Read our advice on how to correctly setup your salon pricing strategy.
Calculate how much you’re paying out, for example, wages, stock, rent, rates, utility bills, and accountancy/banking costs. You’ll need to increase your prices if you are only just breaking even or making a loss.
Deciding how much you’re going to charge is a crucial decision to get right. There are lots of factors to consider, for example:
Hair salons and barbershops with a number of staff should consider offering tiered pricing based on the level of experience each employee has. This will help to increase your profits and also offer a clear career path to help inspire and motivate your staff.
If possible, it’s a good idea to increase your prices at the start of each new financial year in April. This will make sense to clients and be more acceptable to them. Always give at least six weeks’ notice – don’t spring it on your clients.
Make sure all your staff will be able to explain the reasons for the price increases. For example, suppliers’ higher costs and increases in wages, rent and rates.
There are a number of steps you can take to encourage your staff to sell more products and boost your profits. For example:
You can also make the most of special days and seasons, for example, taking part in ‘Mother’s Day Offers’ in March and promoting products that protect against sun and sea damage during the summer.
Always have clearly priced ‘impulse buys’ on display at your reception desk – for example, travel-sized products during the holiday season and wrapped gifts in the run-up to Christmas.
You could also consider offering your range of products in an online shop. However, you would need to comply with online trading laws and have highly organised and secure systems in place to handle orders, returns and refunds.