Pricing your salon services is one of the most critical aspects of running a profitable business.
Yet, many salon owners fall into common traps and misconceptions that can hurt their bottom line. Whether you’re a seasoned pro or just starting, knowing what not to do is just as important as knowing what to do.
Let’s bust 10 common myths about pricing salon services and how avoiding these pitfalls can help your business thrive.
What we cover…
Myth 1: “I Need to Offer the Lowest Prices to Attract Clients”
Many salon owners believe that offering rock-bottom prices will draw more clients, but this strategy often backfires.
Discounting your services too heavily can undermine your value and attract clients who are only loyal to the deal, not to your salon. Instead, focus on providing high-quality services and creating a unique client experience that justifies your pricing.
Myth 2: “My Prices Should Match My Competitors”
While it’s good to know what your competitors are charging, basing your pricing solely on theirs can be dangerous.
Every salon has different costs, overheads, and target audiences. Your pricing should reflect your unique expenses, the value you offer, and what will keep your salon profitable.
Insightful Sums helps you calculate your prices based on your actual costs, not just what others are doing.
Myth 3: “Raising Prices Will Scare Away Clients”
This is a huge fear for many salon owners, but the reality is, clients often expect periodic price increases — especially when they see your skills, service, and products improving.
If you communicate the reasons for your price changes and ensure your services remain high-quality, loyal clients will stick around.
Myth 4: “Offering Discounts Is the Only Way to Get More Bookings”
Discounting can be a slippery slope.
While offering the occasional promotion can help bring in new clients, constantly discounting your services erodes your profitability. A strategic approach, like offering value-added services rather than price cuts, can maintain your profit margins while giving clients a reason to book with you.
Tools like Insightful Sums let you see how discounts impact your profits so you can make smarter decisions.
Myth 5: "If I’m Fully Booked, I Don’t Need to Adjust My Prices"
Being fully booked is great, but if your schedule is packed, it could be a sign that your prices are too low.
Higher prices can help you balance your workload while increasing your profitability. Rather than overworking yourself, a slight price increase can help you manage demand without causing you a burnout.
Myth 6: “Higher Prices Will Automatically Mean Higher Profits”
This might sound counterintuitive, but raising your prices without considering your costs or target market can sometimes backfire.
Simply increasing your rates doesn’t guarantee more profit, if you lose clients in the process.
You need to find the right balance between competitive pricing and ensuring your costs are covered—this is where Insightful Sums can help you calculate the sweet spot.
Myth 7: “I Shouldn’t Charge More for Extra Time on Services”
It’s common to assume that if a service takes longer than expected, you shouldn’t charge more.
But time is money.
If certain services require extra attention or effort, your pricing should reflect that. Let your clients know that extended services come with a higher price, and don’t undervalue your time.
With Insightful Sums, you can easily calculate the cost of time-intensive services and ensure you’re not losing money.
Myth 8: “My Clients Will Complain If I Charge More for Premium Products”
Some salon owners hesitate to charge more for using high-quality products.
However, clients appreciate premium products and the results they deliver. Don’t be afraid to adjust your pricing to reflect the cost of the superior materials you’re using.
Clear communication about the benefits of these products will help clients understand the value they’re receiving.
Myth 9: “My Salon Is Too Small to Charge Premium Prices”
Your salon’s size doesn’t dictate its worth!
You can still offer a premium experience even in a smaller space. Focus on what makes your salon special — personalized services, attention to detail, and a welcoming atmosphere.
Clients are willing to pay more for a boutique experience, regardless of the size of your salon.
Myth 10: “Pricing Is Too Complicated to Get Right”
It’s true — pricing can feel overwhelming.
You need to consider your overhead, product costs, staff wages, and profit margins. But it doesn’t have to be complicated with the right tools.
Insightful Sums takes the guesswork out of pricing by helping you break down all the costs associated with running your salon. This way, you can confidently set prices that ensure profitability without stressing over the math.
How to Break Free from Pricing Myths
These pricing myths can hold your salon back from reaching its full potential.
Instead of undercharging or constantly guessing at the right price, Insightful Sums offers an easy solution. By calculating your overheads, staff wages, and ideal profit margins, Insightful Sums allows you to confidently set prices that reflect your value and ensure your salon remains profitable.
Ready to leave pricing guesswork behind? Try Insightful Sums today and watch your profits grow!
