SPONSORED: Beauty professionals, are you charging your worth?
When you get your prices right, everything else comes into place, says Melanie Wallace, UK Marketing Manager at Timely Business Management Software.
Whether you're new to the beauty industry or have been in the game for a while, it can be hard to know what to charge.
Some business owners worry that if they put their prices too high, they'll scare customers away. However, if you don't charge enough, you run the risk of losing out on profits and burning out.
Here's the thing: there is a sweet spot. You can increase your prices while still retaining your clients. Here's how:
Know your worth
Have your prices remained the same for a handful of years? Think about your skills, professionalism and experience, along with that of your staff. You provide an excellent service (we know you do) and there is no shame in asking for what you're worth.
Conduct a review
Your price list needs to be simple and profitable. Start by working out where you are now. Businesses powered by Timely Business Management Software can run over 40 reports, including an executive summary, to quickly and easily understand how the business is doing.
Remember you're charging for both your skills and your time. Try working out your current cost per minute for a snapshot of your most and least profitable services. Take each service and divide it by the time you use (e.g. £50 cut over 45 mins – 50 divided by 45 = £1.11 per minute).
Factor in rising costs
The cost of living is on a steady incline. Consider your rent, bills, insurance and overheads. Ask yourself: have these costs increased in the last 12 months? And by what percentage?
Spread the word
When increasing your prices, communication is key. Timely's powerful digital marketing tools allow you to spread the word quickly and easily via email and SMS. Simply build an email or SMS campaign and send to all clients or a targeted group.
Most clients will understand, especially if they've been with you for a while. Don't be afraid to be honest about the rising costs of business. From time to time, a small price increase is to be expected. You've got this.
For more information on how Timely business management software can help your salon or spa, contact the team at 020 3808 0465 / gettimely.com