Pricing issues

[Colour_Freak_91]

Hi SalonGeeks!
I’m currently searching for a bit of peace of mind...
I’m a new salon owner of only a few months but all I keep hearing is that my work is too expensive and frankly it’s getting on my nerves, as every client who leaves my hands rates me 5 stars on social media and really appears to love my work!
I’m a qualified level 4 colourist and blonding specialist, trained In Shwarzkopf, redken and also creative colouring.
I worked at a local salon for a short while but left because I was horrified by their product choices. I’m not a snob! I have my little hacks like anyone, but the other stylists were using box dyes. Live XXL
Then I tried another salon but the chair hire was extortionate!
Now I’m working for myself from my own small salon. It’s tip-top, gorgeous furniture, clean and light and in a lovely location with its own unshared carpark, offering high quality salon products...
Yet I am having so much trouble with my profit margins. Clients want the celebrity results for peanuts, but the dye itself is expensive. (I don’t want to switch because I’m trained in it and get my best results with what I know.)
And there’s the salon to run as well.
I have some loyal clients, but I’d really like to gain just a few more, I’m not greedy, I don’t need the whole of England or anything!
My current prices undercut the major salons by 20% sometimes 30%. And I run offers all of the time.
Is this just something I’m going to have to get used to?
Do I need to advertise elsewhere because the local clientele is simply too thrifty?
I’d be interested to hear if anyone has encountered this problem!
Thanks guys.

I’ve included some demo pics of my stuff so you can get an idea of what kind of work I do etc... x

 

[CFBS]

It's a difficult balance isn't it when starting up your own client base.
You want to attract new clients but you still need to make a profit.
Your premises and your skills sound excellent so now it's all about getting the word round about how great you are.

I'm guessing you've already done your sums to work out what you need to charge plus a profit margin to pay yourself?
It's always tempting to offer discounts when starting up to get new customers but if you offer too many you get the cheapskate clients that move around salons according to the cheap deals. These are the clients you don't want as they have no loyalty.

Why do you feel you have to be cheaper than the major Salons near you?
I'd say charge the same and then you have a little bit of margin to play with.

When you run a special offer (one at a time, not lots) give added value rather than a monetary discount. So add on something luxury to the service to make it different to the competition. This way you get the clients who look for a quality service rather than the bargain hunters.

I actually find that if I promote a package of services at a price roundabout the £55 mark, I get more bookings than if I offer a service for under £20.

There are lots of threads on salon geek about how and where to advertise, so have a read of these too.

 

[AcidPerm]

My last client told me I wasn’t charging enough.
She used to get her hair cut and colour done at Daniel Galvin in London so is used to paying their prices. I looked on the website and they are quite a bit more expensive than me. (Obviously)
I think you need to try promoting your services to the more affluent clients who like to be pampered and are willing to pay the price.

 

[FlawlessBeauty]

If you're already 20-30% cheaper than most salons it sounds like you are probably getting the bargain hunter clients who have no loyalty and are always looking to pay less.

Do you encourage your clients to rebook before they leave?

 

[Colour_Freak_91]

Thankyou for your replies everyone! So much great advice!

Flawless Beauty, I do yes. I have a loyalty card that eventually leads to a decent discount. They get a stamp after each service etc...

I think that my major issue tbh is being just a little bit too eager to please because I’m new to the salon biz, but in reality I need to find a client base that values me!

Since starting up, I’ve been overwhelmed by those around me, it’s hard to educate them about the industry, as they think I’m being elitist by wanting to run the salon as a more luxurious experience. It’s a lot of negativity over something that I feel like I am doing right which has caused me to doubt and undercut myself and feel undervalued.

I was literally laughed at by an educator in my early days at college because I wanted to learn creative colour so I quit after a couple of years and then later trained as a film/fashion colourist/stylist to the level 4. (I also did some freelance work for bands etc). I had to be on the road all of the time to actually get any work though and I became quickly ill and exhausted.
So I then tried salon work for a short while and hated that...

Now I’ve opened the salon for a more peaceful life, but obv the clientele has changed drastically from my days in fashion.
I guess I’m like a rabbit in the headlights atm!

I think you guys are 100% right. Thankyou for the advice, it’s really given me a new perspective!

 

[EssexFreelance]

I want clients who want cheaper than salon not people who what to flitter from one hair stylist to another.

I used to get the comments but as I’ve got busier I’ve attracted more people that think I’m too cheap so I’m going to increase my prices

 

[Hannsh]

I think you need to give yourself more time to establish your business as it’s still relatively early days. Be smart with the marketing - your USP is quality and results but most of all YOU! Make your qualification level, knowledge, passion and experience central in everything. It’s always harder to add value to services than it is to goods - skip the gimmicks and prompt the client to think where their money is going and why you charge what you do.

 

[jamiereid92]

Hi Colour Freak, im just about to open my own salon too, we should network so we can help each other as newbies!

From what it sounds like as an outsider you are contradicting yourself.. You want to give a luxury experience but cutting the price of all the other salons.

If i was in your situation i would up the prices, and run a special offer on a package, like cut colour and cut with a treatment or take home product for x amount of money. You dont need to discount it too much. If its an offer people think theyre getting better value anyway.

Good luck and send me a message of you want to get in touch [emoji4]