Whenever I speak about pricing, someone always asks, ‘How much should I raise my prices?’ And they want an answer, as if you just pick a number out of the air!
It’s almost like a total stranger walking up to you in a store, asking, “How should I wear my hair?” Well, there are a lot of options!! And you would need to have much more information if you were going to give them a new look that they would actually enjoy.
I’m always trying to make things simple to understand, and those 4 pillars came to me as the core pieces that need to be in alignment to create pricing that works for you, your clients and creating (or sustaining) a profitable business. Notice all of them have to do with you! That’s because Pricing is Personal. That’s why charging what someone else is charging rarely works. And why you don’t feel confident when you tell your clients your prices.
Here are the 4 Pillars of Pricing, which is your key to personalized and profitable pricing:
Your Brand - Who are you, or do you want to be, in the marketplace? Are you hi-end, moderate or low-end? Are you chic, avant-garde or professional? Who are the clients you attract? Trendy students? Busy Moms? Professionals or Executives?
Your Level of Experience - Not always in years, but in your depth of knowledge. Why would someone come to you? What other challenges can you help them with? What hair textures are you comfortable with? What are your people skills like? Do you understand personality types and how to handle demanding or confident clients, or rude clients - without losing your cool?
Your Overhead or Expenses - Even if you’re in the same neighborhood, it does not mean your expenses are the same. You could have a loan on your furniture, someone else could have a concession on their rent and it’s only half of yours. And someone else may be buying their building, or maybe even have created a related stream of income, that gives them more flexibility with their service pricing, and keeps them profitable! The TRUTH is, MOST Hair Stylists don’t know how much their salon expenses are and they only have a general sense of their home expenses. Without considering this info, it’s easy to find yourself putting money into your business, instead of being able to take money out. This may be the difference between staying in business or going out of business.
Your Services or Specialty - What services do you offer? Are they exclusive? Do you use a certain technique? Do you have a specialty? Are you known for that specialty? You’ve probably heard it a million times before, specialists make more than generalists. And it’s true.
If you think of each of these pillars like a table leg, each one needs to be in alignment in order for the table top to sit level. That’s how you start to design pricing that works for you. No spreadsheets required. What’s your most challenging area?
P.S. Want to raise your prices before the holidays? I’m hosting a private Masterclass for The Luxury Hairstylist Blueprint and I’d love to invite you. If you’re interested in more details, let’s meet. Click below to schedule.
Miki Wright, founder of www.BeautySuperStars.com and host of the Beauty SuperStars Talk Podcast, is respected as a leader in the Beauty Industry. Wright, a Salon Business Coach and Pricing Strategist, has been a long time Educator at many of the top Hair Shows in the country. She continues to share her knowledge to help Beauty Pros create the clientele, income and lifestyle they desire with her FREE Webinar, Level Up! The Salon Pricing Masterclass and other online classes.
Beauty SuperStars Talk gives beauty enthusiasts a backstage pass to ‘Experts in Beauty’ and offers interviews that celebrate Black Beauty Bosses who are excelling in the Beauty Industry. Follow her on https://youtube.com/mikiwright
Wright is the former Owner of Fabulous Finishes Salon and Day Spa, which was one of the first African-American owned spa facilities in the country! In addition, her salon was selected by Salon Today Magazine as one of the “200 Fastest Growing Salons” in the country, for three consecutive years! Be sure to grab your FREE copy of the Hairstylist's Power Pricing Workbook at https://www.beautysuperstars.com/pricing