Charging correctly for your salon services will either make you a success or cause your business to fail. You have to be sure your fees are not discounted or undercharged and at the same time not over-priced.
This balance is imperative for a successful salon. Keep your price list simple while at the same time your services profitable. These tips will help you to know how to price your salon services.
Make your price list simple. Some price lists become too complicated when all types of cuts are listed; dry, wet, rough dry or whatever other types you offer. Make it easy for you and your team working with you by keeping it simple. When you order a hamburger at a fast food chain and ask for it without ketchup, you don't pay any less so use this concept when pricing haircuts.
Customers return and pay for the expertise you display in your work. When your price list becomes lengthy, it becomes easy for your team members to undercharge. The various prices are a common mistake in undercharging for services.
Unless you are running a promotion or offering discounts for a special event, you don't want to undercharge for your services. Value what you do and ensure your team understands how discounts affect the overall success of the business. Using software to record appointments and use for point of sale will help you and your team to collect what your customers should pay correctly.
Discounts are good marketing tactics for special events or to get more attention for your services. Don't overuse them and offer them as a general practice. Discounts create work for you that pays little to nothing for your expertise. If you are uncomfortable removing them entirely from your prices, offer them on certain days such as your slower business days. This offer will ensure you receive full pay for your work on high demand days.
There isn't a magic formula for determining the perfect price for your services. You will most likely end up changing them from time to time as your experience increases, and you add or delete services. One place to start is getting to know your competition. Find out what other salons are charging compared to the services they are offering. Look at whether the cheaper priced salons are performing poor quality work or do the expensive ones have a lot of years of experience?
When you have done your homework and compiled a list of price ranges in other salons, you will have to decide where your prices should fall compared to your skill level. Take into account with your decision your years of experience and reputation. If you choose to put your services at a higher rate, ensure your clients understand the added value you offer them.
Do not let clients offer you less than what your price list states. There are always customers who feel they deserve a discount or lower price and you have to be prepared to say, 'No' to these requests. It is better to lose out on the ultra-cheap clients rather than starting a trend and giving away your services for less than your worth.