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Undercharging for Your Services

Are You Undercharging for Your Services?

As a business owner, you will know just how much time, sweat and tears go into starting something of your own. Therefore, it’s essential that you price your products and services appropriately. You need to ensure that you are charging clients the right amount for you to be able to make a successful living.

Let’s look at it this way, your loyal customers aren’t coming to you because of low pricing. They will come to you for the excellent service and treatments that you offer. Generally speaking, most people aren’t sensitive to a slight change in price, so if you are struggling to retain clients it may be worth taking a closer look at the service you are providing than the prices. Lowering price will not keep clients loyal. Service and treatment quality will.

The Battle of Beauty Businesses

Like most industry-specific businesses, salons are renowned for competing when it comes to what’s offered and at what cost. Don’t get drawn into a price war with the competition, this is quite simply a race to the bottom. Concentrate on providing a top class service that people talk about and come back wanting more of. Build your business by recommendation, make sure the experience your clients receive is one they will want to tell all their friends about. Once you have built your business to this point, if you were to charge a little more for the excellent services that you offer, you could make your client list more exclusive, giving you more time to focus on other parts of the business.

Providing the Complete Package

From the moment a customer walks through your door, they are experiencing a service. When they are greeted with a confident and competent professional who makes them feel comfortable and knows what they are talking about, they will feel like they are receiving an excellent service. This too comes under the umbrella of what you are charging for.

By focussing on building up the services within your business, you won’t need to justify your prices. However, if you lack in any area when offering a complete package, cost-sensitive clients will go elsewhere to find cheaper services that are of lower quality.

How to Set Yourself Apart from the Competition

Offer specialist services – if you or your colleagues have the ability to offer a service that not many other salons in your area are doing, focus on selling it. Everyone wants something that isn’t readily available, and because not many other places offer it, you can charge more for it. Take a look at SkinBase Collagen Lift if you don’t have a standout treatment in your business yet.

Increase Prices Gradually

Review your prices annually – the cost of living is always changing, therefore, you should be reviewing your price list annually in order to see where you can make a bit more. It is better to increases your prices in small increments yearly than to leave it a few years and hike up the prices significantly.

And remember, an equal measure of quality, professionalism and approachability is what will allow you to charge more. Your clients want the whole package from the minute they step foot inside the door, so give it to them.


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