Know Your Worth:  How to Price Salon Services
Social Media Tips That Will Get Clients In Your Chair
Industry Tips to Create Your Client Base
Do I Have Enough Clients To Go Out On My Own?
Do I Need To Form An LLC To Rent A Suite? The Business of Beauty

Know Your Worth:
     How to Price Your Salon Services

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 Prices Simple

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.

Don't Undercharge

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.

Don't Overuse Discounts

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.

Know the Competition

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.

Be Willing To Say No

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.

Social Media Tips That Will Get Clients In Your Chair

If your salon is located along a busy street or in the popular part of the mall, you should be able to attract new clients reasonably easy. If your salon is found anywhere else, you need to focus on marketing tactics to attract clients. Social Media has exploded in the last few years, and businesses are turning more to these platforms as a means of getting the word out on their services.

You will be surprised at the number of clients you will be able to attract and the speed at which your business can grow when you use social media to get clients in your chair. These are some tips to help you get started.

Potential Impact of Social Media

Using social media to get clients in your chair has endless potential. Facebook will allow you to reach out to family and friends, however; increasing your marketing tactics to include Pinterest and Instagram, you have the ability to reach potential clients you have never met.

Never before have hairstylists been able to become so renowned just by posting a photo with a hashtag. Potential clients can look up your information on their smartphones, laptops, tablets or other internet-connected devices and find you. These platforms are also excellent methods to use in updating your services or new products.

What You Should Post

Using the social media platform gives you the freedom to offer a more personalized touch to your marketing strategy. If you post small items about your personal life will keep clients feeling they have a connection with you and think of you more as a person and not just a business. The critical factor with these postings is to keep them positive. Do not let politics or religion enter into your messages.

Facebook is not as business-friendly as when it started. You will have to post at least three to five times a day with shares and likes, so you continue to be seen on people's feeds. Scheduling about an hour of your time a week to enter posts will ensure you keep your messages out there and current on client’s feeds.
Offering promotions or limited-time offers through social media platforms will definitely get the attention of your followers. Use 'secret' words for them to look for as a way of saving money on their next appointment.

Understand Who You Are Targeting

When using Instagram understand you are targeting a younger audience. Keeping your information short, sweet and to the point will help to keep your post in the minds of your potential clients. Posts to long and detailed will lose their attention as they seek something quicker and more informative. Posting a lot and often is also a good rule for Instagram.

Facebook will provide you with the most extensive reach. Make sure you continue to post everything on your business page each day. Most Facebook users access their account at least once a day, and you want your information out there for them to see when they log on to their feed. Make sure your potential clients know they are able to contact your business by text message, email, and phone to ask about your services and make appointments.

Social media accounts are an excellent way for you to connect with potential clients beyond your chair. Ask your customers to share their experience on Facebook or Twitter and ask if you are able to follow them. This connection will give you the opportunity to share their posts and inquire how their new look is working.

Industry Tips to Create Your Client Base

Working in the salon industry means you want returning customers who will use your services on a regular basis. In order to create those returning customers, you have to find a way for them to enter your door the first time. Building your client base will involve various methods for you to promote your services and send the word out about your salon services.

You will also have to place a high priority on how you treat first-time customers. This treatment will affect whether or not they return, as well as whether or not they spread the word about your work. Your goal is to provide a service they will return to you for the next time they need a haircut, color, new style or spa services.

Display an excellent image, give all your clients the best service possible, and you will not only build a significant client base, but you will also maintain one for years. These are some industry tips to help you create your client base.

Advertise/Promote Your Services in the Community

Whenever there are holiday events or trade shows appearing in your community, you should make arrangements to attend and promote your services. Another great way to support your services in the community is to sponsor a youth group and advertise at their games or through their sportswear.

Host an Open House

Opening a new business is an excellent opportunity to host an open house. Giving away products, or specific treatments will bring in potential clients who you can advertise to about what you have to offer. Provide them with refreshments and information on your prices and the variety of services they will find in your salon.

Be a Listener

Listening is vital to building your client base. Your clients want to be able to express the outcome they're expecting from you and they need to know you are listening. Respond to their requests honestly to build their trust and create a favorable image of your services. Knowing how to perform your job is only about thirty percent of what it takes to be successful in the salon industry.
While it is essential you continue educating yourself on industry changes and improvements, another area to keep improving is your interpersonal skills. You have to know how to interact with your clients and make them feel unique and welcome. You have to make yourself 'likable' which is sometimes the hardest part of this profession.

Attractive Website and Social Media

Your website should be attractive and attention-getting, so viewers want to look through all your information. Promote yourself on Facebook, Twitter, and other social media platforms, so word on your salon reaches as many potential clients as possible. Use the social media sites to talk about new hairstyles, how gift cards make great gift ideas, run contests that generate interaction with your salon, or any other type of promotion.

Referral Program

A referral program or frequent customer cards are an excellent way to reward your clients. You can offer a specific percentage discount on services for each customer your clients refer. The frequent customer cards will have them returning for either a free service when the card is full or discounted services when filled.

Promoting your salon, offering excellent and a variety of services, and having great interpersonal skills will help you build your client base. These tips can help you create the base needed for having a successful business, and you can help maintain it through excellent social and professional skills.

Do I have enough clients to go out on my own?

The goal of every entrepreneur is to have their own business. It can be difficult to gauge how many customers you need if you want to try and make it on your own. A few of the things you need to think about include knowing how much it will cost to operate your own business and what prices you will have to charge per customer to remain competitive and still pay the bills.

Know Your Bottom Line

Know your bottom line. This means you need to learn what your expenses will be if you decide to open your own office. Rent, utilities, staff, insurance, etc., are all essential parts of your business and they all cost money. Figure out how much you will have going out each month and then determine how much you will need to bring in to pay those bills and still make a comfortable wage for yourself and your employees.

Know How Many Clients You Need

The prices you charge for your services are products must be competitive, but they must also be realistic. You need to know how much of a markup you will need to break even as well as what you will need to make a profit. The goal of opening your own business isn't to simply stay afloat in a stream full of other boats. Your ultimate goal is to build the biggest and best boat on the water that will remain afloat even in the worst financial times.

Set Appropriate Goals

Set appropriate goals in terms of where you want to be in one year, five years, and ten years. Know what you will have to do to reach those goals. Learn how many new clients you need each month and then set out to surpass those monthly milestones. As the milestones begin to pile up, the progress toward reaching your goal will become clearer and clearer as time goes on. Make sure both your short-term and long-term goals are in line with one another and then start checking them off one by one.

Knowing how many clients you need to survive on your own financially, is a lesson you will learn as you begin to put together your plan. Learning your product's value as well as its worth is the key to knowing what you should charge. Once you know your prices, then finding the customers is a piece of cake. Set a goal for the number of new clients each month and you will reach your goal in no time. Your business will be off and running and the clients will begin to appear on their own.

Do I need to form an LLC to rent a suite? The Business of Beauty:

If you are a hair stylist, massage therapist or cosmetologist who is ready to step out on your own and have your own business, there are a few things you should know about renting a suite. Renting a commercial space is different than renting an apartment and often requires a higher standard of proving your credibility to a prospective landlord. One way to do this is to make sure that you have your business structure in place, namely, you have registered as a business. And the easiest structure to set up, especially if you are a sole proprietor is a limited liability corporation, otherwise known as an LLC. When you register as an LLC, your business is recognized by the IRS, your state and your locality as a legal business.

What is an LLC?

An LLC is considered the least complex and most flexible business structure. Unlike a more complex type like a C-Corp or S-Corp, if you are a sole proprietor, you have the advantage of pass-through taxes. This means your income from your business is not taxed twice. But most importantly, registering as an LLC makes your business look more legitimate to a prospective landlord or commercial rental agency.

What is Required for a Commercial Rental

While being registered as a business is recommended if you are going to rent a commercial suite, you still might be required to go over a few hurdles before you can rent. Almost every landlord is going to require you prove your credit-worthiness before they will offer you a rental agreement. Even though you have registered your business as an LLC, your personal credit history will be reviewed. This is normally required of almost all small business owners whether they apply for a loan, credit or to rent a commercial space. You may also be required to sign a personal guarantee or have the lease written in your name instead of your LLC’s name.

So, What if Your Credit is So-So?

The good thing about renting commercial space is that there are no set standards. A landlord might be more willing to take a risk on a tenant that has a less-than-stellar credit score than a bank would if you were applying for a loan. Hence, why a landlord may require you to personally guarantee your lease instead of it being done under your business name. You might also be required to pay more in the way of a security deposit until you have proven that you are a good tenant that pays their rent on time.

Most importantly, whether you are just starting out, or have rented commercial property before, make sure to review your rental agreement completely before signing. It may be worth it to have an attorney review it before you sign it to make sure you are not giving up any rights as a renter that could jeopardize your business.

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