Sometimes we have to discard our preconceptions with price and almost start from a blank canvas. We get a bit bogged down with, prices we have always charged, what the competition is charging, and what our staff think we should charge.

The danger is you end up forgetting that it is the client who is choosing the services they have, and that price can be a barrier for some clients.

Small changes to your pricing can make a big difference

1. Analyse your actual charge rate per hour

Your charge rate per hour must give you a comfortable profit margin after paying wages, stock and fixed overheads such as rent, rates utilities etc. Then all your prices should be as near to that desired hourly rate as possible. Then add on an additional cost of product. Remember that products used in highlighting can be as much as 25% of the whole service!

2. Identify your most popular services

Use your salon software to clearly show which services you do the most of and importantly have the highest re-booking rate - if it is Cut and Finish, and perhaps half head highlights, then those services could increase more, than perhaps other, less popular services.

Barber management

3. Ensure that within your salon you have at least 3 tiers in your price structure

This allows clients to move from one tier to another depending on their financial circumstances. It also creates a clear career path for stylists to progress up through the various tiers based on their performance. It’s vital that you write up some criteria for promotion based around their takings to target %, and their re-booking %.

Note: If you have more than 8 staff you should be looking at having a four tier structure.

4. Selectively increase your prices

Never increase all your prices across the board and always give your clients at least 4 or 6 weeks’ notice in writing of an increase. Your price list should be at least A2 size and displayed in your window, with the lowest tier on the left, and the highest on the right. I always find it strange when it is the other way around, as clients read from left to right and will therefore perceive the salons prices as high!

5. If you do Wet Cuts

And lots of salons do, then your focus should be to narrow the gap by increasing the price of Wet Cuts so that the difference between a Wet Cut and a Cut and Finish is minimal. After all, the real value of the visit is the Cut.


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