Last week I talked about the Perfect Pedicure. While writing, I thought back to the days when I had my Salon and what I did as well as what I didn’t do.
I spoke of the after life. Many times you’ll hear me say, “I really don’t know how I knew this…it’s just innate”. (inborn; natural). I think back to many things I did in my Salon which proved to be “proper” Things which I just knew I didn’t want…..like jetted pedicure tubs.
There are reasons why we do or don’t do certain things. Is it because of our belief? Is it because we are followers? Is it because we are big dreamers? Is it because we have to? Is it just because?
When it comes to pricing our services, I know there are many people who do NOT price their services where they need to be. Whether they think it’s because they want to be fair? Is it because they don’t know how to price their services, is it because they are thinking they want to stay competitive? Or, is it because they don’t think they are worth it?
I think of my good friend Nellie Neal. We all know how glamorous and eccentric he is.
What’s interesting to me about Nellie, he is the epitome of be who you are and let that reflect in your services and your service dollars.
Nellie had a price increase in February. He just had another price increase due to COVID19. Many of you don’t feel this is the time to “raise your prices”. Is it?
Many of you shake your head at what Nellie charges. What you don’t realize though, Nellie feels and knows he’s worth it…..THAT’S the difference!
Raising prices during COVID19 has been a big topic over the past couple of months. It’s interesting watching comments from all over the spectrum.
What I would ask you is “have you raised the bar”? Have you changed the way you do things “for the better”?
Forget the idea that you have to spread out your clients and maybe take one(1) less client a day. I’m talking about making your Business a safer place for you, your team and your clients. I’m talking about better sanitizing procedures. I’m talking about Education.
Knowledge is Power. Going back to Nellie. Nellie isn’t knowledgable about just one(1) thing. He has a little knowledge about a lot of things. Knowledge that he has learned over many years attending many classes, trade shows etc.
You may think his appearances at Trade Shows, are just that….appearances. However, he uses that time visiting other Vendors, learning of new items, new processes and how to continuously improve the trade he is already great at. He never stops learning.
His clients know this. They look forward to the new he might come back from a trip with. They appreciate the time away, the travel, the lost income to make his travel all possible. They respect him for it.
Therefore, they have no problem with paying for his knowledge. THAT is how he is able to charge the prices he charges.
When I bought my Salon, I bought into already established pricing. Over the course of many years I adjusted accordingly.
When I built my new facility from the ground up, I did research around the area I was building. I was appalled by the general pricing. I couldn’t conform.
I charged the pricing I did based not only on Business expenses. I priced according to the knowledge of my staff and the products I was using. The more knowledgeable we became, the more the price went up.
In 2008 when I met Footlogix and changed my entire service venue from Gena products to Footlogix, my pricing went up $25.00 per pedicure. We went from $45.00 – $70.00 We had no challenges with the increase.
My clients knew of my introduction to the brand and we were able to show them the difference in the quality. And… they appreciated the growth.
During COVID19 we, as a Distributor have experienced things we have never experienced before.
- Major price increases
- Delayed deliveries
- Backordered-out of stock products
- Allotment of products
- And more!
These COVID19 times are stressful.
I chose and have shared with you, to absorb much of the price increases I’ve experienced…at least for a few months. I chose this not only because my Salons were out of work. I choose to do this and notify you for future reference, so you can make your plans for what you need to do.
In this case, it’s a hard good. It’s not about my personal time.
Trust me, because of the change in logistics with hard goods, I’m working 60 hours per week and getting a lot more grey hairs really fast. It has not been easy.
However, I know this is only temporary. It will change.
When it comes to your services and what your Salon policies are going forward…these are forever changes. You never go back. You only go forward until the next change….forward.
So, how then do your price your Pedicure services?
First and foremost you have to know your cost.
- Square footage cost
- Cost of products
Square footage cost includes everything it takes for that square footage to break even.
Cost of products is everything used in the service. Tools and equipment should be considered in your square footage cost, not your product cost.
I personally feel the biggest mistake most people make, is determining cost based on flat rate instead of percentages.
- What percentage should your rent be of total income
- What percentage is your labor cost of total income
- What percentage is your product cost of total income
You can google and I know there are some great people like Tina Alberino who wrote books on determining your cost which you can reflect to.
When it comes to Business…it is all relative. 10%, 25% increase in sales is amazing. Doesn’t matter if it’s 10% of $100 or 10% of 100,000.00.
KNOW WHAT YOUR PERCENTAGES ARE
Once your square footage cost is determined, the next factor is your worth!
I’ve said this before….”If you are going to work for $15.00 per hour, your may as well go to Starbucks or McDonals to where you at least get the benefits”.
KNOW YOUR WORTH
When I was hiring for my Salon, I always asked the following;
There is no right or wrong answer; IF YOU COULD PAINT THE PERFECT SCENERIO…what would it be?
- How many hours a week do you want to work?
- Do you want to work nights or days?
- What services do you not like to do?
- How much money do you want to make?
If you can answer these questions, you can determine your worth. Much to my dismay, the answers were dismal…or they didn’t know how to answer at all.
They couldn’t dream. They couldn’t commit. They couldn’t imagine. They weren’t right for me.
It’s so strange to me that people don’t know the answer to those questions.
When I began raising my prices at my Salon, I posted a banner on the front of my building….
WE FIX THOSE $15.00 NAILS
It wasn’t intended to put down the competition, it was intended to let people know…we are qualified in the services we offer. We are knowledgeable in our Profession and we want to brag about it.
So, the last thing you want to do in determining your pricing is making sure you have the credentials to earn it.
- Are you using quality foot care products
- Are you continuously educating yourself
- Are you, are your services worth what you are charging
If you don’t know how much you want to work, nor how much you want to make….how the heck do you determine your cost?
Are you going based on the Salons around you? Are you following what you think might be the norm? Are you afraid you may not sell your services if your prices are too high?
If you answered yes to any of the above….you be forever in a rut and never get anywhere. You will always be working harder and not smarter.
To price your services properly you need to know your worth. Ask yourself these questions;
- How many hours per week do I want to work
- Do I want to work nights, days, weekends?
- How much do I want to make?
- Am I educated
- Am I staying educated
- Am I providing a safe environment
- Am I doing the best I can for my clients
Once you know your square footage cost, once you know the answers above….only then you can begin to determine your prices….and go after it.
Getting back to Nellie.
He for sure knows the cost associated with his services and there is absolutely no doubt he knows his own worth. Which….changes upwardly yearly.
However, he also recognizes, perceived value is just as important. He recognizes giving the client more than what they expect is important.
He also knows, he makes no apologies for asking the price he deserves.