KNOW YOUR WORTH!
Hey all!
This week I want to share my insight on one of the industry’s most discussed topics!
Service pricing and the dialogue around money!
Over the last ten years, the discussion and procedures for service pricing has drastically changed for the better! When I started doing hair there were hair magazines lining the waiting area table for clients to find inspiration for what they wanted their hair to look like. This was before everyone had iphones and pinterest. The way that most people found a salon was by walking by the studio and making sure it was the most affordable haircut in the area.
When I first started behind the chair I was just excited to just be doing hair and definitely was not focused on what I was charging. I was doing haircuts for $40 and offering $10 off their first haircut. Yes! I was doing $30 haircuts that took me 60 minutes AND included hot tool styling.
Hindsight is twenty/twenty. But, I will say, for having minimal experience my competitive pricing helped me practice my techniques, learn from mistakes and build a clientele.
Fast forward to today, you’ll find that social media has propelled our industry from being just a necessity into clients wanting, and paying, for a specialist to offer insight and direction for a customized hair experience. If 8 years ago you would have told me that I would one day charge triple the amount for my haircut while working just three blocks from my original salon, I wouldn’t have believed you. I’ve put in the work, created the experience, and maintained boundaries that have earned me the respect in the industry. Let me share how you can duplicate this!
Education and training is at our fingertips! Aside from paying hundreds or even thousands of dollars for advanced hair education, there are countless platforms in which we find technical information or professional motivation to bring into our work behind the chair.
This is why I want to loudly say: KNOW YOUR WORTH!
To do this, you first must do your homework!
In order to get comfortable with WHAT to charge for each service you have to first create a clear service list. Your service list should be concise with only 7-12 options for services. If you write out your list and it’s more than 12 options, I suggest bundling some of the services. Keeping a clear and concise service list will encourage clear communication for each appointment.
Next, find salons in the area in which you admire. Visit their website and check out their service charges. Take note of the range of charges for each of their services. After that, find a few salons that you feel don’t offer elevated experiences or are corporate chain companies. I suggest finding three luxury salons and three entry level salons. Finally, find the average of their charges. Example: Luxury salons charge $100 for haircuts and entry level salons charge $30 for haircuts. The average haircut would be $65!
Understanding that growth behind the chair comes with time, experience, training, and client retention, I would then create a five tier price list based off of haircuts local salons. To do this we will use the above formula!
Entry Level Salon: $30
Mid Level Salon: $65
Luxury Salon: $100
Now let’s add two more levels by finding averages! One between Entry level and one between Luxury Level:
Entry Level Salon: $30
Entry Plus: $47.50 ($30+$65/2)
Mid Level Salon: $65
Mid Level Plus: $82.50 ($65+$100/2)
Luxury Salon: $100
Wondering where you would fall in this example?
(0-12 months experience)
If you are newer to having a chair or still have some work to do with your training, I suggest aiming for Entry Plus pricing, or in this example, $47.50. If you’re serious about creating a customized experience for your clients and you're dedicated to learning, then pricing yourself slightly higher than the lowest cost haircut will let clients know that you’re serious about your craft and that you aim to create an elevated experience.
(12-24 months experience)
When you have built a foundation in both technical skill, customer service and client retention your target price points should be the Mid Level pricing, or in this example, $65. Mid Level pricing is usually what most salons in a given radius charge. This is also the price range in which most stylists get stuck! Don’t let your early success distract you from bigger goals.
Now, unlike the Entry Level through Mid Level price increases, the Mid Level Plus to Luxury Level price increase comes with more than JUST time behind the chair. If the average for a haircut in your area is $65, then any amount over $65 must be justified. I have met stylists that have only been behind the chair for 2 years that create a better experience and technical haircut application than stylists that have been doing hair for 10 years. Time doesn’t matter. The skill level and studio haircut experience does!
Here are the FIVE things to track in order to increase from Mid Level pricing to Mid Level Plus and then ultimately Luxury Pricing:
Client Experience. This transcends just the experience they receive in your chair. You’ll want to work with your studio owner to make sure that each client is receiving personalized and professional communication from the time they book their appointment, to the time they arrive at the studio, to the moment they sit in your chair.
Technical Knowledge. In order to charge more for your services, you have to be able to provide all services! In the example of a haircut, this means that you have to be able to confidently execute short, medium and long length haircuts for straight to curly texture clients. On top of providing a precise haircut, you also have to possess the skills to show the client how to wear and style the hair at home. Sharing this knowledge with your client during their appointment will show them that you care about how they feel about their appearance at home. Also, that you want them to be successful at duplicating the results that you have on their own!
Excitement. Throughout the booking process the client should receive unparalleled customer service. If you don't feel as though the studio provides that, then I recommend getting involved with pre-appointment scheduling or pre-appointment consultations. This only takes a few minutes a day to look at your schedule for the upcoming week and send a personalized message through the salon, email or instagram letting the client know that you are looking forward to seeing them. It also opens the door to ask for a current hair photo and inspiration hair photo so that you can prepare for their appointment. Creating excitement before their appointment will make it easier to maintain the excitement throughout their appointment!
Honesty. When a client receives a customized booking experience, phenomenal customer service, and technical styling guidance this will create TRUST. Once a client recognizes you as the professional, it will be a lot easier to communicate your opinions about their hair style, color or cut. From the beginning, it is so very important to be honest with the client. Be honest about timing, costs, and what will look good and wear well.
Boundaries. In order to maintain a professional relationship and charge accordingly, make sure to set, and KEEP, boundaries with your clients. Oversharing, or over talking, takes away from their experience with you and the salon. Also, even though it can feel like each client is a friend, remember that this is your job. Some clients may become your friend over time but remember that they are requesting and paying for a service. I have met some of my best friends to this day through doing their hair! My recommendation is to keep your personal cell phone number sacred, do not provide hair services outside of the salon environment and direct any personally sent messages about appointments to the front desk team at your salon.
Once you have mastered the five areas listed above then there is only one more area to track in order to know WHEN to raise your prices!
CLIENT RETENTION!
When you are booked 8-12 weeks in advance, it is clear that you have retained a large amount of your clientele and they are reliable. This means that the supply (amount of appointments available in your book) is low and the demand (amount of clients requesting to see you) is high! This shows it's time to jump from Mid Level to Mid Level Plus! Once you are booked 12 weeks out, your book of clients is full! This means that another price increase can happen! Use your judgment and work with your salon to find what the best course of action is to increase prices above Mid Level Plus!
Let’s talk about the conversation about money…
I often get asked these questions, and here are my responses:
Question: I was only planning on spending $200 for my hair, is there a way that we can achieve what I want without spending $300?
Answer: I totally respect that you have budgeted for your hair appointment today and I will do my best to work within your budget. With that being said, there is no way for me to achieve your goal photos without providing the full services required. It’s important to me that your color and cut will last months and therefore I don’t cut corners while performing my services. If you’re uncomfortable spending $300 for me to achieve your look, I can show you other inspiration photos that will take me less time and cost less to achieve or I can recommend a fellow stylist on my team with lower service charges. How would you like to proceed?
Question: I didn’t ask for a gloss or two glosses and I didnt know that they would be additional charges. Can we skip the gloss today?
Answer: After lightening your hair it is important to melt the color seamlessly together with a root gloss and end gloss. These steps are very important in order to prevent unwanted warmth or dimension. For all of my blodning services, I require that each service receives 1-2 glosses to maximize harmony and longevity of your color. If you are not comfortable with the service charges, we can look at other hair color goals or I can refer you to a fellow stylist with lower service charges. How would you like to proceed?
Question: Hi, I had my hair colored 8 weeks ago and paid $300, which was already over my budget and I didnt want to spend that much, and the color is already fading. Can I come in for a color adjustment/fix?
Answer: I first want to thank you for coming in two months ago for your color, cut and style services! As I mentioned in our consultation, color maintenance for your full balayage hair color is anywhere from 6-12 weeks depending on how frequently you are shampooing your hair, the products in which you are using and your overall hair routine. Complimentary adjustments are ALWAYS offered within 10 days of the color service if you are unhappy with the outcome. If you feel that your color has faded, we can refresh your color with 1-2 glosses, $35-$70. You do not need to repeat the full service to keep the color fresh! To make sure that you feel that your experience at the studio has been stellar and to keep you loving your hair, I’ll offer a complimentary deep conditioning treatment when you schedule your glosses! When would you like to reserve the appointment?
The bottom line:
If you are unsure about WHAT to charge for your services, do some research and find some average service prices.
If you’re having trouble with HOW TO navigate the discussion around service prices with your clients, be upfront and honest. Always include the list of services you will be providing in the consultation and ask the client if they have any questions about the services, timing or costs.
If you’re unsure on WHEN to raise your prices, take a step back and rate yourself on studio experience, client experience in your chair, your technical knowledge and your rebooking rate. Remember once you have the skills, rebook your clients and build a strong book. Once you’re booked 8-12 weeks out raise your prices! Yearly price increases are a must.
Always set BOUNDARIES! You are an experienced professional so make sure to act like it! Be clear in your consultations, don’t overshare your personal stories, keep your personal cell number private and NEVER offer hair services outside of the salon.
Having clear guidelines for yourself and your clients will allow you to book out farther, have more new service requests and maintain a strong book. All of this will allow you to predict your income level in 2 weeks, 3 months and even 6 months. Remember, we do hair because it is our passion, BUT it is also our career and work.
Respect yourself, your personal space and give yourself clear paths to success and financial freedom!
Until next week, keep sharing the love!
XOXO,
Bobby
