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Course Content – Pricing For Profits

Welcome VIP’s. You will love this course. It’s amazing!

First stop, this is my upgraded version. If you would like to buy the Pricing Bonus Package, which will make this whole thing easier, click HERE.

As a VIP member you get a 50% discount, so make sure you use the code PFP50

Part 1

I want you to answer these questions. If you can’t, leave them and come back to them. But make sure to actually answer them as they will help you later on. Think of it as a very mini business plan.

1. What is your business?

2. What services do you offer your clients?

3. What services do you want to offer your clients?

4. What is your Unique Selling Point? – What makes you special?

5. Who do you see as your competition?

6. What are they doing that you are not?

7. What are you doing that they are not?

8. Do you have any idea who your ideal client is?

9. What services or products do your clients buy on a regular basis?

10. Most popular services?

11. Least popular services?

12. Why? (for both)

13. How can you be better than anyone else in your area?

14. How do you plan to promote your business on a regular basis?

15. Do you want to offer tiered pricing or a more generic pricing structure?

16. What does an ideal day look like to you in your business?

Do these and then move on to the next section.

Part 2 – See what is happening in your business already

Before you even consider increasing your price list I always love to know what my busiest services are, what my people actually want.

It doesn’t matter what YOU want, as such, you need to give your clients what they are clearly asking for because that my darlings, is where the money is!

So go back through your diary for the past 6-12 months and see where your time is being spent.

How many of each service have you done?

How many foils? How many dry cuts? How many nails? How many brows? Do the full list.

If you haven’t been going long enough, do what you can or skip past this section and come back to it in 6 months time.

Then what do you have on your price list that no one is taking you up on? Either they know you do it and don’t want it or you have never promoted it enough for people to even know it exists?

I know you will all have a thing or two… Those packages you thought were a great idea… if you haven’t sold one in 3 months. Put a big fat X next to it. You will be promoting or getting rid. Not both.

Right, now then.. We have a current service list and we know what is popular and what is not.

Perfect!

Part 3 – Your hourly rate

We can start this now and finish it later. I think you should all have some sort of idea how much you want to make an hour.

Not take, MAKE an hour.

Some of you will say £10 an hour, some £20-30 an hour. Pick any number you like, but don’t be silly. You’ll have to be some extra level of special if you think you can charge £500 for a dry cut when you’ve only been qualified a week. I’m all up for being ambitious, but let’s play it safe for now.

If you have no idea what to choose then I strongly recommend you start with the national minimum wage 25 years and over ( as of 1/4/20 – £8.72 per hour) and then as we go along you can build on that. Or as your knowledge and confidence increases then you can add more on again. But for argument’s sake let’s start on £8.72 an hour.

You need to make sure that you don’t even put your bra (or socks for the men) on for less than that and certainly don’t leave the house and drive anywhere for less than that.

YOU HEAR ME? 😂

Part 4 – Cost of sales

This is a long task but you need to do it, I have given you the list I worked with. You will need to edit as you see fit and add or take away some products but the bulk is there for a mobile hairdresser that does colour services.
Colours
Permanent 
No Ammonia 
Demi 
Semi 
Bleach 
Peroxide 
Developer Lotion 
Perm Lotion 
Keratin Products
Olaplex – Any kind of Plex  
Disposables 
Plastic Capes 
Plastic Caps 
Gloves 
Foil 
Cling Film 
Perm Papers 
Tissues/kitchen roll  
Styling
Roost Boost or volumising dust
Serum
Mousse
Hairspray and shine spray
Hair Pins or any other hair up tools, donuts, padding, accessories
Shampoo & Conditioner
Conditioning mask 

Anything else that you use to work that you have to buy, write it down and get a price next to it.


Other – don’t worry too much about these but if you want to create a savings account for more pricey items it might be a good idea.
Electricals
Tool bags
Towels
Big things 

Who do you use as your regular go-to wholesalers?
Don’t say some random one you bought from once because it was cheaper – be realistic. If you know, like me that you have a local one you pop into weekly for something you have forgotten then use that as your go-to place. I have 2 that I use on a regular basis – CAPITAL & SALLYS and I pop into them or I also order online from other places.

Open their tab up online and start searching for the prices of each item you buy regularly and write it down next to it. This will take a while but it is so worth it. I actually thoroughly enjoyed myself when I did it. Even if you’re not into numbers it’s still interesting to see. Like my £500+ food bill, I had that January! Oops haha.  

Once you have written the price of everything down, you need to then work out how much colour and peroxide you use per person. I can’t tell you this, I don’t have the same clients as you. Don’t get too caught up on this if you don’t know at the moment. Start paying attention next time you do your clients. Start using scales and measuring and making notes.

Work out how much 1ml of everything costs. 1ml of tint, one ml of peroxide, 1 ml of bleach. So you can work out exact prices later. I use Matrix which is a 1:1 ratio and some of you have different. So work that out for your own colours or whatever products you use.

EXAMPLE ONLY – Me working with Matrix colours – £7.68 for 90mls would be £7.68 divided by 90mls = 0.085 (almost 9p per ml) – I would use around 30mls per client which would work out at £2.55

Peroxide – £8.88 divided by 1000mls = 0.008 and if I use the 30mls again my peroxide will cost me 24p

Then if I add the cost of my tint and the cost of my peroxide the total cost for the product is £2.79 for 60mls of product.

You must measure your colour out correctly so you stop throwing money down the drain!

Get some decent scales. Go on Amazon and search for electric kitchen scales. I have some Salter ones.   

Gloves, obviously you only need one pair of gloves when doing roots, so they were costing me 7 pence per pair. That needs to be included in the cost of them having their hair done. Plastic cape, use once and throw away so you need to work out the cost of capes, divide by 100 (however many are in a pack) and then you know how much a cape needs to be added to their bill.

Make sense?

Part 5 – Cost Of Business 

These costs are not based per client but an overall business cost you do need to be aware of. As these costs have to be covered before you can make ANY PROFIT.

Examples –

Internet

Work phone

Website

Subscriptions (My VIP course etc)

These mini-course type training’s

Hair or beauty training

Marketing

Make sure you understand all of these costs and the total for each month so you know how many clients you need to do before you make a profit.

Part 6 – How to work out fuel costs 

This is really easy to do. Might take a week or so but do make sure you do it. And often if you can. Fuel prices change a lot.

Empty your tank to red then fill it up. PRESS THE BUTTON ON THE DASH TO RESET THE TRIP METER.

Write down how much it costs to fill it to the top.

Pay attention to the cost of the fuel per litre! I think mine in most places is £1.29 at the moment, but as that goes up, your prices need to adjust otherwise you’re spending too much on fuel!

Get it down to red again and then see how many miles you have done.

Then you can work out how much it’s costing you to travel. Remember this is fuel alone, this is not the cost of wear and tear on the car.

Example…

£52 to fill the tank up

I do 300 miles and I am back on red

52 / 300 = 0.17 p per mile

HMRC advise you to charge 45 p per mile to also cover the cost of your wear and tear.

THIS DOES NOT COVER THE COST OF YOUR TIME TRAVELLING.

For the love of God, never charge someone just 45 p per mile. The time you will never ever get back. This is where people make such big financial mistakes.

If an hour’s journey is what you need to do then you must charge your 45 p per mile PLUS your £8.21 hourly rate.

This is non-negotiable unless you’re doing a one-off and you will make at least £200 then you feel free to write off the travel costs. But be smart about it.

Part 7 – How to be confident with your prices

Now that you have been working out your actual costs and you have added the NMW (or your chosen hourly rate) you should be at least halfway to confident with your prices. You’re not scamming anyone, you’re not plucking a number out of thin air. Those numbers are correct (if you did the math right) so you don’t need to feel bad for telling someone that their colour is £45. You can literally break it down for them. (though I suggest not to bother – you are already losing if you need to explain!)

Tint £7.68 per tube

Peroxide 81p per application

Gloves 45p each

Cape 27p

Shampoo 50p

Conditioner 50p

Styling products 2.50

Fuel £5

Hourly rate of £8.21

But while you CAN break it down for someone – don’t tell them actual prices, I think they think we put water on their heads and it magically turns to chemicals! Products are not free, and we are not a charity so the products need to be paid for by your clients. That is how business works. Very simple.

In The Hairy Business Lounge, I posted some affirmations from Denise DT and I want to readdress that. Affirmations are amazing to use. I have had Denise as a mentor for about 6.5 years now and she is all for a first-class life and charging your worth,.. I love her- obvs so I will post a few more of her videos in here for you to watch.

If you can’t stand the accent – totally understandable then here is what you can do- start small with an easy one and say it to yourself repeatedly 2-3 + times a day until you really start to believe it and then you’ll see it ♥

“I am worth the prices I charge”

“I feel comfortable charging £10/£15/£20/£50 an hour”

“Clients love paying me my prices AND tipping too”

“I easily and effortlessly earn £500/£1000/£2000 a week”

If you have never watched The Secret then you should get on YouTube, if you don’t have Netflix. It’s great as a taster for improving your mindset

Part 8 – How to implement a price increase

I love this. Love love love it!

Super simple.. when you know you’re doing an increase. Start telling everyone! So you can prepare them. Drives me mad when I read stylists don’t even bother telling their clients then wonder why some have flaked off. Go figure.

Anyway, tell them in person.. no need for a Facebook status update. Not only do few people actually see everything you post, but it’s also not the place for it. 

While you’re telling them, get their email addresses! This is a huge thing having an email list, you can make money from it later, but for now, you want it for basic information. 

Tell them all and give them a month or so’s notice. While you get to work on this kinda thing to make sure that you are doing ti right. Give yourself some breathing space.

Then when the time comes, you can update your website prices so all your new clients visiting your website see’s them straight away. Then you can ping out an email – feel free to copy, paste & edit…

Hi ladies and gents, ( or put names if you have time)

I hope you’re all well! ( polite and they know it’s a general email to all)

As I mentioned a while back, my price increase/ price edit/ restructure is complete! ( Like I suggested to you)

Here is a link to my site so you can view the new prices. ( website links are great for professionalism and making sure your page is being viewed by locals)

These will be in effect as of 1st of (whichever month is next) – (give them 4-8 weeks notice to find another stylist if they can’t afford you. Don’t be a prick about it)

If you’re stuck or confused about anything, don’t hesitate to send me a message and I’ll gladly help. (this is a nice soft ending)

See you all soon. (confidence that you will see them!)

Stephanie x (polite & friendly)

NEVER EXPLAIN OR APOLOGIZE! EVER.

You are not asking for their permission. This is your business and your life. They don’t get to choose what is or is not OK in your life. Only you get to choose that.

Then that is it. Send, then go and hide if you need to haha.

Don’t worry if some leave, that is OK. It really is. You are opening the doors to better clients.

Part 9 – A little tip

We will go through some FAQ’s in the Facebook group about what to do if they question it.

Also.. if you really want to be kind and keep some clients on a bit longer, you can offer them a deal.

If they prepay 4 appointments in advance they can keep the old price – I did that for 2 months as a thank you. £80 a hit, for 4 appointments instead of £22 every few weeks. That was Dry Cuts when I offered them. I no longer offer them.

If your clients book and keep 4 appointments (big colour) they can keep the old price for those appointments.

I try not to do that these days but I used to and it worked a great deal, so don’t be shy when offering deals but only do it for people who you think may genuinely struggle – don’t do it for everyone or you may as well not have an increase at all.

Post in here how you got on with it 🧡

Part 10 – How to respond to their texts or comments

While you are breathing there is someone that won’t like what you do. Too bad. You carry on!

I posted in some Facebook groups about the things clients say to you regarding your prices.

It was hilarious! Cos we have all had it at some point. If not, lucky you!

Here I will give you some replies to the most common ones.

🖤 “I can’t afford those prices”

Thank you for letting me know. Would you like me to find another stylist for you to use?

🖤 “Is my price actually going up?” For those people who have some sort of arrangement – I know you do it.

Yes, everyone’s price is going up. I did mention this was happening a few weeks ago. Would you like to keep your next appointment?

Do as I tell you in the beginning, to cover your arse and then, be sure to check they still want you. Nothing worse than you or them being left in limbo! Just ask.

🖤 “Head Masters/ Sally down the road/ next doors dog is cheaper”

 I appreciate other stylists or salons may have different prices than I do. I am not trying to compete or undercut anyone else. My prices are a reflection of my skill, products used and the value I offer to my clients. I understand you may not be able to afford my new prices which is why I have sent the email out before your next appointment.

WAIT. Don’t start saying sorry and waffling about WHY you need to increase them.

SHHHH. Let them speak. Sometimes they are just moaning and don’t want to go anywhere else. Do not be bullied or pressured into lowering it again.

If you don’t hear anything and they have an appointment booked in – YOU NEED TO CHECK!

Hi, just checking if you wanted to keep your next appointment. I know we discussed pricing but I’m not sure if you’re staying with me or prefer to find another stylist. Just let me know, either way, I have some recommendations if you need them. x

Be nice and friendly.

🖤 ” That increase is too much”

Thanks for getting back to me. I appreciate there is a bit of a jump, however, I have just spent a lot of time on a pricing course to ensure that I run my business the right way. Turns out I was massively undercharging for my services. Please let me know if you would like to keep or cancel your next appointment. Stephanie x

🖤 Anything they tell you, don’t react to it straight away. Take a few hours after you have read it (where possible) and respond later. Reacting is when ego’s get in the way and no one wins.  Sometimes you will find they just want to moan, and they will still pay your new price. Don’t panic, be rude and turn them away. Just wait and stay calm. This is no reflection on you, you have just triggered them. 

You will keep some and you will lose some. That is life. Both outcomes are OK. 

Post in the group if you get stuck, or if you have some exciting news to share about your pricing ♥