TPTW - Why do so many techs under-price their work?

SalonGeek

Help Support SalonGeek:

This site may earn a commission from merchant affiliate links, including eBay, Amazon, and others.

ValencianNails

Positivity rules!
Joined
Aug 31, 2004
Messages
18,507
Reaction score
816
Location
Valencia, España
TPTW (click the link to learn more :wink2:)

We see it time and time again on the forums, technicians under-pricing their work when they really should be charging more.

Why does this happen?

Is it a confidence thing? (ie, some thinking their work isn't good enough to charge more)

Is it due to local area prices?

Is it because they feel they would lose clients if they priced their services as they should do?
...when actually, they wouldn't lose many clients and be earning the same or more money for doing less work!

:green:
 
Oh Sandi, we have had many conversations about this LOL.

Sometimes I think it is a confidence thing - people may be unconfident people and think, why would people want to pay for something I have done!

I also believe it is a lack of business sense and also a lack of consumer awareness - in my experience, consumers do not seem to appreciate that there are different standards and qualities of nails, waxing or whatever you may be doing - why pay £35 for a set of nails when I can get "the same thing" down the road for £20.

Some people will think that they have to cut their prices to match the one down the road, when sometimes people may actually think oh the £35 set may be better.

This is such a major problem for many and I will read this with avid interest.
 
well this is my own personal take on this .,.. and beleive me i have charged everything through the years , lol

i honestly thought if i charged like £ 10 when i was first starting it wuld get people through the door so at least it covered costs and i got better ...
then after a while i upped it to i think it was £18 as by this point i was not too bad i had gone on some more courses , my application was better etc
then after a few yrs i put it up again to i think 25 as it was inline with everyone else but it was the recession and biz slowed down to just a few clients and i had another baby :green:
since then i stayed at 25 because i felt comfortable , i would have loved to charge more but there were salons near me offering nails at £8 and stupid stuff like that ... it made me cringe but i had done te same thing years before

as for confidence , i honestly think nail clients are by far the worst ,:lol: they pick , they pull , they dont listen , then they blame you !!
i did a set of minx the other day on my boss (whos a nitemare ) , she was scrubbing the veggies with her fingers !! (no gloves ) and the minx lifted so she ripped the whole set off :eek: its this sort of client that has drove me to going back in to hair as it just pees me off no one seems to respect their nails or the hard work it took for you to apply them
just my own personal take on things x
 
Yes you often read "the client said"

Clients spout rubbish at times. They have no idea what things cost to produce. Do you think Dior/ chloe/ Gucci give a toss what you think their handbags etc should cost?
Only Primark allows YOU the customer, to think you are in control by giving you the cheapest of the cheap.
If I gave you the choice between a primark bag, or a gucci bag, which would you have? and why?
This lesson in retail techniques should give a little insight as to why you should NEVER be the cheapest.
Staying with luxury brands, notice that apart from the Jan sale, they never discount, this is because they believe that discounting destroys branding.
I do despair at people on here discussing offers/discounts etc to try and drive business. The end result is that you work twice as hard for even less money than usual. In the service sector, we cannot use economies of scale needed to make discounting work. Only by growing a good reputation can you grow a good clientele.
 
A lot of techs/hairdressers etc are intimidated by clients and by others charging too little. It is the hardest thing in the world, when you are still building a business, to stick to your price and tell the client to go to the other cheaper salon if that is what they want.

With hindsight and a thriving business it is easy to see this but if you are a single mum trying to get going you cannot feed your family with what will come if you stick to your guns. :green:
 
A lot of techs/hairdressers etc are intimidated by clients and by others charging too little. It is the hardest thing in the world, when you are still building a business, to stick to your price and tell the client to go to the other cheaper salon if that is what they want.

With hindsight and a thriving business it is easy to see this but if you are a single mum trying to get going you cannot feed your family with what will come if you stick to your guns. :green:

I soooo agree!! :hug:

I think it's a combination of some/all these factors, plus the price/speed factor of nss? It's ok to say that a decent tech can do without the type of client who wants 'Quick/cheap,' but people Do want what they perceive as a bargain.

A lot Do seem to grasp that having their nails done at certain budget type establishments can hurt and damage their nails but, disappointingly, a lot go back for more. Price driven!! How can good techs compete and win over a recession ravaged potential client base, in a cash starved and largely industry uneducated climate? :grr:

I think that good techs definitely aren't getting the financial rewards their skills deserve, in general, at least in my area. I dont see anything much beyond the basic tip and overlay and a french is usually a white tip to save time. Most people I know expect to pay no more than £25 <and often less> for a new set, no matter what it is and be in the chair not much over an hour to get it. Doesn't offer too much scope, does it?!? They also expect to pay considerably less for maintenance.

These are general observations and there will always be exceptions, but the ignorance and expectations of so may would be wearers of nail enhancements of my acquaintance testify to the fact that it must be an extremely difficult and frustrating goal to earn what you're skills are actually worth, especially when you are just starting out! :hug:
 
I agree so much with Dawn on this one but what sets Dawn and others apart is they think LONG term and understand strategy and they PLAN for the future and can see the big picture.

Unfortunately so many enter the world of nails with no business acumen at all. DOING NAILS ... Hmm seems so easy doesn't it? Look at what the person down the road is doing and .. Hey .. I'll do it cheaper! :rolleyes:

Now if someone has never been in business then there is no reason they should have any business acumen, but for goodness sakes, if you are contemplating starting a business then go and learn something about business first; Find a mentor to help you, it will put you in a better position no matter what you end up doing. First things first.
 
For me, its a timing issue. I know I'll get more confidence in time, but right now I feel I should be charging less than the salon down the road due to timings.

Having said that, I've just raised my prices, from £20 full set £15 rebalance, to £25 new set £20 rebalance. The few clients I have, have accepted that.

Local NSS (are charging £27 for rebalances, local salon are charging £35 full set, £25 rebalance.

Eventually I'll charge £30 full set, £25 rebalance, but that will be in the future, when I have my timings up. Hopefully doing the cnd l&p conversion will help me with that ;)

I'm going to be doing manicures and shellac soon, haven't sorted a price for that yet.

I'd rather not do something that undersell myself. Clients, don't get 'the wonder that is me' for nothing lolol.

I've no intention of competing with the NSS salon, they don't even factor into the equation, if people want crap, let them go there. As for the local salon, I go there myself for other treatments, but that doesn't come into it either really. I'll decide what I charge (obviously, theres a ceiling limit there) but so far so good.

one other thing, no one that I've found in the area have even heard of shellac, let alone offer it, and nobody, but nobody offers glitter tips ;)

It's only my timings, not my confidence in my product thats holding me back currently.

(blimey, can't I rabbit!)
 
I can guarantee that when those clients that are demanding cheap cheap cheap, get a few quid in their pockets they will be off to the "top" hairdressers and techs like rats out of a trap. They percieve the more rationally priced techs/hairdressers as "superior", whether they are or not.
Nicky Clarke charges £250 a haircut. I charge £50 a haircut. Is Nicky a technically superior hairdresser? No (he is a pal and won't mind me saying that!). He has got the balls to charge what he charges and he has a great reputation.
Some of his clients have traded down to cheaper hairdressers in this recession. I can guarantee that a sniff of a pay rise or a promotion will have them sheepishly returning to his lovely salon so they can once again relax in his capable hands. In their eyes, I am no substitute despite being as good.
When you work really cheap, you cannot compete with the success stories in your chosen field. Clients percieve you as second rate, and a temporary "make do" till the good times roll, as they can return to their "true" professionals
 
For me, its a timing issue. I know I'll get more confidence in time, but right now I feel I should be charging less than the salon down the road due to timings.

Having said that, I've just raised my prices, from £20 full set £15 rebalance, to £25 new set £20 rebalance. The few clients I have, have accepted that.

Local NSS (are charging £27 for rebalances, local salon are charging £35 full set, £25 rebalance.

Eventually I'll charge £30 full set, £25 rebalance, but that will be in the future, when I have my timings up. Hopefully doing the cnd l&p conversion will help me with that ;)

I'm going to be doing manicures and shellac soon, haven't sorted a price for that yet.

I'd rather not do something that undersell myself. Clients, don't get 'the wonder that is me' for nothing lolol.

I've no intention of competing with the NSS salon, they don't even factor into the equation, if people want crap, let them go there. As for the local salon, I go there myself for other treatments, but that doesn't come into it either really. I'll decide what I charge (obviously, theres a ceiling limit there) but so far so good.

one other thing, no one that I've found in the area have even heard of shellac, let alone offer it, and nobody, but nobody offers glitter tips ;)

It's only my timings, not my confidence in my product thats holding me back currently.

(blimey, can't I rabbit!)


Hmmmm ... yes, agree with the glitter tips/shellac, too! I got my toes minxed for £15 a year ago at a cnd salon local to me. :eek: I also know a very experienced tech in a larger town in my county who will only apply any colour/glitter tips on special request, because she can't make them pay to do! :hug:

Would love to hear from people who've gone straight for the financial jugular and succeeded in getting what good sets with good products are actually worth, irrespective of their local competitors. :)
 
We struggle in our area to get the price that I feel we should charge for nails. Its been a constant irritation of mine to charge what i do. I have charged what I believe they are worth and business died on the nail side... its so fustrating. I almost want to visit every salon in my area and beg them to think about setting the prices higher.( of course i know this wouldnt work).

So I charge as much as I can and suck it up (for now). But, I need to charge more to make it worthwhile. its a catch 22.
 
I work in a very reputable salon in a very nice beach community in California. I find myself undercharging ALL THE TIME! I don't know why I do this! I guess it might be a self confidence thing and fear that the client will go somewhere else. I charge half my clients $25-$35 for a fill (they were from my old salon that charged that) and I charge all the new clients from this salon $45-$55 for a fill! I want to start charging my old clients more but I am so afraid! I do great work and I should charge accordingly but like everyone else have mentioned it's hard!
 
We struggle in our area to get the price that I feel we should charge for nails. Its been a constant irritation of mine to charge what i do. I have charged what I believe they are worth and business died on the nail side... its so fustrating. I almost want to visit every salon in my area and beg them to think about setting the prices higher.( of course i know this wouldnt work).

So I charge as much as I can and suck it up (for now). But, I need to charge more to make it worthwhile. its a catch 22.

Then charge just a little more than everyone else and find your USP. It can be that you are more stylish, more high fashion, more exquisite on your classic work,or more funky.
it mostly comes down to confidence.

If I am trimming the bottom of your hair, it's fifty quid. You could get it done for a fiver at a local college. Why do people choose to pay me fifty quid? It's not my adverts, my facebook page, my salon wallpaper, or the price of my scissors.
Analyse it, think about how you chose your hairdresser, and apply that knowledge to your nail business.
 
Then charge just a little more than everyone else and find your USP. It can be that you are more stylish, more high fashion, more exquisite on your classic work,or more funky.
it mostly comes down to confidence.

If I am trimming the bottom of your hair, it's fifty quid. You could get it done for a fiver at a local college. Why do people choose to pay me fifty quid? It's not my adverts, my facebook page, my salon wallpaper, or the price of my scissors.
Analyse it, think about how you chose your hairdresser, and apply that knowledge to your nail business.


Right, I'm thinking about how I chose my hairdresser! It was two days before Christmas a few years ago and I arrived at the door of mine at the time, appointment made, only to find it shut and a notice telling me they'd suddenly ceased trading! :eek:

I jumped back into my car desperately hoping to find someone who could sort my roots out for the festivities and worked my way through a few salons until I found a fairly newly opened one with a slot. They were busy, but shoe horned me in! I was sooooo damn grateful!! :lol:

I have stayed with them ever since on a few counts. I like the stylist, we always have a good natter, have a few things in common, she's reliable, she's better than my previous stylist and takes more time and care over what she does, she isn't stingy with her styling products <unlike some others I've been to> and she's always ready with a cuppa. To cap it all, she's a bit cheaper than a lot of her competitors, although I didn't know that when I threw my roots on her mercies that particular Christmas time.

In an attempt to analyse that little lot, I'd say I 'Chose' her by chance. I wouldn't pay her £50 for a trim, though! :eek::hug:
 
we are £5 more expensive than the other salon in the street and our usp is our guarantee. 5 days.

but yes indigo, all good points and all very valid. Do you what I think? really think? people dont care, dont care that my nails are more beautiful than the local nss salon. its just down to cash, minimum wage rules our area and jobs are seasonal. so if they can save the money on their nails, they will.

thats what i really think.
 
Just after I qualified I advertised at £10 a set expecting to get everyone through the door & I didn't, I was so confused! But now, If I see a salon or technician charging low prices I don't think wow lets save some cash I think oh my gosh what's the reason behind that then I wonder.

Just before xmas I was charging £18 per set as they still take me a long time to do a set, I've now put my prices upto £20 per set & hoping people will still come to me, Even though the majority of my clients said 'NO don't worry about it' when I said I won't be a moment i'll get you some change.

If i'm honest I don't know what I should be charging :/ Should I increase my prices everytime I gain another qualification in nails after a bit of practice?
 
As I said earlier it is hard to turn business away if you really need the money. I know when I started out I would lose sleep over this but was able not to fall into the trap of being dragged down by the techs who did not charge the going rate and who would only be around for a short time because of it!

Everyone starts their businesses differently, some in salons, some home salons and some mobile. Essential thing is to do your homework and charge the going rate for your area but also your ability. As long as clients understand that your prices will rise if you are new to the industry then all should be well.

I hate people looking for cheap deals! :green:
 
I think the main reason that this happens is that therapists tend to believe that their prices have to be the same as the other salons in their area. WRONG!

I know for a fact that you will get what you charge BUT......and it's a big but......you have to back up your prices with skill. You can't just say that you're the best in town when in fact you're not.

Another reason some people charge less is that they think they will attract more people, which is true. However, those clients will not be looking for quality, just a bargain. Nothing wrong with that as we all go with what we can afford, but I think you need to really have a think about what gap in the market you want to fill.
 
Due to ill health I had to stop work and any idea of getting back to my passion, but resently I've seen some improvment in my pain levels so fingers crossed for this year.
A friend of my daughter was visiting and her nails shocked me. No appex, thick, and you could see a yellow line where the tip joined the free edge, no idea what that was:eek: She paid £40 for these nails in an area that is filled with nail bars charging £20. I looked at those and thought why did I flinch at the thought of charging £25 my nails are way better then that!
Partly its social conditioning, you can only take so many chavs screeching, HOW MUCH !!! down the phone at you before you start to believe you are over charging and if the paying clients are not rolling through the door, the two things together will make you re-think your prices.
But the biggest thing, also social conditioning is our inate cring factor. Fact the vast majority of people don't like to make a fuss and for some reason we see selling our own work as making a fuss. Work on a fruit and veg stall and we've got no problems selling a pound of apples for the price stated, but something we've made? Different story, and we're not alone, how many wood turners turning out beautiful hand carved walking sticks actually include the man hours at even the minimum wage in the end sale price?
And yet we'll pay £300 for a wedding cake that costs £60 when the lable says birthday cake.
In short, we need to stop cringing, stop being appologetic for the work we do, but we also need people to see that what we do is better then the nail bar down the road, people will always pay for better, Persianista proves that every day she opens her salons.
 
I wouldn't pay her £50 for a trim, though! :eek::hug:
Whether you are taking a couple of centimetres off or a couple of inches off, it still takes the same amount of time.
Time is what i charge for. I worked out how much i wanted per hour and then set my prices.
I work my treatment prices out at somewhere between £40 and £75 an hour. I know that sounds a lot but I'm not constantly doing treatments. I have paperwork and stuff to do so when I do do treatments then it needs to be worth my while.
I am more expensive than some salons for some treatments and cheaper for others.
I charge £12.50 for spray tans for example. Now i know some of you think that's cheap but i can do 4-6 spray tans an hour (and frequently do), and that gives me the hourly rate that i want.
Now i know i could charge more as everyone loves my tans. I've lost count of the amount of times that my customers have gone somewhere else because they couldn't get in with me and have not been happy with the tans they've had elsewhere that have been double the price!
So i don't think i under-price my work. I'm trying to steer people away from sun-beds and offering them tans at £12.50 works for me. I make a very good profit on that and have lots of happy clients.
I also don't think that you get a better service the more expensive it is.
I think I've found a happy medium.
I get my hourly rate and my clients get a professional friendly service which is the main reason they come back.
 

Latest posts

Back
Top