll give you the formula,” shared Rochelle in the caption. “First, add up all of your expenses for one month—overhead, product cost, you name it. Write it down. Then, calculate your hours available for one month. Divide your expenses by your hours—that is how much you have to generate to simply make it. Doubling that is the standard (not always) approach to setting your prices, initially. If all of the above align, increase the doubled amount by 10 to 15 percent.”
Read This Before You Raise Your Prices!
