Why YOUR SALON Could Be LOSING $10K in SALES Per Year!

IE. Why Pricing Matters!!

A Few Key Points

Oh, pricing! The question on everyone's mind. How do I price my services? When do I have a price increase? Why am I working so hard just to cover my expenses? People ask me all the time how to price services or can I just give them a quick tip or two. I truly wish I could. You know I love to give and help out... But getting it right takes time and data. And I want you to get this right. If you find yourself working over 40 hours a week just to cover expenses and you’re just getting by each month. We need to assess your pricing ASAP. But first, let me give you the break down on where you do not want to get YOUR pricing from…

1. Facebook forums

2. Your stylist neighbor down the block

3. Your former salon

4. YOUR FEELINGS

Don’t get me wrong. You can find some great info and starting points on FB about pricing. But Jenny who lives across the county from you telling you she charges $50 for a cut and $75 for a root touch doesn’t help you. You want to price your services based on facts and not feelings. And I want you to feel MORE CONFIDENT while sharing prices in your consultations. We need to gather some data first. So let’s get into it.

1. The 5 Things that Determine Your Pricing

If you have been following me for a while now I have been sharing info as to how prices are determined. It's these 5 things.

1. Time
2. Product
3. Target PROFIT
4. Total biz expenses
5. Demographic.

This is it. This is the most accurate way to price your services with PROFIT wrapped in. You may have even seen my Excel sheet which is 2 parts. It's composed of Budgeting and pricing because one cannot be done without the other. That is the expense part. We plug in your expenses and you can see in real time if you are hitting your target profit each month. And if not. I can show you how to fix it based on the benchmarks provided for each expense category. Plus it gives you your price per minute and price per hour which allows you to see if your current pricing is on point and price new services.

I created these sheets years ago and they are in my Make That Money course for suite owners/renters. And in my Synergy course for commission owners. And I am happy to say this tool has helped so many stylists and owners not only pin down their pricing but also increase their profit. Some have had up to a 22% profit increase after taking my Make That Money course.

2. Why Pricing MATTERS

Why is pricing important? YOUR Pricing is the DRIVER of these 3 very important things.

1. Your sales
2. Your profit
3. Your schedule.

If it's off by just a few dollars it can hit your sales by thousands of dollars. For instance. If your pricing of off by just $10 per client and you see 20 clients a week. You are LOSING 10,400 PER year in sales. That is a ton of money and you deserve to make that money. If you haven’t raised your prices in over a year to a year and a half. It’s time. You are leaving so much money on the table and you are having to work way harder than you should.

I wanted to share some resources that can help you get started in the right direction on pricing and take a deeper look into how your pricing is affecting your business. I also got you covered when it comes to price increases. Click the link below to enjoy my FREE pricing class on increasing prices.

Get the FREE class!

Psst! MORE Free resources are a click away!

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