If you’re in the beauty industry, you are more than likely a right brained thinker. Being a more creative person means that you favor right brained activities. And, like many entrepreneurs, you probably really dislike the more left-brain tasks of running a business, like admin.
The first bit of good news is that you’re not alone. I’m still not sure why, but I find huge comfort in that and I’m sure you will too.
The second bit of good news is that there is no absolute right or wrong way to go about your pricing.
There are obviously a few things you absolutely have to factor in. Ensuring that you cover your basic expenses, like rent, utilities and labor are to name a few. Below are a few steps that may help you get it right!
Steps to structure your pricing
- Start with simple calculations: Calculate the cost of your materials, labour, rent and utilities. Once you’ve established your base costs you can build on them with the next few steps in mind.
- Familiarise yourself with pricing standards and regulations: You may find that there are certain consumer protection regulations that protect your clients from unfair pricing practices. Check out http://consumerlaw.gov.au/ to make 100% sure.
- Do a little market research and look at your competition: You never want to price yourself out of business by being more expensive than your competition (unless you offer differentials that are justifiable) so make sure you find a balance between not overcharging or undercharging.
- Make provision for mistakes: Although they are few and far between, a client may be unsatisfied with where you placed her (or his) pink spangle on their nail. You may have to issue clients with a refund or a remedy treatment. This costs you time, materials and a paying client that could have filled that extra time. Incorporate a little contingency planning in your pricing.
- Manage perceptions: Always keep in mind that your pricing says a lot about your company and its level of service long before any interaction even occurs. Make sure your price never forms the wrong image in the minds of potential clients. This means not having prices that create expectations of a 5-star celebrity nail bar and on the other side of the spectrum, not coming across as a salon in the Red Light District.
- Ask your clients: The answer may be as simple as engaging with your clients to gauge their expectations. Not only will this help with your pricing structure but will also create engagement with your clients to make them truly feel valued by your company.
- Assess the traffic through your salon: If you have more clients you may be able to buy product in bulk – receiving discounts on larger volumes and reducing your base costs. Busy seasonal times may afford you the luxury of offering discounts for a certain amount of spend or just as a ‘thank you’ to your valued clients.
- Refer to your base calculations: With all the above in mind, you can now determine how much of a markup you can realistically afford to add onto your services.
The last bit of advice we have is this – once you have worked out your pricing structure, put it together in a basic, easy to follow design. There is nothing more frustrating for a client than having to figure out complicated price lists while waiting for their nails to dry or deciding to add an extra nail stamp. Also, make your pricelist available at all contact points – your social media, website and front desk.
We’re sure you have some additional tips to share. Please feel free to add your comments below.