Having a business implies important management. Any detail can make a difference and make your business succeed among others. If you have a hairdressing center, we have the solution so that all your products have a fair price and define, also, the price of services so that your business is profitable. If you do not know how to set salon pricing, pay attention to the following article. On this occasion, we are talking about software that will allow you to calculate the best price for each service you offer in your center.
How to set salon pricing?
If you have a beauty center, a barbershop or a hairdresser, you must define the amounts of your products and services. To do this, you will have to calculate the fair price that will allow you to keep your customers and attract new ones through competitive rates. We recommend that you carry out the following steps:
Calculate the costs of your center
When we talk about costs, we talk about both fixed and variables. The fixed ones correspond to those that you pay each month and that have the same value, regardless of the sales that you have had that month. Among the fixed costs are renting the premises, your salary and that of the employees, public services (water, electricity …). On the other hand, you must calculate the variable costs that, as the word indicates, can increase or decrease depending on the services provided. Among them are the products used, such as shampoo or dye, or the commissions of your employees.
Calculate the expenses associated with your hairdressing salon
Once you have made the summary of your monthly costs, you must add all those expenses that also give value to your business. Here we talk about marketing or advertising campaigns, the use of consultancies or anything that you have not included in your fixed or variable expenses.
Calculate your sales
Once the expenses are calculated, you must calculate the income. Ask yourself the following question: how much do you plan to sell at your salon in a month? If you have been with your business for a few months, it will be easier to answer this question, since you can get an idea of how your business works. If you have just started with your hairdresser, we suggest you do some market research. This is about asking and investigating how much other centers similar to yours sell to be able to make an approximate forecast.
Determine the total unit cost for each product or service
Add the fixed and associated costs and divide the resulting amount by the total number of services you expect to sell in the same time period. With this forecast, you will get the fixed cost for each service. Then, add to the resulting value the variable costs that correspond to each service to obtain the total unit cost. This is the value that it costs you to offer a certain service in your hairdressing salon.
Once you have calculated the unit cost per service, it is time to see how much percentage you want to earn for each service offered. If you want prices to be attractive and competitive, you should not add a very high percentage, since, otherwise, you will not be able to compete with other hairdressing centers. We recommend that you research and evaluate competitive prices in order to determine if the unit cost is exceeded or below, and thus be able to set the profit percentage.
Adding the total unit cost and the percentage of profit, you will obtain the final price of your hairdresser’s products and services. Evaluate whether the final amount is very high or not, taking into account the retail prices of your direct competitors.
Obtaining a higher profit margin will be possible if you attract more customers and offer higher quality products and services.