Hi got another question about how much to charge. I recently put up my prices a bit. I had a client today who waned a full head of highlights, toner and shadow root and cut, so I said £70 is that to much as she didn’t get back to me? Thanks
How are you working out your pricing?
Generally, when starting out, start by fixing your hourly rate, working out how long the process will take and add on the product costs. You also have to take off an allowance for tax, insurances etc. If you just pluck figures from the air and try to undercut the competition, you’ll end up working for less than minimum wage.
Oh really, I had a look at pricing on the internet they were all different prices from £30 for full head highlights?? Which that is definitely very cheap, to £180 ish. I was only going on my stock as I will need bleach, 2 toners, foil, etc so I worked it out it would cost me about £30 and I would gain £40 profit. The problem is when I give a higher price they never get back to me so then I thought I’m over charging.
Don’t forget that you will have to pay tax, insurance, wear and tear on equipment and occasional training out of your profits so it’s not like you’re actually pocketing £40.
It’s very hard when starting out as you will get Deal hunters that just want the cheapest option and will constantly shop around or try to negotiate a lower price. They are not really interested in becoming a loyal client but you could offer them a discount on their next appt. if they refer a friend, or something similar.
I didn’t think of it that way, my liability insurance was only £90 for the year, not sure about the tax yet. I really don’t feel as bad now after realising all that thank you for that. Yes your definitely right about that, I had lots of clients say they shopped around decided to come to me as I was cheaper. I think I started off cheaper to gain the experience and become more confident which I have, iv learned so much on here, YouTube actually more than I did at college and I did 2 years! So I will take into account all what you have said. Thanks again
Think about how many weeks a year you want to work and how many hours a week Then add up all your expected costs - rent, electric, accountant, card machine, booking system, wifi, phone, water, commercial rubbish collection, uniform, advertising etc and then divide by the number of weeks in the year that you plan to work and then divide again by the number of hours you want to work. This gives you your costs per bookable hour and you add products cost to that plus your wages.
I've developing a business plan to reduce my client hours to 30 a week as I need time to run my business. To my horror my costs before products work out at £25 per hour. Eek. My plan to just see clients for 15 hours a week has been shelved!
Gosh kind of makes it not worth it lol. Ok I will work it all out. At the moment I work only 16 hrs a week but I think I need to work more don’t I. Thank you really appreciate all that info, I really had no idea! X