Hey CurlFriend! Service pricing varies amongst salons. Each salon/suite owner is free to price their services to meet their individual business and personal goals. The CurlSpa's service prices are transparent at scheduling and remain consistent throughout the year. Price increases are always announced ahead of time with the understanding that some clients will choose not to continue on due to this price increase.
This is a big reason stylists do not raise their prices to keep up with inflation. They are afraid of losing clients. Increasing their prices is how independent service providers, like myself get a raise and a lot of clients don't understand how this works.
In 2020 when everything shut down I was able to get a handle on my money with the help of a free financial counselor. This experience allowed me to see exactly how much money I needed to make to reach my business and personal goals. I also came to the understanding that MOST people, like myself make enough money they simply aren't managing it well.
In this article we will walk through how pricing is calculated at The CurlSpa. I believe that having this information available will help you understand when price increases happen why they are happening. Not everyone is comfortable with money or talking about money. I am very comfortable with both and this is also how I help other independent stylist like myself understand their own finances and set realistic financial goals
Step 1: Personal Budget
Services at The CurlSpa are priced by time and since I am the only one performing the services I first take my personal budget into consideration and figure out how much money I need to be paying myself.
If I would like to pay myself $40,000 a year, work 48 weeks out of the year, 4 days per week (24 hours) leaving 4 weeks of time off when I need it this is the equation:
$40,000.00/48 weeks = $833.33/week
Now what you should keep in mind is this number does not account for ANY business expenses. Right now we are simply calculating how much I need to charge an hour in order to pay myself $40,000.00 a year.
So I need to make at least $834.00 a week to pay myself $40,000. But that still doesn't tell us how much a 1 hour service needs to cost.
$834/24 hours = $34.75/hour
Also this is the minimum amount I need to charge assuming I am 100% booked. Meaning every minute of that 24 hours has a client booked in it. FYI, it doesn't. So we are going to make this number $45 and say I'm 75% booked, which is industry standard BTW for a price increase.
Now if I didn't have to pay for salon rent, parking, internet, phone, this website, supplies, tools, equipment, continued education and all the other things it takes to run a beauty business you could absolutely pay me $45 for your 1 hour haircut, or your 1 hour pedicure, or your 1 hour facial. But keep in mind each of those services cost money to perform as well with all the products and disposables used. So we'll say $50 for a 1 hour service and all the disposables.
Haircolor product is $15/mix 1 mix = 50g of product and is calculated into the price of the color service.
$45 + $15 = $60 for 1 hour and 1 mix of color product.
Step 2: Fixed Business Expenses
Again it takes money to run this business let's say $3000.00 a month. That is $36,000.00 a year. The math formula is the exact same.
$36,000.00/48 weeks = $750/week
$750/24 hours = $31.25/hour
Step 3: Calculate Together
$50/hour to pay myself + $32/hour to pay the business = $82/hour
- 1 hour service = $82
- 1 hour color service = $92
- 1.5 hour service = $123
- 1.5 hour color service = $133
- 2 hour service = $164
- 2 hour color service = $174
Finally:
What you should understand is that I am not looking for sympathy I am providing clarity. While these numbers are not my exact numbers they are not far off.
I know what I need to do and I am working to progressively get my numbers and prices where they need to be. This is a delicate balancing act of observing:
- How booked I am
- How much repeat business is coming in
- & How much retail I am selling in the ONLINE STORE HINT HINT
FYI: purchasing your products from The CurlSpa also helps to keep service costs down. Clients should always try to buy their products from your stylist if they are able. This really helps the stylist out and they are the most qualified to explain to you how to use them appropriately.
This information is not just here for my client's that I perform services on. This article is also here to help my fellow salon suite owners navigate the math and find the confidence to stand by their prices. A gentle reminder that this is a strategic process and they shouldn't just be charging or increasing prices willy nilly.
If we can begin to shift the paradigm in our minds about money, be less emotional about money, have candid conversations about money it won't seem so taboo. Money is a tool we use to buy the things we need and want. It is not a definer of who you are unless you allow that.
I do not believe it is ever ok to tell someone they are charging too much. You simply may not value that service at that level. But it's not too much. Or maybe that level is out of your financial capacity right now. Let that motivate you to get your own budget together and save for the things you want instead of living so impulsively and expecting others to cater to your chaos.
The salon is generally a female space and as women I think it's time we do better by each other and be a little more considerate. The client stylist relationship like any relationship can be a beautiful thing when our values align. Stylists need to be transparent and honest about pricing and clients should make adjustments to their financial habits in order to continue working with a stylist they value.
In this documentary called Nailed It a young woman explores how the nail industry came to be what it is today. One of the biggest take aways for me was the cost of a full set in the 80's in comparison to what it is now. The beauty industry is a tiered layered cake that rotates with culture, community and commerce driving it. Leave a comment if you found this helpful.
Email me if you need help with your prices.