Pricing your Salon Services so you can make a decent Revenue and Profit.

Being a successful salon owner means pricing your salon services correctly, making a worthy take-home profit and paying your team well. Its front and centre is the centre of attention in 2023.

However, this is not always the case for salon owners. They really struggle with pricing their services correctly.

Many salon businesses are suffering from a PRICING LAPSE BACKSLIDE. This is a bigger problem than we have ever seen or experienced before. It’s crushing the dreams of salon owners every day.

To keep those dreams alive everyone is telling you to put up your prices to solve your problems.

Problems like:

➘Not enough $$$ revenue each day to cover your fixed costs.

💰Money struggles around how to pay your permanent team so that they feel valued. They want to feel that it’s worth it to stay working in a salon environment and are not tempted to go freelance/ rent a chair or solo operator.

💸 Having enough money to invest in your business. New equipment your salon needs and products the team like to use. Your gowns and towels are a bit worse for wear! Your dryer has seen better days or maybe you’ve started doing your towels because a laundry service is too expensive.

💰Affording the extra training your team needs to stay engaged. Keeping them keen and interested plus producing good quality work that your customer’s love takes time, resources and money.

💸Wishing you had the funds to support a sustainable salon initiative that will keep you aligned with your goals..

💰Feeling like your salon brand is a little tired and getting behind the new salons in your area. It takes money to get your website redone, social media managed, and graphics on point.

Plus what about your customers?

Chocolate fish are only 10 cents and a general plain tea bag a little more but wouldn’t it be nicer to have cocktails and nibbles, tea trays with treats like you see other salons having on social media?

How do they afford that with the price of everything going up so much?

However, pricing your salon services correctly does not always please your long-term customers.

The Customer Guilt Trap is a very real and present problem that I see salon owners struggling with.

Your regular customers can be holding you back from growing your salon business by-

Guilting you into staying on the floor and behind the chair and demanding it’s only you they want to see. They can outwardly resist your price increases. 

Plus push boundaries when it comes to cancelling last minute and paying booking and cancellation fees.

If this is the case you are letting your regular clients keep your salon stuck and broke.

Guilting you into staying the same is something I see customers doing to salons and salon owners because they are resisting change.

Read more about that HERE

The questions you need to ask yourself is …Does putting up your prices by $2 here and there help?

Does it help you solve these issues in your business and create the salon you wanted when you started out?

Because making ends meet is just getting harder and harder right? Things have gone up so much! 

Salon owners are working pretty hard right now to keep the doors open. I bet if you’re a salon owner who is trying to adapt to the crazy times you are feeling a bit overloaded too. 

​You probably don’t even realise that some of the old outdated ways you are doing things are causing your business to suffer so much.

Suffering from a  Pricing Lapse Backslide in your business is like trying to run uphill on a muddy slope. More sliding down than going up! 

Exhausting and futile. 

And it’s hardly surprising that you are feeling the pinch and wondering what you can possibly do to get back on track!! 

The last couple of years has just been a constant juggle with lockdowns, team instability, and bad hires, let alone inflation.

Learn more about what a PRICING LAPSE BACKSLIDE is in my video below.

Putting up your prices is only one strategy.

Pricing Salon Services and how you implement increases is the difference between really achieving your financial goals or just plugging 1 hole in your bucket.

Ask yourself,

What services do you currently provide and how do you present them to your potential customers?

How do you figure out and implement a price increase so it actually makes a difference?

What is your target and goal for this year when pricing your salon services and how can you work backwards to achieve that goal?

Where are the holes in your current salon pricing, booking, and follow-up? These cost salons thousands of dollars without them realising it.

What’s the % of clients to services and what does that % say about your current income streams?

Utilisation is another hole in the bucket so how are you setting your targets and bonuses with the utilisation figures taken into consideration?

WHY is pricing salon services correctly and raising your prices so scary for you?

Think about it like this….

It’s the smart way to increase revenue and profits.

The hard way is to just try and cram in more people.

It’s the smart way to market your business.

The hard way is to slash prices and compete with the low end.

It’s the smart way to pay your team well.

The hard way is to be working from a broken pay-and-earn strategy.

It’s the smart way to provide a top-end service, and perfect solutions and transformations.

The hard way is to be using cheap products and underselling your time for no gain.

Business is all about creating desire and working to your advantage – providing your expertise and an exchange of value.

I tell my coaching students that valuing yourself helps attract dream clients and I show them how in my programs. Pricing is part of this and it needs attention if you want your business to be a success.

In my next video, I will share a secret from Customer Attraction Mastery that helps give my students the confidence to raise their prices and know their worth

Business is all about creating desire and working to your advantage – providing your expertise and an exchange of value.

I tell my coaching students that valuing yourself helps attract dream clients and I show them how in my programs. Pricing is part of this and it needs attention if you want your business to be a success.

In my next video, I will share a secret from Customer Attraction Mastery that helps give my students the confidence to raise their prices and know their worth

Spending lots of energy on decisions like  ‘Should I take a cab or a bus’ Is time you’re not spending on helping to make the business successful!

The 3 Fixes to your Broken Pricing Strategy

Pricing Salon Services Correctly is important because if you don’t fix this you missing thousands of dollars when it comes to managing your salon finances.

No Salon business works as a charity and these facts show you the truth.

FACTS

  • Up to one-quarter of small business founders, especially new ones, don’t pay themselves as they do employees.
  • That’s a mistake which can add to financial stress and end up negatively impacting their business decision-making.
  • Half of business owners take home less than $100,000 annually, and while there is no one-size-fits-all approach, too many business owners skimp on their own salary.

Many business owners are afraid of choking their business by paying themselves too much, but setting the bar too low can be equally problematic since they could easily become consumed with the stress of trying to make ends meet.

If you’re spending too much energy thinking about things like ‘Should I take a cab or a bus,’ ” Do I Get a massage and Pedi or no..not this month’… it’s time you’re not spending on helping to make the business successful!

Knowing your numbers, taking a Profit First Approach and valuing your contribution are some of the first steps.

To go more in-depth on these things read this.

If you want to know more about how you can finally get what you need I have got something to help you below.

If you want to Increase Your Salon Revenue and Profitability

Get your copy of my 3 Steps to Designing Services That Sell

There is a Money Mindset Guide to help you create the abundance mindset you need for success, a Profitability Calculator so you can understand the numbers that affect your profits, revenue and salon success, and an Effective Customer Communication Guide so you can learn the 5Cs for consultation success.

Click here to learn more…