Have you ever looked at the price of something and wondered where on earth they came up with that number? Well-known brands can charge more because they are well-established and have the confidence that people will pay that price. However, if you’re not a big brand spa or salon, figuring out your rates may be challenging. Try these tips to help you become a pricing master.
Know your market
One of the best things you can do is be aware of what others are pricing for similar products and services. Check out local spas and salons to find out how they price their services. If you offer excellent services then charge more; if you’re not providing services above and beyond the competition, then charge less.
Realize your worth
In the salon industry, experience and expertise are priceless. Clients are prepared to pay the big bucks for knowledge and years of experience. So, if you’re a new esthetician or cosmetologist, you’ll need to price your just below the marketing value. Have a ton of experience? Don’t see yourself short!
Bundling your services can increase your revenue and help you with pricing. Wrap a cut, color, and deep-conditioning into one. Or perhaps a manicure, pedicure, and eyebrow wax. Clients enjoy choosing a bundled service and often feel like they get a discount. Creating a few bundle services helps cut down on time and increases your revenue.
Know your bottom line
At the end of the day, your pricing needs to reflect your expenses. We all have expenses to pay, and the whole goal is to make a living, so you can’t be making less than you are spending. Factor in your products, time, and experience when deciding on price points.
Pricing products and services isn’t the easiest, but with these few tips, you should have a better idea of where to start. If after a year or so you find your prices are too low and you think your services are worth more, up your prices! In this industry, increasing prices is quite common, so don’t get stuck in a price rut. There is always room to grow.