You can believe me when I share with you, I have struggled with price increases more than once as a Salon Owner of 24 years.
I’ve gone through the turmoil in my head over and over again, trying to make a decision.
I’ve let my fear of losing clients, stop me from making a decision which in actually, I knew would be better for my Business.
FEAR STIFLED ME
When we are fearful, we lose our confidence. We begin to second guess ourselves. Therefore, we freeze and do nothing.
In time, we find ourselves angry and questioning whether you want to stay in this Business or not.
That my friends, is the sound of Business.
Many Technicians/Salon Owners don’t;
- Know their cost
- Don’t have the confidence
I saw a post on social media this week, making a comment that she loves the brand LCN, yet she says it’s too expensive. I thought to myself, she doesn’t know. She’s assuming.
In reality, LCN and Footlogix which are two(2) brands we carry at Centre for Beauty, are both within the same range. In total, it cost less than $2.25 per pedicure service. THAT is not high at all. And, I would venture to say, unless you are using off market products, most good brands are mostly around the same $ cost.
It is very important to know your cost!
Along with that, you should know what your square footage cost is. Take your total rent expense, add in your utilities and divide it by the number of sq footage. I like to add utilities because it’s a non-tangeable.
If you pay $1000 rent per week and your space is 800 sq ft, your per square footage cost is $1.25 per sq foot.
Now add your product cost add your square footage cost together. Or $3.50 per square footage. Double it. $7.00 per sq footage.
THAT is your starting price. However, now you have to add all your other sundries and expenses.
I am giving you the wicked short version. Yet, what I’m telling you is knowing your cost has nothing to do with confidence, it’s Business. It has nothing to do with losing clients, it’s Business. If you want to stay in Business, you must know your cost and charge accordingly.
There is much more when it comes to figuring your Salon hard core cost. There are some great people who have written book after book about this topic. I suggest if you haven’t read them….do it now!
However, cost is only part of the battle. The real battle lies in confidence. Are you confident enough to know what your hourly worth is. What is your value? How much are you worth?
We have to be real. If you are a veteran in this industry and you aren’t putting a value of at least $100 per hour on yourself…..get out. On the other hand, if you are new to the Industry, gaining knowledge and experience can only dictate that type of hourly wage. However, you don’t want to price yourself at a McDonalds rate either.
In addition, a yearly price increase is not out of the question. Ask yourself this. If you were working any other job and didn’t get rewarded yearly for your hard work and dedication….would you stay?
I know the biggest hurdle is the fear of losing clients. This concern is valid which is why you aren’t going to over price yourself for your expertise and your location. And, having a $10-$15 price increase each year and offering no “perceived” value…..will cause you to lose clients.
Yet, if you establish fair pricing from the beginning with cost of living increases on a yearly basis…you deal with none of the aggravation which typically comes along with it.
Look at what we have all been dealing with economically. I use to be able to drive through McDonald’s on my road trips and spend less than $5.00 for a filet of fish and a drink. Heck, a filet of fish by itself now is $5.00. However, I keep going back. It’s convenient and quick.
Why do I pay the prices I do for my Salon services? Experience, knowledge, good quality products. You get what you pay for.
Let’s talk a minute about the fear of losing clients. There are two(2) things I am sure of;
- If a client is going to leave you due to a price increase, that is not the client you want. That is a clear signal they don’t appreciate you.
- They typically come back.
We have to stop worrying about what other people will do and begin to do what’s best for your Business, what’s best for you.
This coming weekend I begin my 3-day Missing Pieces class. As I’m finishing the workbook and power point, I’m literally jumping out of my skin to begin this class. There is so much information to share, so many break out sessions so my attendees can come up with their own plan, so much so much so much…..I can’t wait to share. This topic is not something to be covered in just one article, or even one day.
Yet, as I go through it all, I know the biggest hurdle is for me to instill confidence and help these attendees push through their fear. I assure you, they will ALL be in a better place by the time this class ends. What is your biggest hurdle?
I encourage you at this point, stop struggling. Figure out your bottom line cost. Whether you initiate a price increase or not, figure it out. If nothing else, it will tell you where you are and give you an idea of where you need to go. If you need any assistance, feel free to reach out.
