Getting your salon price list right

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When it comes to setting or reviewing a salon price list, it pays to remember that treatment and service prices should always be thought of in terms of value for money, above all else, says Salon Evolution director, Steven Gunnip. When a client feels truly pampered and wowed by their salon experience, and the result is exactly what they were looking for, they will gladly pay the money for a quality service time and time again. Creating the wow factor Providing value for money is all about creating the ‘wow factor’ for your clients. Very often, if a client thinks that the cost of a service is too expensive, it’s actually not the price that is the problem; it is that they don’t think they have received a service in line with what they have paid. It’s therefore really important to work on the client experience to ensure that every customer who pays a premium price receives an outstanding service to match. Examine every point of the client journey and think about the ways in which they can be improved. It’s often the little details that make the biggest difference and are therefore well worth investing in, taking a standard level of service to a premium, VIP experience that clients will be willing to pay the extra few pounds for, which will add up to thousands in additional revenue over time. Customer service is key; ensure that you are offering a thorough consultation, attending to your clients every need and providing a personalised service that exceeds their expectations. Don’t compete on price alone When creating price lists, don’t make the mistake of setting your prices too low with the aim of being cheapest salon in the area, but recognise that nobody gets away with pricing themselves out of the competition. If your service is exactly the same as the salon down the street, but is twice as expensive, clients are not likely to return to you. Set your price list so that it is competitive, but also showcases the salon’s qualities, stretching from a lower price bracket to a higher one, to cater for all areas of your target market and to highlight the differing areas of expertise that you offer. One of the best ways to research pricing structures is to gather information and price lists from other salons in the area, and then examine how your salon compares. Many factors can be taken into consideration here, from the standard and degree of training undertaken, the skill level and proficiency of salon staff, range of treatments and services on offer, and even general salon atmosphere. Most salons have websites where this information can be found, but it’s also a good idea to pop in and get a feel for the salon for yourself, or send mystery shoppers to other salons in the area. Keep an eye on the competition At Salon Evolution, we mystery shop our partner salons on an on-going basis, as it’s so important for them to have unbiased and constructive feedback. After visiting other salons, don’t be afraid to turn around and mystery shop your own salon to see how it compares. Salon owners have a perception of what their service should be like, and mystery shoppers can evaluate this and bring honest opinions as to whether this rings true. What are the differences and similarities between your salon and the competition? Examining the results can then indicate whether a pricing structure needs readjusting. Be honest and aim to up your game in areas that could be seen as lacking when set against salons of a similar standing. Increase service, don’t decrease prices I’m firmly of the belief that it is never a good idea to drop prices; instead, we advise salon owners to focus on increasing their service offerings to substantiate the prices they are charging. We strongly encourage raising prices once you've perfected the process of giving value for money. Increasing prices should really be called increasing your earning potential. There are many ways of increasing your earning potential without changing anything on the price list but the best thing you can do is introduce the little touches that make a client’s visit truly special and worth their money. It’s a good idea to conduct price list reviews annually in line with inflation, but also regularly review the price charged for individual stylists’ services. When stylists are at an 80 per cent capacity for a regular amount of time, they are in a good position to be promoted and command a higher fee. Ultimately, everything comes back to those three important words: value for money. A salon can charge any amount as long as its clients leave the salon happy and assured in the knowledge that the money they have spent is more than worthwhile for the service they have received. Salon Evolution is a business development and marketing agency founded by Steven Gunnip and James Hunt in 2007. The agency was created in response to a growing need in the Hair & Beauty industry for salons to better understand how to use their existing resources to generate more income.