Running a business can be tricky – especially if you are not charging enough for your treatments. Consider the time it takes and the products used. Treatment costs need to be incorporated into your pricing to ensure a successful treatment for you – and your clients. Read on to find out how to ensure you’re not undervaluing your skincare treatments.
How To Ensure You’re Not Undervaluing Your Skincare Treatments
If you are pricing your treatments based on your area’s average cost – or by trying to undercut your competition – the chances are you are not charging enough to cover your businesses operating costs. If you want to avoid undervaluing your skincare treatments, refresh your price lists and start charging what you are worth. There are three key steps to consider:
Product Costs
What are the product costs for your treatment? Think about each of the products used in the treatment. For example the SkinBase Hydro incorporates a peel, a serum and skincare. Add up each of these to find your total product cost per treatment and base your pricing with this in mind. If you are unsure, contact your suppliers – they may be able to give you an average cost.
Wages
How much does the treatment cost in wages? Think about how much time the treatment takes out of your day. Make sure you include the time it takes to prepare for the treatment and clean up. How long does it take get your space ready for the next one? Is it a 30 minute treatment or an hour? Think about what your hourly wage is, and how much time the treatment is taking up. Include this in your costs.
Business Overheads
Calculate any overheads for the time you spend doing the treatment. Think about how many hours a week your business is open, and consider how much time the treatment takes. Make a note of your business outgoings, add it up, and divide it by the number of hours you work in a week. Then you can adjust the figure to get the overhead costs for the treatment. If you are on a SkinBase PAYG membership, don’t forget to consider the treatment cost. Make sure your pricing covers this along with product costs before you add on your profit margin.
Add up the totals from the 3 categories – treatment product costs, treatment wages and treatment overheads. This should give you a number to work with when pricing your treatment. Always remember to add on a profit margin.
Pricing
Don’t be afraid to raise your prices. Loyal clients will be happy to pay you what the treatment is worth. Any clients you lose due to price increases will leave room for those who will be happy to pay your prices. This will help you to future proof your business. Increasing your prices at the same time of year can help keep clients as happy as possible – they will expect the changes.
Become a SkinBase Therapist
If you want to offer advanced skin treatments and make your business more profitable, start your SkinBase membership today.
