Founder of Boss Your Salon, Maddi Cook, speaks on price rises and what to do when the ‘maths ain’t mathing’.
On the whole, the hair and beauty industry doesn’t value itself enough and this is reflected in our prices. The industry naturally attracts lots of people pleasers. We are caring and we always put our clients first. But this can mean we don’t put our prices up for fear of losing clients.
But first and foremost – you need to be realistic. If the maths ain’t mathing, as the kids say, then something needs to change. If you are working full time and there’s no disposable income, you need to look at your numbers. Stylists often say, ‘I don’t do numbers.’ Remember, you work in formulas, angles, and elevation – you do!
According to my recent pricing survey, 80% of salon businesses set their prices based on what the salons around them are charging. Sound familiar? Everyone thinks their clients are going to leave them if they put their prices up! But we have to get our head out of the sand. I have a pricing calculator that tells people what they need to charge to make the income they want. It can be a shock to some.
In my experience, cuts tend to be priced correctly, but colour services are where hairdressers are losing money. After Covid we had to do one colour service at a time, and that’s when it really showed how badly we were pricing. Add to that the rise in the price of colour itself and other outings such as WIFI, booking systems, and music licenses, and any small increase can really eat into profit.
Another issue in our industry is ‘emotional discounting’. If I take my car to the mechanic, I don’t know their name, family situation or where they’re going on holiday. But we know everything about our clients. We know if someone in their family is unwell, if they’re struggling for money or are going through a bereavement. We often assume what money people do or don’t have. Giving away a free toner or bond builder means you are losing money fast. Those occasional discounts all add up.
There are two types of pricing – pick and mix vs all inclusive. I believe that pick and mix pricing disempowers you as an expert – when I stay at a hotel, I don’t need to know how much the pillows cost, what detergent was used, and how much the cleaner is. When you give a breakdown, it gives power to the client. They question whether they really need toner or bond builder. All inclusive pricing means there’s no negotiation, there’s one set price.
I’ve heard some people say “But I wouldn’t pay that” if my pricing calculator suggests charging £150 for a balayage. Don’t base your value on what you would pay for it. It’s what the client is willing to pay. It’s our job to do a good job and charge appropriately.
You deserve a price increase, if you’re the business owner, you’re the bookkeeper, HR department, copywriter – and you need paying for all those roles. It’s not a hobby. It’s hard enough when other people outside the industry don’t respect us. But why are we doing this from within? We have a skills shortage, and we need to show that hairdressing is a profitable and viable business in order to secure the next generation of hairdressers.