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The bitterness of poor quality remains long after the sweetness of low price is forgotten. — Benjamin Franklin
When you find your place, take some time to research the pricing of your competitors in the area. However, do not get distracted by their prices. Your pricing should not be based on what others are charging — it should be calculated strategically.
Many salon owners fail to realize that after calculating costs and deciding on a markup, pricing should always be directly linked to service duration.
Let's compare two professionals: A skilled barber completes a men's haircut in 15 minutes for £20. A hairstylist charges £40 for a women's haircut, but with washing and drying it takes 50-60 minutes.
Even if the profit on a women's haircut is £35, a skilled barber can complete four men's haircuts in the same time, generating £80 per hour with minimal product costs.
Now consider Balayage: priced at £250-£350, but product costs can be £100+. The service takes 3-4 hours, meaning the revenue per hour is £83 — the same as a barber doing four quick haircuts.
Start with your most frequently sold service. Determine how much you earn per hour from that service. Use this rate as a baseline for all other services.
The way you describe a service can significantly influence a client's perception of its value, even if the price remains the same.
For example, "Women's haircut with wash and blow-dry" versus "Women's haircut, including a deeply hydrating shampoo experience with an invigorating scalp massage, followed by a professional blow-dry using premium styling products."
Both services might have the exact same price. However, the second description paints a much richer picture. This isn't about misleading the client; it's about effectively communicating the inherent value.
"No matter what problems you face, never — absolutely never — lower your prices."
A salon owner I once competed with reduced his prices by a third after COVID. Within weeks, his team of seven shrank to just him — no one was willing to stay for significantly lower pay.
Cheap pricing attracts price-sensitive clients who leave as soon as they find a better deal. Talented professionals avoid working for low-end salons because lower prices mean lower commission-based earnings.
Experienced businesses tie their prices to inflation, making small adjustments once or twice a year. If you're afraid to raise your prices, you're setting yourself up for failure.