Your expenses determine your prices
The days of calling the salon down the street to determine your salon prices are waaayyyyy over. Actually it never really was a thing in the first place. But if this is how you are determining your prices, you may be short changing yourself big time!
There is a formula on how to set your salon prices. But let me ask you this!
Do you know what it costs you to operate your salon PER MINUTE? Why is this important? Because once you know that number you can price your services correctly. This is all based off of expenses, target profit, how many days your salon is open, how many stylists you have on the floor per day, and how many hours they work per day. Yes you have to consider your demographic as well.
But it all starts with your expenses and desired profit margin! Here is how you can calculate this:
Add up all your expenses, add in your target profit %, divide that by how many days per month you are open. THIS will actually give you the number you need each day to operate your salon per day. In other words it’s called your break even number. Want to take it a step further?
I created an excel sheet, which is in my monthly membership program, that actually calculates this for you. All you have to do is plug in your numbers and boom... you have your price per minute. Now you can start to see if your prices are where they are supposed to be. And if not... I will help you get there!
Every dollar counts in this business. You can’t afford to charge any less than what your expenses and profit margin allow!
Struggle with this and increasing your prices? Don’t worry. Pricing and price increases already dropped in month in my monthly membership program! And I mean I go all in on this. The when, why, and how of price increases! Are you ready to charge your worth? Let’s do it!
LOOKING FOR MORE? I have a 3 day FREE TRIAL running right now until 3/28 on both the Empowered Salon owner and the Empowered hairstylist monthly membership program! Over 75 videos total in both programs with pdf files and excel sheets just waiting for you! CLICK HERE TO LEARN MORE!