7 Pricing Strategies for Any hairdressing Business!
Salon Owners and freelancers, Are you confused on how to price your services correctly?
Here are 7 different pricing strategies that could work for you:
1. Market penetration strategy:
Set low prices to get the market share.
Pro: Could attract lots of new business when started up.
Con: attracts discount led people and if priced incorrectly could result in a loss.
Suitable for: a service based business with very low operational costs.
2. Price skimming:
Starting at a high price and putting on 'sales' to increase clients during low peak times. This option is usually favoured by airlines.
Pro: high profits can be met if you are a business in demand.
Con: There isn't really any price transparency for customers
Suitable For: A confident Salon Owner or hairdresser who are happy to change their prices based on demand.
3. Premium Pricing:
Charging a higher price because you have something unique to offer or because you are in high demand.
Pro: So many positives here! Work less, earn more and have the lifestyle you want!
Con: Need to overcome the urge to discount and get over any negative money blocks.
Suitable For: A Salon Owner or hairdresser who is in high demand for their services.
4. Economy pricing:
pricing low because your overheads are low.
Pro: Can attract lots of people into the business.
Con: Can attract low value clients who wont pay more.
Suitable For: Someone who wants a “bums on seats” business, who doesn’t mind working more hours to earn more money. Someone who wants to works evening and weekends!
5. Cost-plus pricing:
Calculate the cost to deliver the service and add profit margin to get to the price.
Pro: Always working profitably.
Con: Keep your eye on supplier and operational costs going up because when they do you'll need to increase your prices too.Suitable For: A Salon Owner or hairdresser who knows their numbers, who understands operational costs and profit margins, who is planning for their future.
6. Hourly-based pricing:
Exactly what it says on the tin, work to an hourly rate and make sure your costs and profit are all covered.
Pro: Can be a profitable business model.
Con: Clients may haggle with your time, your time is your money. The more hours you work the more you earn
Suitable For: Salon Owners or hairdressers who are happy to trade time for money. People who want to work hard. People who want a simple pricing strategy.
7. Competitive pricing:
Charge the same as someone else.
Pro: Competitively priced can make it easier for you to justify your prices.
Con: Your business costs are unique, don't assume that your competitor has a clear pricing structure. If your costs are different to your competitor you will likely make a loss on all or some services. If your competitor is making a loss, then so will you!
Suitable For: Salon owners or Hairdressers who are not bothered about earning money. people who don’t know their numbers and not willing to learn or understand.
Do you use any of these pricing strategies?
Clue: picking prices out of thin air is not a strategy!