Did you know that the cost of doing business increases by 3% each year?
As a consumer in today’s society, we know that this is going to happen in all industries. So, why is it so hard for salon and spa owners to raise their prices?
For some, it may be that they were never taught the correct way to calculate their pricing. For others, it’s the guilt that they carry when having to tell their clients about the price increases. The list goes on.
If you’re one of these owners who can relate, ask yourself “Is it enough? Am I making money?”
Watch this training and learn how to charge correctly and find out what’s been holding you back from doing so in the past:
So, how do you figure out what your prices should be?
No, it’s not calling the salon down the street and seeing what they charge, and it’s certainly not asking your staff and clients what it should be.
Your pricing needs to be based on your finances.
This is why knowing your numbers is critical. It’s all carefully crafted based on your income vs expenses, what your desired profit is, and your level of skill and performance.
It’s so important to track every single penny of what you spend so that you are able to fully dive deep into calculating what you should be charging. This is something that we hit on heavily in our B-School for Industry program where we spend a full day on knowing your numbers and seeing specifically what needs to be done to boost profits.
Now that you know how to figure out your pricing, it’s time to ask yourself another question.
What’s making you hesitant from charging the right prices?
Fear is the number one reason why salon and spa owners don’t charge their worth.
F.E.A.R (False Evidence Appearing Real)
Often times, we make up these stories in our heads that stem from the fear we have. You might be afraid of losing clients, losing staff, or just being afraid of being successful.
Time is valuable and it needs to be acknowledged. Sit down and make a list on all of the time you have spent expanding your knowledge, how much money you spent on the classes you’ve taken over the last 5 years. This is a good reminder to yourself that you are worth more than you’re giving yourself credit for and to not feel guilty for increasing your prices. Your clients will understand and most likely be more than willing to support you.
You don’t want to catch them off guard, so simply tell them about it before hand in an email, text, phone call, or in person at their previous appointment. Post some signs up in your salon so that everyone can see and print out new menus.
Once you’ve figured out how to price, what’s holding you back from doing so, and how to address that, it’s time to put it into action. State a “by when” date for a price increase and stick to it!
Wanna find out exactly what your prices should be? Download our Pricing Your Services tool.
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