Beauty salon pricing should be based on 3 components:
- salon expenses
- how much your competitors charge
- brand: if you a luxury salon, a high price is part of your brand. If you have a very affordable salon, your price should be as low.
Beauty salon pricing should be based on 3 components:
Beauty salon pricing should be based on salon expenses, including the cost of used materials , salaries, rental fees, all kinds of bills, etc. It is quite complicated to calculate. Even more difficult to distribute all costs among all services. So, we have a solution, which we tested at our own salons + approved by our clients’ salons.
Count how much you pay for the materials your technicians use at the salon. We recommend to estimate an average cost for each service you provide without such details, as of the nails length and other features.
Just calculate a usual cost of materials the following services:
Calculated the cost? Now simply multiply the cost of each service by 5.
If the question “Why should I multiply by 5 exactly?” arises in your head, then read the explanation right here below. If you are ready to take our word for it, then skip the next paragraph.
Why we recommend to multiply by 5. There is a universal formula describing the finances of any beauty:
This is a universal formula for any salon. If your finances are distributed differently, it is recommended to carefully review and change them to bring them closer to the formula.
Now we are only interested in the second paragraph. Please note: the materials cost is 20%, i.e. this is the 5th part of the total amount of the salon turnover. Thus, the materials cost is the 5th part of the amount your salon is receiving from the clients. Therefore, the price of any of your services is equal to the cost of materials multiplied by 5.
Do not worry if you are confused😊. Just follow our recommendation: calculate the cost of materials you spend on 1 client and multiply this figure by 5.
Compare the calculated prices with the prices of your competitors. Sometimes the market price of a service is much higher than the calculated one. Of course, you do not need to sell your services at a very low price. If your price is significantly lower than competitors’ one, then increase yours. It is a very good situation. We recommend you to increase prices and at the same time to extend your assortment to give more value to your clients. Buy more different colors of varnish, new decor, purchase better products.
One else point. For premium class salons it is important to keep prices above the market. It is a part of branding. Low-end salons should strive to give very affordable prices. However, the majority of salons should offer average market prices.
Probably you will get about the same cost of nail strengthening and gel polish coating. We strongly recommend to charge the same for strengthening and gel polish. It is important! The experience of our own beauty salons proves: you win more following the recommendation. Let me explain why it is so.
Most clients order gel nails. You have to understand that the client does not want this particular service. Ladies want a manicure that does not break and does not fall off within 4-5 weeks.
Therefore, before a technician starts to perform the gel polish coating she should advise the client and suggest strengthening her natural nails. If a girl has weak nails, then it is important to explain to her that with gel strengthening she has fewer chips, the coating lasts at least 4-5 weeks. If the price of both services is the same, the girl easily agrees to try it. This manicure is more resistant and nails look 100% natural. Once she tried she always chooses the strengthening. She can get gel nails anywhere, and only high-quality salons offer strengthening. The girl will come back to you for such a great manicure and recommend your salon to her friends.
Your technicians should make the client wear manicure as long as possible, then you have loyal clients.
You have 2 options on how to equalize prices. To reduce the price of the strengthening to the level of gel polish or vice versa, to increase the gel nails price. It is easier to lower the price of strengthening, otherwise, you may lose part of your clientele who got used to gel nails. Reducing the price of strengthening will ensure business success in the long term.
People want simplicity and clarity. It is not recommended to have a large detailed menu on many sheets. Such a list does not sell your services. It only scares and confuses customers.
You know this kind of salons: you call to book it, they give you some average price. After getting the service and the bill is surprised you because the price has gone up. Girls do not want unpleasant surprises at the time of payment. Such a situation is very bad for your salon business. You lose clients.
If you think your customers do not care how much they pay, you are mistaken. Even very rich people take care of money, although they do not demonstrate it.
Do you want your service menu is working to sell for you? The best option is “all-inclusive” pricing. What does it mean and why does it work well?
Remember how you traveled somewhere for holidays and stayed at a hotel, where everything is already included in the room price. You relax, use all kind of treatment & entertainment the hotel provides, do not worry about anything. After such a holiday, you are back home with a great mood and the best memories.
Now, remember a holiday at a hotel, where the room price includes breakfast only. We carefully read the restaurant menu, compare prices, plan expenses. Have you had this kind of experience? All of it brings stress. Let your salon visitors to avoid such stress and they will love your salon.
The price list should be arranged that way the girl knows how much she will pay exactly and be absolutely calm. Thus, you should have a very short service menu consists of 4-5 options for each section. For example, the nail section consists of the followings:
The price should include everything. For example, if a girl already has nail polish, that needs to be removed, do not charge extra. The removing is already included in the price. The base & top cover, a nail repair, a manual massage and everything else are also included in the price. The client may refuse any of the additional included services, however, it will not change the price. All customers receive a full range of services at a fixed price.
The lady will be happy with your astonishing manicure service and calm regarding the payment. It is a guarantee of loyalty to your salon.
All-inclusive gives one more benefit for the salon. It reduces the scope of work for a salon manager and a technician to determine which service to provide. Our experience proves: the work process runs faster and more smoothly.
It is confirmed by our experience!
We are sure this new approach to the salon pricing will provide you with an increase in the sales and profitability of your beauty salon. If you have questions, write to firstname.lastname@example.org or through the online chat. ❤️❤️❤️