The Rough Patches of a Business
When you’re an entrepreneur or in the hair business of proving a service, one of the toughest things to decide is pricing. How to determine your selling prices is not always the easiest thing to do, but is something that gets better with time.
In the hair industry, determining selling prices can be challenging even when there are so many services a stylist is offering. For hairstylists, they offer at least ten different services to their customers. Those services can include a range from having low to high selling prices, too. For a beginner stylist, sometimes that’s overwhelming to try and figure out.
So what many do is grab a price from out the sky. They determine their price from nothing. But that’s not what you want to do though. Your prices should have a purpose behind them. They should get based on many determining factors. Also, someone may ask you how you came up with your pricing, and it’s good to have a solid response.
Continue reading as we discuss how to determine your selling prices.
The most important thing to know about yourself is your worth. Not only on an individual level but also when it comes to business.
Knowing your worth and how valuable you are will set the bar for everything you do. When it comes to the hair industry, which is a saturated market, you must know how to stand out from the rest.
When you know you’re worth you can begin the process of determining your prices. You may want to ask yourself “what can I bring to the table?” It’s going to be crucial that you know things about your skill that’s different from others. If you know you can provide a service or have a technique to styling that others don’t, put a high price tag on that.
It’s almost like saying “look, I have something that you want and only I can execute this.” I remember early in my business career I use to be terrible at setting prices. I wondered if people were going to purchase what I had to offer. I also thought my price was too high at times, but what I was doing was being cheap.
I didn’t realize that I’m not the person purchasing my items, my customers are, and it’s not my job to think for them.
You have to look yourself in the mirror and tell yourself you are worthy of the price you come up with because you have something great to offer to your customers.
Another way to determine your selling prices is to check out your competition’s prices.
Let’s use a sew-in style for example. If the average price of a sew-in, in your area, is about $100 and you’re charging $50, it would be best to raise your prices. You most likely chose $50 without any reason, which is what we have to stop doing. If on average sew-ins are around $100, that means they are worth that amount.
When it comes to competition, you want to at least be at the same price or a little bit over from another hairstylist. Now, of course, you have to make sure you can deliver the type of skill needed for that price too. If you have the skill level, then set your price higher.
Also, keep in mind your competition is your reference point. You can always compare your techniques and styles with theirs (maybe through social media) and see if your prices are close or not.
Use your competition as a guide and not anything negative.
How much experience you have as a hairstylist plays a big part in determining your prices.
Truthfully, if you’re someone who is fresh out of cosmetology school, you may want to set your prices on the low side. Being a new stylist means you still have some learning to do so you may be prone to mistakes.
It’s not going to look too good if you’re charging almost $200 for an installation style and it doesn’t look like a $200 job. In the beginning, try to view that season as a time to build your clientele and portfolio. Offer lower prices to your customers, so it’s a win-win situation. They potentially get a great style for a low amount while you get to extend your practices.
Now, if you’ve been in the hair industry as a stylist for at least ten years, you deserve to charge that $200 for an installation style. Experience means everything. Most importantly, it shows how valuable of an artist you are.
Also, there are tons of people who love spending their money on great service. Having experience also shows that you’re trustworthy. I rather have someone who has 20 years of experience working on my hair than someone who has two years.
You can also mark your prices up since you know you have value to bring!
The value of the service is something that gets overlooked at times but is a great way to determine your pricing. Some stylists have a flat rate when they should either charge per hour or style.
For example, a wash and curl, box braids and a cut are three completely different styles and should have three completely different selling prices. Each style also requires a different skill set. Elements such as time, technique and effort play a vital role. So below, I’ll show you a potential price break down and explore all angles of each style to determine a price.
Wash and Curl
A wash and curl is a very simple style and doesn’t take much technique to complete. It’s also a very quick style.
Most times, a stylist is not performing the wash set; it’s usually a shampoo person. Because of that, the stylists only has to blow dry the customer and curl their hair. Depending on hair length, a blow dry won’t take longer than 20 minutes. Then the curling step is all that is left to do.
Again, depending on styling, if it’s a basic curl, it won’t take more than 30 minutes. So in total, you’re looking at a style that’s almost an hour. Of course, you can charge what you like, but that style is typically around $50.
Box braids are one of the longest, strategic styles ever.
From making sure, the parts are correct to ensure the real hair doesn’t come out; this style requires attention to detail. When proving box braids, the biggest part to take into consideration is your time.
You will spend hours braiding, which will also limit how many heads you can style for that day. When it comes to determining your price, it would be good to charge by the hour for this style. Since it’s going to take up a lot of your day, you need to charge for that.
You can also take into consideration the amount of money you won’t get and include half of that.
Although a haircut doesn’t take as long as box braids, it’s also another strategic style.
It requires a certain skill because once you cut the hair off; you can’t get it back, right away at least. If you ever notice, haircuts aren’t cheap; and we’re not talking about barbering.
A great haircut should cost the customer a pretty penny but not as much as box braids. It takes a special eye to reshape someone’s hair, and that’s not free. Also, taking into account the shears you purchased to cut hair.
You’re providing a special style while using the best tools.
Amongst your average hairstylist is also a specialist. Specialists in the hair industry are known for focusing on one technique.
They have gone to school, went to classes and even have had extensive training hours. They know how to master whatever field therein. So when determining your selling prices, make sure you take your education and skill level into consideration.
Specialists are hard workers, and they take time in learning the skill they have mastered and should get paid a little more than a regular stylist.
When determining your pricing, it’s wise to use your location as a reference point.
Think of your location as the area that’s going to pay your bills because essentially that’s what it is. For example, if your salon is a poverty-stricken area, it’s a high chance you won’t have people spending $200 on a sew-in style. It’s important to review your location because it’s going to tell you what people can spend, for the most part.
Now, if your location is in a middle-class location, there’s certain spec’s to look at for determining your price. Walk through the nearest grocery store and do some people watching. If you see people have the latest cell phone, sneakers, purses, etc., then it’s a clear sign they are willing to spend money on their appearance, such as their hair.
They may not have a big house or fancy car, but they have funds for other expensive items.
Locations that are in wealthy give you a better experience determining prices. You will know that the people in that area are willing to pay whatever price a stylist will set. That’s why store prices are always higher in fancy areas because they know they can take advantage of that.
But that’s not a bad thing! You’re just using the area in your favor when calculating pricing.
As the beauty industry is changing, we’re starting to see more home-based salons.
Now, many believe that since the service is taking place inside a home instead of a salon, that customer pricing is lower than normal. However, that couldn’t be further from the truth!
When you’re a home-based stylist, determining your pricing, don’t be surprised if your price stays the same or even goes higher. When you’re home, it’s a good chance that you turned a sectioned of your house into a salon. That means money was used to fund all repairs and upgrades in the house.
Also, you’re going to have to use electric that runs through your house, which means a higher bill for you. You will have to review some of these things when figuring your price.
Well of course, when you’re a hairstylist, those supplies you use aren’t going to buy themselves!
Furthermore, in business, it’s standard to make sure you get a return on your money. Which means if you spend $1000 on hair products and tools in one month, you’re going to need to incorporate that into your pricing. Or even if you calculate how much money you will spend in the year on products, then factor that amount into your pricing.
There will be many investments that a stylist will make to ensure their business will flow correctly. Keep in mind that those hair appointments should be paying you back, in a sense.
Determine Hair Extension Pricing
Hair extensions have officially taken over the hair industry! It’s one of the biggest businesses out right now.
But there are still many people who want in, on the booming business. When you’re becoming a hair extension dealer, often time’s people wonder if they will make a profit because of the prices. Some even struggle with not knowing how low or high to set the prices. Well, below I’ll give you a few tips that will help you decide.
Just like any service you’re providing, many elements take place for the service to run smoother. For instance, when selling hair extensions, you have to figure out what your wholesale prices are, email marketing prices and even website cost.
Those are parts of the business that gets paid each month. So you’ll have to factor that in when determining your price. Also, besides making sure your expenses are covered, make sure you’ll have extra to make as well because you want to make some money!
The Competition is Real
Competition is a big factor for hair extensions.
It’s many different hair brands on the market; customers now have many options compared to years ago. I suggest searching the hair dealers that are in your area and see what their prices are and also feedback. They may have low pricing but terrible feedback.
Therefore, you could raise your selling prices higher and make sure you’re providing excellent service to your customers. Remember people will pay more for great quality service.
Also, who is your market? Knowing who you want to sell hair to will help you to determine your selling prices. So if you’re selling hair to college students, then you may want to have prices on the lower side. College students aren’t holding down a full-time job, yet so you would have to be mindful of that. If you’re targeting to wealthy people, then you have wiggle room to raise the prices.
Either way, have an idea of whom you want to sell your product to because everyone can’t be your customer.
Private Label Extensions Wholesale Program
Are you someone who wants to start a hair extension business but needs some guidance? Well, Private Label Extensions Wholesale Program is just what you’ll need to get started.
They have helped many Entrepreneurs and salon owners sell hair extensions. They even have a wide variety of options that you can choose. If you also need help with package design, PLE can help with that as well!
When it comes to purchasing your hair products, there’s just a $300 minimum order that’s required. They offer options for to ship out your product to you or you can even stop by and pick it up! They have a wonderful hair showroom where customers and clients can order from and even touch the hair.
If you want to make sure you’re running your hair extensions business correctly, check out Private Label Extensions!
Now You’re Ready to Sell
Running a business can be tuff, especially when you have to do some soul searching and research to figure out how much you want to charge your customers!
After reading this article, you should have more of an understanding of how to determine your selling prices. Although there’s a lot of elements that get factored in, eventually you will be able to set prices with your eyes closed.
As long as you’re aware of your worth, value, time and skill level, you will have no issues. Sometimes there can be a lot of stress and worry when figuring out selling prices. But the most important key to remember is that you are worthy of the price you set. If someone doesn’t want to purchase something from you or take one of your services, that’s perfectly all right. Tons of other people will. Research your sale numbers, and don’t budge!
Are you in the hair industry, and have issues determining your selling prices? Tell me in the comment section what you’re doing to become better!