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If you’re a hair and beauty salon owner with staff members, who is constantly advertising online for new customers and always offering discounts, you may be wondering why you’re not making more money. The answer may be simple: you’re not pricing your services correctly.

Many salon owners underestimate the true cost of providing their services. They factor in the cost of products and supplies, but they often forget to include other important costs, such as labour, rent, utilities, marketing and the list goes on. As a result, they end up undercharging for their services and losing money on every client.

It is time for you to take control of your business and start working smarter and not harder

If you’re not making a profit, it’s time to take a closer look at your pricing strategy. Here are a few tips:

  • Calculate your true cost of doing business. This includes all of your fixed and variable costs. Fixed costs are those that don’t change from month to month, such as rent and mortgage. Variable costs are those that fluctuate based on your activity level, such as product costs and labour costs.
  • Factor in a profit margin. Once you know your true cost of doing business, you need to add a profit margin to your prices. This is the amount of money you want to make on each service.
  • Price your services competitively. You want to price your services competitively, but you also don’t want to undervalue yourself. Research what other salons in your area are charging for similar services. You may also want to consider offering tiered pricing for different levels of experience or seniority.

It’s also important to remember that you don’t have to offer discounts all the time.

In fact, offering too many discounts can actually devalue your brand and make it difficult to raise your prices in the future. Instead, focus on offering your clients value for their money. This could mean offering free consultations, loyalty programs, or package deals.

If you’re not sure how to price your services correctly, this is where you NEED Insightful Sums.

Our software has been designed for the Hair and Beauty Industry, to quickly and easily calculate if you are making a profit on your services.

You do not need to be a mathematician to do this. You simply input your information and Insightful Sums does the hard work for you.

By investing as little as 1 hour, you can have all the insights you need to turn your salon from a job to a business.

If you want to make more money, you need to price your services correctly. This means calculating your true cost of doing business and adding a profit margin. It also means pricing your services competitively and offering value for your clients’ money.

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