2,96,000/Month.īesides fixed costs, there are even variable costs which include all the expenses that vary every month. Now if we sum up these expenses, let’s assume the running expense for a mid-range Salon is Rs. 10,000 and staff salary is an average of Rs. 50,000 (negligible if own property), the electricity bill is around Rs. Some of the expenses that fall into this category include – rents, utilities, employee salary, marketing, maintenance, supplies, taxes, insurance, and other miscellaneous things.Ī mid-range salon with 1 manager, 7 staff, and 1 cleaning staff, gets an average of 500 bills/month. Every salon business has to take care of two kinds of costs – fixed and variable.Īs the name implies, fixed cost includes those expenses that are fixed for a month and are mandatory. To calculate the price of every salon service, it is important for a salon owner to understand how much it costs. As a salon owner, you make your pricing decisions based on the costs you are incurring every month. While watching your competitor’s pricing techniques is important, don’t consider it a bible. It does not just ensure your team does not undercharge but also helps you intimate clients about changing prices. Having hair salon softwareensures your clients are charged as per the prices set on your salon menu. For example, if you have a salon in the suburban area of a city, you cannot possibly charge like a salon that has its outlet in an upmarket area.Īnother point to keep in mind is not to undercharge for any reason. However, only take inspiration from them if their salon is on the same page as yours. This will definitely help you make professional price decisions. When you’re creating a salon pricing strategy, take a look at your competition and examine their menu too. There are no two thoughts about the fact that the salon business is a competitive market. Table of Contents:įactors that Influence a Salon Pricing Strategy This is mainly because their monthly costs may vary compared to yours, and there may be some other factors influencing their pricing too. When it comes to creating the right pricing model, don’t always look at your competitors or neighboring salons. However, once you calculate your running costs per month, determining to price isn’t as hard as it seems to be. How Salon SMS Marketing Can Be A Game-Changer For Your Salon Business?Ĭoming up with a price list might seem like an intimidating task at first. For example, if your prices are too high, customers might consider your salon overvalued whereas if your prices are too low, the quality of your service or the skills of your employees may be questioned. Pricing your services correctly is very important. Whether you’re a new entrant in the beauty business or an established one, consider revamping your pricing model from time to time in order to stay afloat with current expenses. Why Every Salon Owner Needs a Business Plan The way your services are priced speaks a lot about your beauty business. To grow your business and become the most sought-after salon in town, you need to start with the right pricing strategy. However, this isn’t something that happens overnight. Set the Right Price & Maximise ProfitabilityĮvery salon owner has just one goal which is to boost sales.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |