Having a bad week-should I look at pricing?

[sa.davis]

We are a new salon and have not been open long, we were doing ok for the past few months and have started to get a few regulars. We do have a few hair and beauty places that mainly do hair and a bit of beauty on the side, they are very cheap and when I say cheap doing sienna x spray tans full body for £12.50, we are charging £20. These places are very popular round here and seem to be busy, most of the time. We use good products such as OPI, Dermalogica and Sienna X. This week has been really bad, the worst since we have opened, I have read other threads and am trying to keep positive as we are still very new and people are still finding us, but this week has got me down. I have been using the spare time to advertise and have really been going for it this week. One thing that has popped into my mind is my pricing, am I pricing myself out of the market, the main salon hair and beauty that I would compare myself too has similar prices, but I have been told by a passing client that came in for an offer that people in my area don't have money to spend. Thinking about it at the time I was sure she was wrong as the hair salon up the road for the top stylist charges from £50 for a men`s hair cut and he is always fully booked, he has been there a good few years. But after this week I am unsure, I am properly just low after this week. I don't want to be seen as a cheap salon but maybe there is no room for my type of salon here. Being new to all this I just want to see, how others have priced themselves, if they were in-between a cheap salon and a middle of the road salon, in the same area ?
Thanks in Advance xx

 

[Oasis]

This is an awkward one. Personally I wouldn't lower prices, firstly you'll have to redo your business plan to fit it. Secondly, the others will probably go even lower leaving you no where to go and you'll never be able to get them up to what you want again.
I think you should position yourself as a posh, high end salon. You already have high end brands, and then do offers like a bespoke head massage with all facials etc, these cost you nothing but add value for the client. Make you're clients feel extra special and make them want to come back. Some clients want cheap but most want special service and good products and these are the ones you need to aim at.
Hope this helps. Xxx

 

[squidgernetball]

Did you bring a client base with you, or did you open a salon and expect clients? I'm wondering why people would come to you. Do you do anything special or different?
I don't believe pricing is the answer. You can't charge silly money, but you're not, so look at your target market. Is it cheap nails n tans or specialised facials for ladies who lunch? What advertising have you done? So many salons just won't spend on advertising yet think Joe public should know they are there. We spent quite a bit on advertising after careful research and got 19 new clients.
There is a thread on here of ways to promote your business which may be worth a look, but most businesses struggle for the first 2 years.
I would look at ways to make your business different and to stand out without just looking at what you charge. As you have said, the hairdresser charges a lot, is fully booked but has been there some time. An established client base takes sometimes years to build, it won't happen overnight. I would look at your advertising. Just opening your salon is the start. Marketing it, getting and retaining clients and doing it over and over is the hard part!
Good luck

Vicki x

 

[BannerPenguin]

Yeah don't panic. Can take 2 years to become busy and steady.

 

[souz]

Couldnt agree more with oasis...

Set yourself apart from the rest, offer what they are not....not everyone wants cheap? What part of london are you in? As said offer things that add to treatments without you spending alot...make sure the salon looks high end to reflect the brands you have....maybe do a survey and ask what people are looking for so that you can find a niche in the market!

I dont see how its possible to offer sienna x for 12.50 knowing the price of a litre bottle!! I offer la tan and its far cheaper a bottle tan. Sienna x but i still couldnt do a tan for that!!

 

[JulieC]

Definitely don't lower your prices... Change your mindset & visualize your salon packed out. Keep doing this & saying to yourself what a fabulous busy salon you have. Clients love brilliant atmospheres in a salon, bubbly staff and a fun place also somewhere they can off load so be fantastic listeners engage fully with clients. Every time you get a negative thought quash it with 2 positive ones. You have to trust in yourself ...don't doubt your abilities or your salon xxx

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[virtues2011]

I would consider if my services/ staff and the look of my salon warranted the high end prices.

Don't lower your prices but consider an offer on a service for a limed time. If your not busy, some money is better than no money.

Do some market research, make a short questionnaire, ask 100 people what services they want to see . . And what pricing bracket they think its acceptable etc. Information like this is invaluable.

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[sa.davis]

Thank you for all your replies, this week has already been a much better week and we are only on Tuesday!
I took all you advice on board and looked at all my rooms, the shop front to make sure we are at the top of our game in overall, presentation. I also went over with the staff customer care and service and that we are selling the customer an experience rather than a bog standard high street treatment. We advertise LOADS ! I get one day off a week and use that time leafleting around local areas, that has work well for us, I have made sure we are on every search engine and all over online services. I think it was just a very bad week for us, maybe because of the children`s half term, people going away. I love the idea of picturing the salon full, and keeping positive, really good tool to keep moral up!

 

[squidgernetball]

It's great when geeks post problems or questions on here then actually respond to the advice, support and info given. Glad to hear things are picking up.

A long time ago a really good friend of mine told me to stop looking at a day or a week. She said I needed to look at the month which really helped. I also look at my quarters so compare the first quarter last year to the first quarter this year. This is great to help show you how far you have come. Sometimes it can get lost in the waxing of legs and the painting of nails x

 

[JulieC]

So pleased you are feeling more positive xxxx

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