“The moment you make a mistake in pricing, you’re eating into your reputation or your profits.” – Katharine Paine
Pricing for some salon and spa owners is an ongoing dilemma…I can’t increase my prices, my clients can’t afford it…my clients will all leave me…I don’t know what to charge so I will just leave my prices the same. These are just a few of the crazy thoughts that can bounce around in your head and stop you from receiving a healthy bite of the “profit cake.”
My advice…let go of the emotion. Even though we love our clients, this is business. A business needs to make a profit to thrive and survive, and you need a return on your $, responsibilities and time investment!
Could you have an increase before Christmas?
Of course, print out your Product/Service List from the reports tab, choose Service as the type and you have a list of your Service menu. Maybe it’s also a good time to delete unused services. It’s also important to remember if you want to give discounts, create a discount code that is applied to an existing service rather creating a new service each time. Keeping your service menu streamlined is vital to avoid confusion for your team and clients.
Your clients pay for your product not you!
Think like a mechanic, they charge you for the part and the time it took to put it in your car. Your pricing formula should be based on the cost of your stock (the part) and the overheads of your business – rent, wages etc (the labour) and of course a profit component.
That’s why the “ring around and see what everyone else is charging” strategy is a big hit and miss. If you price too low you will always struggle to eat the “profit cake.”
If you would like a salon pricing formula then click here for Secret Sauce for Salons – Priceology. You can easily modify this formula for beauty as well.
If you don’t have your stock set up on Kitomba then you could be missing out on profit due to over ordering, stock wastage and undercharging. Calculating your order and spend on Kitomba will allow you to benchmark your product spend against your turnover. It’s easy to get up and running. Learn more about managing stock and selling retail with Kitomba University.