Price increase

About raising your prices! Why? How? When?

I had a great conversation with one of my Beauty piers the other day which, could have gone on for hours if we both had the time.

Our conversation was in regard to our Beauty image, Schools & Training and Price increases.

Although I’ve covered in short version these topics in my blog in the past, much of what she said and upon request I find it important to speak in depth about why, when and how to have a price increase.

Image; The general impression which a person, organization or product presents to the public.

Training; The action of teaching a person a particular skill or type of behavior.

Confidence; The feeling or belief that one can rely on someone or something; firm trust!

 

Prices; The amount of money expected, required, or given in payment for something.

Gosh, my fingers can’t type as fast as what is running through my head, so let’s start with training.

Our Industry first of all, goes through a cycle. If you are wanting to get into learning the trade of Nail Technician only, there is a cycle in our Industry which, you can only do this by going to full cosmetology school.

The reasons are many however, what happens is when not enough student’s are signing up for classes, the schools are unable to receive financial aid to offer. Consequently what happens is the nail programs are demolished and if you want to be a Nail Technician you have to apply Cosmetology, covering Hair, Skin and Nails.

This isn’t all bad as learning more than one art in our Industry can be beneficial. However, it takes a lot longer before you can actually obtain your license to work AND….the biggest problem (in regard to Nails), is the minimum amount of Nail training you actually receive in the Cosmetology programs.

I have always recommended to anyone wanting to choose the Beauty Industry as a Profession to begin with Nails. Get your feet wet and then decide if this Industry is for you. Spending $3000.00 is a whole lot less than spending $10,000 for a Profession which….you decide may not be exactly what you thought it might be.

Although some of your larger vo-tech schools may cancel their nail programs, be sure to always check out your smaller, local schools. However, be aware: What you need to know, is not always what you learn. Self education, is always the best education. School provides the basics, and the license. To perfect your trade requires lot’s of practice and lot’s of continuous education.

The other problem I see (and experienced) with our Beauty Schools, is the lack of basic fundamental training such as

  • Confidence building
  • Client relations
  • Business economics

Hold onto these thoughts….I’ll be referring back to them shortly.

Title

Image is another lost forgotten aspect.  5 years ago the trendies came out and said “NO leggings outside your home”.

It stopped for a short period of time and then Covid hit. Leggings is all we wore. Working from home gave us the freedom of our own “comfort” level and, we took that outside our homes. Consequently, one can only think of “image” as inconsequential.

I don’t and I never will. I get highly irritated by;

  • Pictures and or videos of your large breast.
  • Soiled clothing in the pedicure room, as witnessed on Facebook
  • No makeup, hair not styled.
  • Dusty, dirty surrounding.

I honestly don’t care if you are in this Beauty industry or not. Your image is YOU. Your image should be deserving of respect. Your image is your first defense.

Gaining respect, feeling confident and more is a definite result of your image.

Your training, your image, builds confidence!

The more prepared you are. The more comfortable you are with your trade. The more educated you become. The more confidence you will build.

The more you accept yourself for you. The more you realize you are confident. Dress for success. Present a clean, strong image. The more confident you will become.

What is all this important in relation to price increases? Great question!

It’s really quite simple. If you know your worth, you will charge it!

If you know;

  • The training you have done or continue to do have given you the skills needed and you feel confident in those skills? You will charge accordingly.
  • If you know the image you portray is worthy of the prices you charge, you will charge accordingly.

It is your confidence which allows you to make the changes you need to make.

Let’s put this into further perspective. It isn’t just about you. It’s about our Industry.

  • We are looked down upon because we charge McDonald. brand pricing.
  • We don’t look the part.
  • We talk more about the bling than what is truly important in the care of our clients. Making them feel beautiful as a part of their mental health.

Our Industry is making very small strides in repairing our image. It takes all of us.

Getting to the point of my article: Price increases….

Firstly, I know there may be many who disagree with me yet, I really don’t think it matters what time of year you do it. Sure, there are valid arguments for certain times of the year however, I think consistency is the key. I feel it needs to be done yearly, at the same time every year.

  • The typical cost of living increase is 2-3%. That should be your base increase every year.
  • You can calculate your increases in cost, and if there is a substantial difference….add another 1% or more, whatever you see valid.

2nd, the very first thing you need to calculate is your sq footage cost.

  • Let’s say you have 1000 sq ft and your rent is $1000 per month. Your square footage cost is $1.00
  • However, that really isn’t your sq footage cost. You need to add in your fixed cost like electric, water etc.
  • Then, don’t forget your everyday cost expense for toilet paper, coffee, water, wine or. whatever you bring into. your Business on a daily basis.

We can now estimate that. your square footage cost might actually be…$10.00 per sq foot.

WHY IS THIS IMPORTANT”

Let’s say you have a table taking 4 sq feet of space. You have to calculate that into your. prices.

  • 4 sq feet of spaces = $40.00 ($10.00 x 4) – keeping it simple!
  • 5 clients  per day = $8.00 per client ($40.00 divided by 5)

This is JUST to cover your sq footage overhead which you need to cover.

Additionally, you must know every bit of cost in your service arena. Let’s take a pedicure:

  • Actual product cost (soak, scrub, callus etc.)
  • Do you add essential oils to your bath? Need the cost
  • Files
  • Polish remover
  • Cotton pads
  • Tools
  • Polish
  • Gel remover
  • Et.c etc…..the list goes on and on. EVERY bit of everything you use in your service, MUST be accounted for.

So now, you know your share footage cost and your know the cost of your products…..do you know your cost?

What does “your cost” mean? Simply put….how much do YOU want to make in an hour.

Let’s say;

  • Square footage cost per client is $8.00
  • Product cost per client is $15.00
  • You spend 1.5 hr’s on that client
  • You charge $35.00 per pedicure (Yes, I hear it all the time)

$35.00 -($15.00) -($8.00) = $12.00 left over

It takes you 1.5 hrs for that pedicure, your worth $3.00?????

It’s really simple math….it’s math you must do in order to make a good living and survive.

Put a worth on yourself….are you worth $3.00 per hr?, $10.00 per hr? $100.00 per hour?

Whatever that worth is, calculate it into your prices.

This has been a very difficult article to write. These specifics are very short and to the point. There is so much involved we have to think about in order to do what we love, make money at what we do and “save” our industry.

I want to leave you with these final thoughts!

  • Don’t cross the line between Business and friendships
    • If your friends don’t respect your worth, they aren’t your friends.
  • If you are working for $3.00 per client…find another career
    • Not only are you doing yourself an injustice….you are doing our Beauty Industry an injustice.
  • Think about the last time you walked into a restaurant, whether it be Taco Bell or an expensive steak house?
    • Do you negotiate the prices on the menu?
  • Are you confident in yourself?
  • Are you continuously educating?
  • Do you look the part?
  • Do you act the part?

If you have any questions, or would like me to dwell into this further, I am happy to assist. My feeling is, the more Technicians we have that run their Business like a Business, the better chance we have of our Beauty Image changing.

There are also some very good people and books in our Industry and even classes which cover these topics. Just remember…it doesn’t have to be complicated….it just has to be done right. I’ve covered the very simple basics….to give you food for thought.

CJ Murray, President

CJ Murray
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6 thoughts on “About raising your prices! Why? How? When?”

  1. Excellent information.

    Useful formula.
    Elevating!!!

    I’ve been licensed and behind the nail table 33 wonderful years.

    1. I’m right there with ya Paula…34 years, 24 of which I owned my own Salon. Wish I had this info available to me back then. Trial and error is how I learned…and THAT was the hard way. Thank you for reading and thank you also for responding.

  2. Thank you for being informative on this! You’re right it’s never easy to raise prices but it’s definitely critical to do so. Costs of everything has increased dramatically over the past couple years especially. The bottom line is the bottom line. Our clients want/need increase in their wages and we are no different.
    Blessings!!

    1. LeaAn you are spot on. However, the reality is, why do we wait for a concrete price increase. By doing a little every year, we stay consistent and our clients don’t get so sticker shocked right? Thanks for reading and responding. I sincerely appreciate it.

  3. Excellent! There’s so much great info in this article. It’s not just technical skills it’s business skills that need to be taught and schools fail at that. They say when you graduate you can make this much per year, but they don’t teach how to make that per year. Thanks for your thoughts on this.

    1. Thanks for the conversation which sparked this article. I really had so much more to say, just not enough space LOL. Appreciate your comments…they are so incredibly true and sad at the same time.

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