13 Dec Five Tips- Setting Service Pricing
Who is your client demographic and what are you providing of value to this demographic?
Where is your business located and how do you price yourself appropriately?
When should you increase your pricing and why should your clients pay you more for you services?
Today I’m touching on my second topic to be discussed at my January 30th workshop here in Chicago, setting service pricing. This is such a touchy subject because many of us don’t like to talk about money. This is, however, one of the most important aspects of your business being successful. If your pricing is too high, you’ll struggle with attracting clients. If it’s too low, you’ll struggle with attracting the right clients who value your services.
Avoid Deal Sites and Deep Promotional Discounts
Deal sites are great for stocking stuffers. They’re maybe even great to try out a new restaurant. They are not great for services, not for the consumer nor for the business. Here’s why.
If you’re the business, most of these sites will charge you a heavy price for putting you in front of their audience. Before anyone even purchases a service from you, you’re most likely breaking even or worse, loosing money. The pitch? These dozens of new clients will get to give you a try and you’ll provide them the very best and retain them at your regular pricing. But that doesn’t happen. Why?
If you’re the client, you make the purchase based on price. You now know the baseline of value for this service, so receiving the same service in the future at a higher price takes away from the value even if the price is fair. Also, many other people purchased this deal. The service provider may seem rushed, overbooked, or put off by you giving their services a try. You may receive a decent service, but nothing set this service apart from any other. The value is gone. On to the next deal.
Structure Your Service Menu to include Maintenance Options
Because value is so very important, offer maintenance options to ensure your clients receive the best value. For my business, this means complimentary Bang and Neck Trims. I also offer Gloss Services between Color Services. These services may not make you a ton of dollars, but it will make you valuable to your clients. They will appreciate that you care so much about them that you’re willing to offer inexpensive options to keep them looking and feeling great. You also receive another interaction with them, another opportunity to WOW them.
Location, Location, Location
Where is your business located? Are you in a major city or a small town? This matters because you need to be balanced. My personal goal with pricing? I don’t want to be the most or least expensive. Right in the middle, structured specifically to fit my education and experience and my clients needs.
Set Your Pricing to Reflect your Education
Speaking of Education, when was the last time you attended advanced education? I could (and will) talk about the importance of this forever. In the Beauty Industry every thing is moving. Do not become stagnate or brush off the need for your business and skill set to continue moving as well. For me, this is one of my absolute favorite aspects of my business. I can pivot my direction as I see fit for my clientele. I constantly attend continuing education classes on trends, application of color, new hair cutting techniques, marketing, whatever I can get my hands on. I know as an Independent Beauty Professional, it can be challenging to find and attend these on your own. I can help with that!
Increase Your Pricing to Reflect your Experience
As your business grows, your pricing should reflect that growth. As your skill set should never become stagnate, your pricing needs to reflect that skill set. I know it can be uncomfortable but there are so many ways to appropriately increase your pricing and communicate your value to your clientele. Communication is key!
Do you find these tips helpful? These are just five of the many, many pricing tips I’ve shared with other Beauty Professionals who are looking to launch or grow their Independent Business. Want more? Sign up for my January 30th workshop here in Chicago or contact me to book a 30 minute complimentary consultation to see how I can help your business grow!