Yes, we know, it only seems like yesterday that the whole hairdressing industry was talking about prices and targets, but we need to talk about the importance of price increases as we near September.
Costs We hear some costs have risen, things like products and eco-towels have become more expensive for some. Now, these are all things outside of your control, but do you know what's in your control? The prices you charge for those wonderful hairdos that leave your salon doors.
Forget lifting all of your prices in one hit, this can really damage the retention of high spenders in your hair salon.
Consider lifting your prices twice a year, one way of doing this would be to increase cutting and styling prices in April and then lift Colour prices in September. This helps ease colour clients into higher bills, boosting retention and client satisfaction.
Keep An Eye On the Numbers Speak to your accountant or bookkeeper for those all-important percentages, including: 1. Wages vs turnover - Aim for 50% of your turnover and include your salary or dividends in the wages if you work on the shop floor as a stylist. 2. Product spend vs turnover - Aim for no more than 15% of turnover. 3. Net profit - Between 10% to 20% is common and will depend on the size of your business. If things are a little off, it could be your salon pricing affecting the numbers, and a review of your pricing should definitely be at the top of your priorities list, not to mention Stylist Performance.
If your accountant isn't able to help you here, it might be time to work with a proactive accountant that can not only produce a set of accounts at the end of the year but also help you understand what the numbers mean (not to mention making sure you're operating in the most tax-efficient way). Our recommendation is leading accountant Craig Spratt of LB Group.
Ask For Help
Salon prices - it's what we do!
MySalonmanager helps our members with their pricing and targets. If you need some help, pop us an email, and we'll get you booked in for a free consultation.
Contact us here https://www.mysalonmanager.co/