Working out cost per service rant

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JuicyLucy

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Judging by a few recent threads, when it comes to gel polish/UV colour coats, it would appear that lots of people on here do not understand how to work out cost per service. They assume that expensive brands cost loads more to use than cheap brands and they price their services to reflect this incorrect assumption. They incorrectly assume they are making the same amount (or more) as techs using expensive brands but charging sensible prices.

Clearly your initial layout for a cheap brand is going to be less, but the difference between cost per service is such a small amount that its not worth worrying about. Certainly the brand you use should have hardly any affect how much you charge clients.

Using round figures as an example and not actual prices:

Say, "Brand X" costs £20 for each 15ml bottle of topcoat, basecoat and colour coat.

Say, "Brand Y" costs £5 again for each 15ml bottle of topcoat, basecoat and colour coat (a quarter of the price of "Brand X").

Most brands that do 15ml bottles say you can do around 100 sets from a bottle of basecoat, 50 sets from a bottle of colour and 80 from topcoat.

So...
"Brand X" would cost 85p in basic product costs
"Brand Y" would cost 21p in basic product costs
a difference of only 64p per set.

Your prep and finishing product costs are the same for both brands.
Your overhead costs are the same for both brands.
If you are mobile, your traveling costs are the same for both brands.
Your time used is the same for both brands.

So techs charging a low amount because they are using cheap products are actually only saving 64p a set. However, they are charging their clients (on average) between £5-£10 less than techs using premium brands.

What these techs are actually doing is giving their time away cheaply and not making a decent profit or living. Or, if they are charging the correct amount, they are cheating their clients by unnecessarily using a cheap brand.

You are deluding yourself if you think you are saving money or making more profit by buying and using cheap non professional products.
 
Gosh....well done you:Love:
 
I never intended to ever use cheaper products, I want the best from the word go. And this is only after studying for 2 months!

This thread cements that fact 150%!!

Very clear and concise working out to show it in laments terms!

Well said.

X
X
 
Judging by a few recent threads, when it comes to gel polish/UV colour coats, it would appear that lots of people on here do not understand how to work out cost per service. They assume that expensive brands cost loads more to use than cheap brands and they price their services to reflect this incorrect assumption. They incorrectly assume they are making the same amount (or more) as techs using expensive brands but charging sensible prices.

Clearly your initial layout for a cheap brand is going to be less, but the difference between cost per service is such a small amount that its not worth worrying about. Certainly the brand you use should have hardly any affect how much you charge clients.

Using round figures as an example and not actual prices:

Say, "Brand X" costs £20 for each 15ml bottle of topcoat, basecoat and colour coat.

Say, "Brand Y" costs £5 again for each 15ml bottle of topcoat, basecoat and colour coat (a quarter of the price of "Brand X").

Most brands that do 15ml bottles say you can do around 100 sets from a bottle of basecoat, 50 sets from a bottle of colour and 80 from topcoat.

So...
"Brand X" would cost 85p in basic product costs
"Brand Y" would cost 21p in basic product costs
a difference of only 64p per set.

Your prep and finishing product costs are the same for both brands.
Your overhead costs are the same for both brands.
If you are mobile, your traveling costs are the same for both brands.
Your time used is the same for both brands.

So techs charging a low amount because they are using cheap products are actually only saving 64p a set. However, they are charging their clients (on average) between £5-£10 less than techs using premium brands.

What these techs are actually doing is giving their time away cheaply and not making a decent profit or living. Or, if they are charging the correct amount, they are cheating their clients by unnecessarily using a cheap brand.

You are deluding yourself if you think you are saving money or making more profit by buying and using cheap non professional products.

So true! I dont think many people see it like this or work it out like this!
Very well put! Xxxx
 
So true JuicyLucy ... I have posted here for ten years that the difference in price for a full set of enhancements, between the best brand and the brands at the low end, is about 50 pence!! So why not just use the best?

People using cheap products and charging stupid prices are not making a penny. The thing is that Most don't bother to think ... They just charge the same, or less, as someone else up the road who hasn't thought either or can't work it out for themselves. Which in turn is why they are here today and gone tomorrow.

They think they are being clever and all they do is shoot themselves in the foot!

Great post. Maybe some will get the message.
 
Brilliant post! Well written xx
 
Fab post and so true. Thanks x
 
Love it.... Well said!
 
Judging by a few recent threads, when it comes to gel polish/UV colour coats, it would appear that lots of people on here do not understand how to work out cost per service. They assume that expensive brands cost loads more to use than cheap brands and they price their services to reflect this incorrect assumption. They incorrectly assume they are making the same amount (or more) as techs using expensive brands but charging sensible prices.

Clearly your initial layout for a cheap brand is going to be less, but the difference between cost per service is such a small amount that its not worth worrying about. Certainly the brand you use should have hardly any affect how much you charge clients.

Using round figures as an example and not actual prices:

Say, "Brand X" costs £20 for each 15ml bottle of topcoat, basecoat and colour coat.

Say, "Brand Y" costs £5 again for each 15ml bottle of topcoat, basecoat and colour coat (a quarter of the price of "Brand X").

Most brands that do 15ml bottles say you can do around 100 sets from a bottle of basecoat, 50 sets from a bottle of colour and 80 from topcoat.

So...
"Brand X" would cost 85p in basic product costs
"Brand Y" would cost 21p in basic product costs
a difference of only 64p per set.

Your prep and finishing product costs are the same for both brands.
Your overhead costs are the same for both brands.
If you are mobile, your traveling costs are the same for both brands.
Your time used is the same for both brands.

So techs charging a low amount because they are using cheap products are actually only saving 64p a set. However, they are charging their clients (on average) between £5-£10 less than techs using premium brands.

What these techs are actually doing is giving their time away cheaply and not making a decent profit or living. Or, if they are charging the correct amount, they are cheating their clients by unnecessarily using a cheap brand.

You are deluding yourself if you think you are saving money or making more profit by buying and using cheap non professional products.

Great post!

They may also be invalidating their insurance by using such brands too.
 
Totally agree - great post! x


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Great post!

They may also be invalidating their insurance by using such brands too.

Just what I was going to say.

I put a post on biosculpture gel group asking if anyone knew how many sets of nails you get from a 4.5 g pot, and I got no answers. I looked back at my clients record sheets, and I reckon its surprisingly 10 to 15 sets ! Depending now big nail plates are of course..

When I first set up I calculated the cost of a set of nails using products, tools overheads etc, but didn't include my time.

Thanks juicy Lucy for a brilliant post :)
 
Great post!

They may also be invalidating their insurance by using such brands too.

Do you think the type of person who uses this BS cares about carrying insurance? :biggrin: I think not. They probably won't read this thread either ... They know better don't you know?
 
Your post made me smile ... !!! ...

Well explained ....

I'm wondering how many therapists who charge very low prices will think about what they charge and realise they are working for less than a minimum wage once they've taken all the overheads away ... Products,electric/petrol,washing towels,insurance ... etc ...

.... If they were offered a job for £4 PH Or even less ... would they take it ??? ...



Sent from my iPhone using SalonGeek app
 
Didn't i read on the CND Website , on their cost per service,that shellac only costs something mad like £xx.xx!!! HAPPY DAYS!! :biggrin:
 
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And while on the subject, if say, I was charging £20 for a set of nails, overlay, for a certain famous brand, and the girl down the road is charging £25 , overlay for the exact famous brand, wouldn't people come to me more ? So I make more money than her..

Just throwing this one in to see the response !:biggrin:
 
Hope your clients are not reading this, Louise!
 
Oh listen carefully..... I think someone, reading this somewhere just heard the penny drop...... Or even 64 of them. Lol.
 
Hope your clients are not reading this, Louise!

You'll have to excuse my thickness..ive been up since five with the twins so i am having a very blonde day..ha ha..i can hear my phone ringing ringing
 

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