3 Steps to Tackling Pricing in Your Hair Salon

First of all lets all grab a glass of wine and take a breath.

You are not alone. We have all been though this and there has to be a better way to set pricing in your salon right? RIGHT.

I outlined 3 steps to tackling the pesky issue of pricing in your salon.

1) Figure out what system you would like to use.

There’s lots of models for you to choose from but I only talk about the main three that is common across the board. Let me clarify:

a) Junior, Intermediate and Senior Level System

In this system you have 3 levels in which you structure your pricing. In this model you would start with your base price for your junior stylists and add a minimum of $20 to your junior base price for your intermediates and another $20 to your intermediate price for your senior stylists. This system is fast and easy to implement and is a good place to start. Ideal for small teams as well!

b) Level System

In this system you will charge by level usually 1-5 each level may increase by lets say $10-$20 each level. This system allows a stylist to grow at his or her pace and is not limited by their experience but more reworded by their performance.

c) Hourly System

This system is brand new and will take some time to get used to. If you work for your self this is perfect for you charge by hour and stick to it!! If you have a commission salon with existing stylists figure out their total service dollars divide by amount of hours worked = their hourly Rate.

2). Now that you know what your system is, you now need to separate your parts from labour. For example if you prefer the level system and let’s say your level 1 charges $50 for a root touch then that is their labour price. You then add the parts (color) on top to get the final price.

Labour + Parts = Price

3). You are going to get busy as the salon owner so set a calendar reminder every 3 months to look over each stylist and your own pricing and check if its time for an increase in pricing.

Time for increase? If you or your stylist is booked 85% for the past 3 months increase your pricing 5%-10%

Now you have your 3 steps to pricing!

If you think about it, your color services are variable services. So by separating the parts from labour you will never have to question your labour pricing again. For your labour or BASE price it will increase based off booking performance.

You are now set to having a kick ass year one quarter at a time.

Go get it!



Have More Questions About Pricing? Chat with Us!

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Caila Ellerman