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Getting Your Pricing Right

Getting your pricing right is so important for any salon if you want to make a profit and grow your business.

Read our advice on how to correctly setup your salon pricing strategy.

Getting the pricing right

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:

  • Your location.
    • Your target market.
    • The range and type of services you offer.
    • Whether you're going for high-volume turnover or the luxury end of the market.

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.

When to increase your prices

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. 

Increasing retail sales

There are a number of steps you can take to encourage your staff to sell more products and boost your profits. For example:

  • Make sure they tell clients which products they are using on them while educating them about the benefits - this will encourage clients to buy the products for use between appointments.
  • Encourage your staff to sell the products they really love - their genuine enthusiasm will be infectious.
  • Ask your supplier to run a training session for staff so they fully understand the products and their benefits.
  • Offer a monthly prize for best salesperson.

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. 

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