Getting your pricing right
Formulating your prices is one of the hardest aspects of running your own business, trying to strike that balance to attract new clients and keep existing clients, as well as making a profit to build your business further.
We recently announced a price rise, and our MD Victoria Lynch shared some insights into the many factors that contribute to the rising costs in our industry.
The biggest takeaway to share with your clients is to educate them on the reasons behind this so they appreciate not only the product more, but your passion and skills to stay loyal to your business. Essentially the hair is a precious resource that takes time to grow, and good quality hair is becoming scarcer. Here’s some helpful considerations:
- Give options in terms of hair quality. For example, we have different price points for our Elegance and Luxury hair ranges that can last up to 12 months and 9 months respectively with good aftercare.
- Quote not only for the hair fitting but the ongoing maintenance costs so they understand the complete commitment. This might also involve other treatments and services that you offer too.
- Spend time educating clients in good aftercare and the proper products and reasons to return on time for maintenance appointments.
Ultimately, if they invest a little more money initially for higher hair quality (and that comes with the added back up of Hairsurance®, the hair will last longer, and the outlay is therefore more reasonable. The hope is that having paid for something better, consumers will also invest financially in the correct aftercare and additional time it takes to care for the hair to make it last longer.
For creating your pricing, here's some handy hints you might find useful:
- Pricing will vary between stylists depending on location, overheads, and the quality of products they are buying. There is also a difference in cost of stylists depending on their skills, where a salon junior costs less than the Salon Director. Similarly, award-winning stylists may charge a little more.
- As a Trade Account holder you can download our prices and please pay attention to the different price points depending on lengths and colours, with the lighter and special colour processing commanding a slightly higher price. Also note the packet sizes or hair quantity, as these do vary between products. You may also wish to add on the cost of delivery.
- Consider other suppliers and when their prices normally are to allow for this and save you having to constantly change your prices.
- Examples of pricing structures vary from calculating all the costs + time, or maybe if you have few overheads simply using the cost of the hair and multiplying this out for example doubling it. It is down to the individual extensionist how they show and explain this to the client as one price or breaking it down.
- Creating Guideline Pricing is helpful to direct enquiries too. For example, quoting average full head price from …, then half head etc. for your Instagram Stories. Some stylists add this to the bottom of their posts to help give an indication of the costs.
- Try to encourage them to come in for a full consultation to get a price based on the method, length, colour and quantity that works for the look they want. The trick is to know exactly what your client needs during the consultation so you can advise the right product, and therefore cost, of what matches their results and expectations.
- It’s a great chance to explain the costs so they can appreciate the breakdown. For example, if a client wants 24" 200g mermaid hair and you say this is £1000, they may walk out and look elsewhere. However if you explain the product cost is £900, and my hourly rate to fit the hair is …; then a client can appreciate and absorb the difference between product cost and service cost when broken down. Not everyone will want to work this way though.
- For many stylists and salons; Consultations are free, no-obligation appointments but with a rise of no-shows many stylists take a small booking fee for this appointment and credit this on if they book in. Similarly, Cancellation Fees are becoming the norm in the industry to capture their card details at the time of booking and charging if they do not show up. It is recommended to have policies in place, and share these on your online booking form, social media, website, in salon and through SMS appointment reminder too.
- Consider creating packages for example including aftercare to set them off on the right path; or for all the add on costs such as maintenance and removal in one deal. Maybe even offer a deal for regular blow dries to help them handle their hair.
- We hold high stock levels of our hair, so you simply order as and when you need to, and should you have a no-show it is possible to return the hair for a refund. This all helps your cash flow.
- Whilst your focus may be the more permanent extensions, don’t forget our range of hair pieces that are perfect for special occasions, bridal work and younger or first-time extension wearers. Please also see our RRP prices on our Price List to help guide your pricing.
- You may wish to hold some stock for the aftercare range including brushes and styling tools. Our gift sets are eye-catching too and look fantastic in retail areas. You can download a price list from within your account area.
- Pricing is so individual to the stylist, but we just want to leave you with this thought for your customers to maybe appreciate your worth as a professional.