One of the very first things a salon owner has to think about is how much they should charge for their services. In this article, we will help you in detail as to how you should go about pricing your services. Make sure you design the right fee schedule. You neither want to overcharge nor undercharge because both these situations have their own consequences.
Here are the basic factors that you need to take into account when preparing your price list.
Billable Working Hours
Figure out the number of hours you are going to work in a day. Then, determine the number of billable and non-billable working hours. Billable working hours are those when you are serving your clients and generating income. Non-billable hours are the ones when your salon is operational but not generating income. This includes the time spent on doing the administrative work, cleaning up and other salon maintenance tasks. Make sure your non-billable hours only 25% of your working hours.
Count Your Business Expenses
Don’t miss even a single detail. Take all your salon expenses such as rent, utilities, phone, products, salaries, etc into account. Make a detailed schedule. Be as accurate as possible. Also, incorporate inflation in your estimates so try to go with a higher estimate from month to month. It’s always better for your actual figures to turn out lower than your budgeted figures.
Do A Break-Even Analysis
This means dividing your total expenses by the total number of scheduled hours each month. Once you have this figured out, now you need to determine how much you should charge per session. The difference will help you pay for your operating expenses and break even.
Determine How Much You Want To Make
Doing this means knowing how much an esthetician should charge. Your charges depend on your credentials, personal expenses, personal preferences, and industry trends. Your time is valuable and you are one talented professional. Set prices that reflect all these facets.
Consider Your Location and Audience
How much an esthetician should charge also depends on the location and audience of your salon. A salon located in a slightly posh area will charge higher because of higher rental costs and a more refined image.
Also, see how much your customer base is willing to pay. There are different types of clients; one who looks for the lowest prices and the other type does not mind paying higher as long as they like the services.
Go Easy On the Discounts
Day-of-deals, introductory discounts are a great way to push your business but they can also convey a wrong idea about your business to the customers. Strategize your discounts well. Use discounts on services that don’t take to complete. Just ensure it doesn’t make you come off as being desperate for more business.