Why is she so cheap? Salon up the road from me

[Lovebeauty14]

Well I'm feeling mega disgruntled. About to open my home salon, have just been checking my prices next to my nearest salon and she is so cheap! She's offering standard manicure at £14.50, Gelish for £15 and a standard Monu Facial for £28.
Well that's thrown water on my bonfire as I was planning to charge £17 for a mani, £20 for Shellac, and at least £30 for a standard Facial.
How can I compete with this? I have a home salon and she has a salon. Surely home salons should be cheaper?
Am I being greedy with my pricing? I just think my services are worth more, as I have paid a fortune on training, quality products and decorating my home salon to make it beautiful.
Thanks for any help you can offer.

 

[ADiva1]

I just think my services are worth more, as I have paid a fortune on training, quality products and decorating my home salon to make it beautiful.

You have already said why you should be more expensive than the Therapist down the road. Whilst it is good to check out your competitors you shouldn't wind yourself up about how much they charge. In fact you should feel sorry for her as she will have to work very hard to make a profit.

You charge accordingly for your services. When you charge cheaply, you will make a loss, be very tired and it just isnt the right way to run a business.

 

[Dream Nails]

There is a new salon opening by me offering white tips or glitter for £7.50. I wouldn't get out of bed for that.
I'm mobile and charge £22.
Vicki xx

 

[Lush-Lash]

There is a new salon opening by me offering white tips or glitter for £7.50. I wouldn't get out of bed for that.
I'm mobile and charge £22.
Vicki xx

Pahahahaha how ridiculous
£7.50 only just buys you bread & milk these days lol what silly people x

 

[Lovebeauty14]

That's ok then.
I'm charging as cheap as I can but when I saw her prices it was like a kick in the teeth.
Are my prices ok then? I'm not too cheap or too expensive? There is no way I'll lower my manicure to £14.50 or my Shellac to £15. I just feel it devalues it. I'm not spending an hour of my time using my expensive products and making hot drinks for anything less.
I just hope people come to me!!

 

[bombini]

Keep your prices as they are and good for you for not undercutting her.
I think that is the reason some salons charge silly prices, as every time a new business comes along they massively undercut their rivals and devalue a service at the same time.

 

[Belle Beauty]

You're prices sound about right to me and you have justified them to yourself too.

She obviously hasn't taken into account any skills that she uses when setting her prices...or maybe she doesn't have any, which may explain it?! :wink2:

 

[Dream Nails]

People who go to the cheapest will never be loyal to you. They just want the lowest price and will be on to the next low price next time they need doing.
Vicki xx

 

[blossom]

Dream Nails you're saying what I'm thinking lol

 

[Lovebeauty14]

Thankyou for your positive responses.
If I get anyone come to me moaning about my prices being higher I'll just explain very politely that they are paying for the best products and the best service. (Sounds like I'm blowing my trumpet but b*gger it!).
I'll also mention buy cheap, buy twice! Lol.

 

[Geminikelli]

Sorry to sound rude but I get bit fed up of cheap and rubbish saying. My salon is relatively cheap and I'm flat out all day long fri night were open to 11pm fully booked all my customers are loyal and word of mouth spreads far.

People always ask why I'm so cheap and I'm honest about it I only ever buy in bulk quantities for everything I'm a bargain hunter and will source my products at the best deal/price every time.

I am also extremely lucky to have stupidly cheap rent you could not rent a bedsit for less than I pay for my two floored salon.

I am a stickler for minimizing costs but still delivering a high quality service with good products.

I am also realistic to what people can afford and at a time when all I see is posts on here saying are you quiet and people agreeing I'm not!

I make a healthy profit each month too.

I have a good business head on me and work hard at running my salon efficiently.

In response to the op, do not worry everybody charges differently set your prices realistically to what you need to survive on and what level of profit you are looking to make without being greedy.

Spend your time sourcing, researching and working out how to run your business most cost effective then set your prices from that

 

[Cheshire_Gal]

Surely home salons should be cheaper?

Why? A treatment is worth what a treatment is worth. People use the 'im mobile' and 'im home based' as an excuse to charge cheaper prices, when in reality its just to poach clients.

 

[Belle Beauty]

Sorry to sound rude but I get bit fed up of cheap and rubbish saying. My salon is relatively cheap and I'm flat out all day long fri night were open to 11pm fully booked all my customers are loyal and word of mouth spreads far.

People always ask why I'm so cheap and I'm honest about it I only ever buy in bulk quantities for everything I'm a bargain hunter and will source my products at the best deal/price every time.

I am also extremely lucky to have stupidly cheap rent you could not rent a bedsit for less than I pay for my two floored salon.

I am a stickler for minimizing costs but still delivering a high quality service with good products.

I am also realistic to what people can afford and at a time when all I see is posts on here saying are you quiet and people agreeing I'm not!

I make a healthy profit each month too.

I have a good business head on me and work hard at running my salon efficiently.

In response to the op, do not worry everybody charges differently set your prices realistically to what you need to survive on and what level of profit you are looking to make without being greedy.

Spend your time sourcing, researching and working out how to run your business most cost effective then set your prices from that

Thank you for taking the time to give some balance to the argument.

Sadly, not all "cheap" salons are as conscientious as you. And as often happens, it is these places that gives a bad image to others.

 

[Lovebeauty14]

Why? A treatment is worth what a treatment is worth. People use the 'im mobile' and 'im home based' as an excuse to charge cheaper prices, when in reality its just to poach clients.

I was just thinking that a salon has more overheads than myself and assumed customers would expect me to price accordingly, taking that into consideration.

 

[Pinkbunny28]

I was just thinking that a salon has more overheads than myself and assumed customers would expect me to price accordingly, taking that into consideration.

People are not paying for the amount it cost you in products, they are paying for your skill and your time to use these products.

My friend mentioned I should charge less for shellac as I'm mobile and I shot her right down and said if I did that any special offers I do are going to leave me out of pocket! Work smarter, not harder. Charge your worth and once clients see how great your work is they will rebook regardless of cost x

 

[Beansy]

People are not paying for the amount it cost you in products, they are paying for your skill and your time to use these products.

x

The price that people are charged does include the cost of products, the value that you place on your skills, your times and the costs of delivering your service i.e heat, light, insurance, refreshments etc etc.

On this basis you would expect a mobile or home salon to be cheaper than a high street salon. Not because the service or quality is any different but simply because they have considerably fewer overheads. Obviously some people want to pay and enjoy a 'salon' experience whereas others want the convenience of a mobile therapist.

If you feel comfortable with your pricing structure, you've researched the market and believe that there is a demand for your service (at those prices) then go for it.
Lots of luck!

 

[essentia]

People are not paying for the amount it cost you in products, they are paying for your skill and your time to use these products.

My friend mentioned I should charge less for shellac as I'm mobile and I shot her right down and said if I did that any special offers I do are going to leave me out of pocket! Work smarter, not harder. Charge your worth and once clients see how great your work is they will rebook regardless of cost x

I agree with this - working from home/mobile is not necessarily 'cheap' either. If you use a room for treatments you should actually pay part of the mortgage/council tax etc if you are accounting properly as well as bills etc. Then there is the disruption to family life which sometimes occurs. I think this train of thought stems from the fact people think money goes straight into your back pocket if there are no obvious overheads to be seen.:wink2:

 

[HeadQuarters]

Want to charge more?? Don't baffle customers who can't understand technical stuff, sell them an experience, that's what determines effectiveness and price acceptance, start out high, then introductory offers of slightly less than others just to get people through the door, then when they are in you HAVE to tailor make it to each customers needs and make them come back for that same experience . 1 bit of advise for all of you iS buy a book, author is dan lok, it's called "lies salon owners believe and the truth that sets them free" it applies to any business just it's specific to ours, I was a bargain salon with 2 stations and that was it, in 18 months I'm now 6 stations, nails, tanning, beauty, relaxation, hypnotherapy, teeth whitening etc etc,

 

[Lovebeauty14]

Want to charge more?? Don't baffle customers who can't understand technical stuff, sell them an experience, that's what determines effectiveness and price acceptance, start out high, then introductory offers of slightly less than others just to get people through the door, then when they are in you HAVE to tailor make it to each customers needs and make them come back for that same experience . 1 bit of advise for all of you iS buy a book, author is dan lok, it's called "lies salon owners believe and the truth that sets them free" it applies to any business just it's specific to ours, I was a bargain salon with 2 stations and that was it, in 18 months I'm now 6 stations, nails, tanning, beauty, relaxation, hypnotherapy, teeth whitening etc etc,

Wow, might need to invest in it!

 

[ClaireL]

Just gotta say this - Love Beauty I LOVE your profile pic/avatar its effortlessly gorg! Everytime I see it makes me want hair and lashes like that!

Sorry totally off topic! x