Salon Pricing: How To Set The Correct Price From The Start (2023)

It’s pretty obvious that you need to be careful when setting up your salon pricing strategy. The competition is tough, and you need to understand the balance between the services you offer and the prices you set for them.

To do that, you have to study finances and business but simplified. Once you find that balance, both your clients and yourself will be pleased. You will obtain the profit you initially planned to win in the first place, and your clients will keep coming to your salon because of your quality, accessible salon services.

To make them conveniently accessible, check out Amelia, the best appointment scheduling plugin for WordPress– it can help you set a system that will enable your customers to choose a stylist, browse procedures and book a visit in advance.

You definitely need to get informed about the proper salon pricing strategies to get things right. It might take some time, but pricing is one of the most important details about your business, so it is surely worth all the trouble. You don’t want to set your prices wrong from the very beginning, as the mistake will be difficult to correct in time.

What are the first steps?

Salon Pricing: How To Set The Correct Price From The Start (1)

First of all, you need to ensure that you know how much your salon services are worth. Setting the prices right is all about avoiding under or overcharging them. A price that is too high or low can send your salon to the bottom in an instant. This is why you need to follow these few steps when choosing your salon pricing sheet:

Assess your services

Start analyzing the products and services you offer to your clients and set each price individually. You don’t have to be a math genius to put together a price list, but you need to do some research.

Once you set your initial pricing list, you might want to apply a financial formula for eventual discounts or other modifications that the prices will suffer in the future.

Build your brand

Your brand is highly important when it comes to pricing strategies. People won’t pay a huge price for a brand that they don’t recognize, so you have to start getting the word out about your salon.

The products you use, the professional employees you hired, and the numerous satisfied clients that you already have should be the elements you focus on to build a strong brand for your hair salon. Then, you can get the prices up.

Sell the experience, not the service

Never focus on the services alone. You need to convince the client that your hair salon is the only one that can offer them such an experience.

To do that, make sure you hire a professional team to take photographs of your salon, products, and overall experience during work hours. Then, promote the services by giving people some insight into what you sell.

Customer loyalty is the goal

The more loyal the customers, the more you can raise the prices. Repeat business should be your main focus, considering that you own a salon.

Invest in business cards or booking apps to help clients make an appointment easier and remember your salon. Promotional cards and email campaigns will do the job as well.

Get partners

If your salon is not that popular, but you know some that are popular enough so that clients can trust them, you can seek a partnership.

(Video) Salon Pricing: Formula for a higher hairstylist service price list

At first, this is a good strategy to advertise your brand. You can also get partners in other industries than yours, such as a gym or a community center. Getting “in bed” with other salon owners might be a double-edged sword.

Leave discounts for later

When you are at the beginning of your journey, you can’t afford to offer discounts. Remove the discounts, for now, sell your hair salon services at their full price and – once your hair salon gets profitable – you can start offering discounts when you notice that your sales went down.

Don’t ever undercharge

Even though you might not think that your nails or hair salon is valuable at the moment, it is just a perception that will modify in time.

Don’t undercharge your services just because you think your salon is not good enough.

Check the competition and see how their pricing list looks like. For instance, look at the pricing strategy that your competitors have or the average hair salon prices in your area.

Simplify it as much as you can

Salon Pricing: How To Set The Correct Price From The Start (2)

Many salon owners tend to go over their heads with the pricing list. No – you need to keep everything as simplified as possible. Keep the list of your services clean and the prices even cleaner.

Have you ever seen a hair salon pricing menu? It has a lot of choices anyway, so why make it even more complicated?

Try to list the services in the easiest way possible. Both your employees and your customers will thank you for it in the long run. When your team charges clients for a service, they want to have clear options to choose from, not a variety of services that are similar in too many ways. Of course, you need to keep your services diverse, but not extremely similar and differently priced, as many salons tend to do.

Keep in mind that the price list is the first thing you have to consider when launching a salon. If you ruin your reputation with a faulty price scheme, you will regain it through tremendous efforts.

Key factors that can affect the prices of your services

Salon Pricing: How To Set The Correct Price From The Start (3)

What can affect how expensive or cheap your services are?

Growing loyalty

As mentioned before, making your clients come back to your salon only is a high-end move. Try to please your clients and the profits of your salon will be maximized shortly.

Promoting the smart way

You don’t need to invest a fortune to get your salon promoted. You can include specific offers in your pricing scheme.

(Video) Salon Price Raise Series Part 2: How to Set Pricing?

For instance, if a customer purchases a cosmetic product from your salon, they get a discount on the service. This way, you promote what your salon has to offer without an additional budget dedicated to it.

Add-on services

Besides the haircut prices, you might want to think about complementary services as well. Add deluxe packages to the services that you already have on your list. Massages or exfoliation are just some of the add-on services that clients often choose. For a small effort and a little product usage, you can charge customers more.

Shifts and workload

Consider the fact that people make salon appointments during the weekend or in the afternoon, so try to accommodate the demand using shifts.

This way, you can pay your employees efficiently and not spend more than you can handle on salaries.

Timing is key

Finally, you should think about adding offers based on the schedule of the salon.

Since workload isn’t properly distributed in salons, you might want to add promotions during the off-peak time, so customers are encouraged to come, even when your salon is not usually booked.

Tips you should keep in mind at all times

Salon Pricing: How To Set The Correct Price From The Start (4)

You can’t set your prices right without considering these:

Realistic prices

Use a salon pricing template to stick with a pattern when setting prices for your products and services. A realistic price means that you are aware of the direction of your salon, the expenses you face, the resources you have, and the financial goals you want to reach.

Don’t set prices the same as your competition because that won’t encourage clients to choose yours over others. Come up with your own realistic pricing structure.

Covering the spending

You can’t charge less than you consume. The costs associated with your services must be visibly lower than your profit to call it a successful pricing strategy. Analyze how much money you spend during a week and set the prices accordingly.

Learn what inflation is

Each country faces inflation at some point, so try to keep up with the latest news in terms of the economy. During inflation, the costs of the products you need to run your services may rise which means you need to adjust the prices too.

Value the time resource

Sometimes, the cost of your services must focus on how much time and effort is involved in it.

Your time is the most valuable resource you possess, and you clearly don’t want to invest it all in your business. Your hair salon pricing list must include the effort you put in as well.

(Video) [Hair Business] How To PRICE Your Salon Services in 2022: Charging Hourly & Making Money | SKLPT'D

You can price low

Pricing low is not a mistake, as long as you do it the smart way. New entrants in the beauty industry can opt for this strategy until they gain a reputation.

Penetrating the market with a low pricing list is a common strategy, but it might have repercussions in the long run.

Once clients are accustomed to your salon’s low prices, when you are going to raise them to the point they are profitable, you will have lost most part of your clients.

Holiday pricing

Take advantage of holidays, the birthdays of your loyal customers, seasonal specials, and so on. These are days when you can increase sales visibly by offering appropriate discounts in the form of percentage deductions or even free add-on services.


Be careful about discounts, though. Offering discounts is a good strategy to stimulate demand, but you need to use them with caution and limitation. Avoid offering discounts throughout the whole year and stick to the calendar religiously.


It is quite sure that you will have to raise the price of your services at a certain point in your career, but you will need to do it with care. Try to keep the price rise as minimal and unobservable as possible.

Company worth

Start putting together the costs of keeping your salon running.

Is it profitable? What do numbers say?

Do this as often as possible to know what decision to make next.

Will your prices go down or up in the next few months? Your salon’s worth will answer all these questions.

Communication matters too

Communication skills might be a game-changer. Be careful with your brand presence and the way you deal with customers. Explaining your actions should be your number one priority but avoid apologizing. Instead, provide your clients with valid explanations all the time. Thank your clients for selecting your salon and don’t forget to praise your employees at all times, to encourage productivity within the salon.

Always stay open to discussion, both with your customers and your staff. No matter what the problem is, communication will surely solve the issue rapidly. Take your time to find resolutions to all obstacles that appear in your way.

And that’s about it when it comes to pricing strategies for your products and services.

Ending thoughts on salon pricing strategies

As you may have noticed, pricing is not as easy as it seems. It requires skills, patience, and a lot of research.

(Video) 5 Killer Tips for Your Salon Price List 💰

Your salon’s pricing list will determine how profitable your business will be in the next financial year, which means it will directly affect your life.

Apply the pricing tips you found here, and you will grow your revenue.

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If you enjoyed reading this article about salon pricing, you should check out this article with the best salon booking apps.

We also wrote about a few related subjects like hair salon websites, hair salon names, how to upsell salon services, beauty salon names, salon bookers, salon promotion ideas, how to open a hair salon, how to open a spa, salon management, spa websites, spa advertisements, spa scheduling software, spa WordPress themes, and salon booking systems.


How do you price beauty treatments? ›

When deciding how to set the prices for your beauty treatments, there are several variables to consider, from individual costs to client demographics.
  1. Know your numbers. ...
  2. Sell the experience, not the treatment. ...
  3. Hourly rate of pay and profit margin.

How do you word a price increase in a salon? ›

“Dear Valued Client, Please note that there will be a small increase in the price of our treatments to reflect increased costs from our suppliers/due to inflation/because of upgrades to our services and equipment/etc. We here at Salon Name appreciate your support and we hope to see you soon.

What are the 3 basic pricing strategies? ›

The 3 Most Common Pricing Strategies
  • Cost-based or cost-plus pricing.
  • Market-based pricing.
  • Value-based pricing.
13 Oct 2020

How do you price your client? ›

How to Present Your Pricing to Potential Customers at the Right...
  1. Present the Price at the Right Time. ...
  2. If the Customer Wants to Know the Price Immediately. ...
  3. Establish What the Customer Needs. ...
  4. Show them Your Solution. ...
  5. Present Your Price. ...
  6. Establish the Next Steps.

How would you price your service or product? ›

How to calculate product pricing, step by step
  1. Add up variable costs per product. ...
  2. Add in your profit margin. ...
  3. Factor in fixed costs. ...
  4. Test and adjust accordingly. ...
  5. Understand common pricing strategies in your industry. ...
  6. Conduct market research. ...
  7. Experiment with pricing. ...
  8. Focus on long-term business profit.
31 May 2021

How do you price a product? ›

How to calculate product cost
  1. Categorize manufacturing costs for a specific product. ...
  2. Tally the costs of all the direct materials used to make the product. ...
  3. Add up all the costs for direct labor. ...
  4. Find the sum of the manufacturing overhead costs. ...
  5. Count the total number of new units.

How do you decide the price of products and services? ›

7 steps to setting the right price for your products or services
  1. Calculate your direct costs. ...
  2. Calculate your cost of goods sold or cost of sales. ...
  3. Calculate your break-even point. ...
  4. Determine your markup. ...
  5. Know what the market will bear. ...
  6. Scan the competition. ...
  7. Revisit your prices regularly.

What is an acceptable price increase? ›

Supply and demand are something you must take into consideration. A good rule of thumb is if your booked 75% – 80%, then it's time to raise your prices.

What are the 5 management tips in a salon? ›

5 tips to help you manage your salon
  • Communicate with your salon staff. ...
  • Build a strong team as a salon manager. ...
  • Take your time when hiring your salon employees. ...
  • Stay current with salon tools, trends & processes. ...
  • Keep your salon neat and tidy.
7 Mar 2018

How do you calculate likely charges for hairdressing services? ›

This starts by knowing what you are charging per minute for each and every service. Take each service and divide it by the time you use (e.g. $65 Cut/BW 45 mins – 65 divided by 45 = 1.44). Do this with EVERY single price! Bear in mind that this step is just a place to start.

What is the most important part of any salon service? ›

Did you know that your stylist should consider your consultation THE most important part of your salon visit? It sets up the overall happiness of your service, ensures that you and your stylist are on the same page, and helps your stylist get to know you, and vise versa.

What are the 4 main ways of pricing? ›

What Are The '4 Pricing Methods'? There are 4 Pricing Methods that can help you put a price on what you sell: replacement cost, market comparison, discounted cash flow/net present value, and value comparison.

What is the easiest pricing method? ›

Cost-plus pricing: a simple markup

Cost-plus pricing, also known as mark-up pricing, is the easiest way to determine the price of a product. You make the product, add a fixed percentage on top of the costs, and sell it for the total.

What are the basic pricing methods? ›

The 5 most common pricing strategies
  • Cost-plus pricing. Calculate your costs and add a mark-up.
  • Competitive pricing. Set a price based on what the competition charges.
  • Price skimming. Set a high price and lower it as the market evolves.
  • Penetration pricing. ...
  • Value-based pricing.

How do you answer a price question? ›

To answer the price question right away while also building value, try one of these strategic responses. Use a direct, matter-of-fact, confident tone. Price + Question: "The preliminary price is $____ and that includes ______. What criteria, other than price, will you be using to make your final decision?"

How do you tell customer this is the best price? ›

Enlighten the customers on the value they'll get

Before providing the price, make sure you're transparent on what the customers are getting in exchange for their money. In short, provide the value before providing the price. Don't go straight to discount if they ask. Instead, trade on value not price.

How do you present new prices? ›

How to Announce a Price Increase to Your Customers
  1. Be Transparent and Clear.
  2. Make Change Easy for Customers to Implement.
  3. Update Your Marketing Materials.
  4. Announce the Price Increase Directly to Your Customers.
  5. Offer to Chat or Call.
  6. Give the Reasons for a Price Increase.

How do you set a price? ›

To set your first price, add up all of the costs involved in bringing your product to market, set your profit margin on top of those expenses, and there you have it. This strategy is called cost-plus pricing, and it's one of the simplest ways to price your product.

How do you price a product for beginners? ›

The number of competitors selling the product. The number of substitute products. Competitor prices. Demand.
There is no one-size-fits-all pricing strategy
  1. Different fixed costs and product costs.
  2. Different target profit margins.
  3. Different strategic plans and business objectives.
11 Jun 2020

How do you set a price for a used product? ›

50-30-10 RULE: Near-to-new items should be sold for 50 percent of their retail price; slightly used items at 25-30 percent of retail; and well-worn items at 10 percent of retail.

What is the formula to calculate cost price? ›

Cost price = Selling price − profit ( when selling price and profit is given ) Cost price = Selling price + loss ( when selling price and loss is given )

What should you say if a client tells you that your price is too high? ›

What to Say When Your Customer Says 'Your Price is Too High'
  1. “Gosh, I didn't think it cost this much.”
  2. “OK, is there any sort of discount if I pay cash?”
  3. “Well, guess I'll need to wait till next year.”
  4. “I'm still waiting on some other estimates.”
  5. “That's quite a bit higher than I thought it would be.”

How do you justify a price increase? ›

You should look for ways of adding features, benefits or “bells and whistles” that cost you very little to add on to the product or service you're offering, but create a “perception” of much higher value.

How do I raise prices without losing clients? ›

Communicating proactively, framing an increase in context of the value proposition and using data-based approaches are all key to raising prices without alienating customers.

How do you convince a customer to accept a price increase? ›

8 Techniques to Justify a Price Increase
  1. Introduce a new version. ...
  2. Cut to the chase. ...
  3. Remind customers about the value they get. ...
  4. Tell them about your costs. ...
  5. Be humble on social media. ...
  6. Launch a low-cost version. ...
  7. Highlight social responsibility. ...
  8. Make sure your price can be justified.
20 Apr 2017

How do you respond to a customer asking for a lower price? ›

How to respond to a customer's price negotiation request
  1. Share the lowest terms you can offer and add variables. ...
  2. Examine why they want to negotiate and actively listen. ...
  3. Focus on the simplest issue first. ...
  4. Trade discounts for concessions. ...
  5. Convince them of the value of your product. ...
  6. Negotiate as long as possible.
29 Jun 2021

How do salons attract customers? ›

10 ways to attract new salon clients
  1. Make the most of local SEO. ...
  2. Encourage reviews and referrals. ...
  3. Develop a social media strategy. ...
  4. Offer online bookings. ...
  5. Offer Buy Now Pay Later (BNPL) ...
  6. Work with a local influencer. ...
  7. Post tips and tutorials online. ...
  8. Partner with a local business.
22 Jun 2022

What is the best way for a salon to make a good first impression? ›

Be courteous and attentive: Good manners, polite, attentive and courteous behaviour helps to make a great first impression. Every client deserves 100% of your attention, so always be on your best behaviour with all clients. Be positive: Your attitude shows through in everything you do.

How can I be a better salon manager? ›

Several characteristics make for a great salon manager. They include being a good communicator and being organized, diplomatic, and customer-focused. Having a good understanding of the beauty industry is important and experience within hair salons is also ideal.

How much should I be charging for hair? ›

Pricing for haircuts can range anywhere from $35–$150 or more. Hair coloring services range in price from $65 to $200 or more, depending on the products used and the stylist's reputation.

How much should I charge as a hairstylist? ›

Stylists vary in skill level and price range. Hourly rates vary from $50/hour to $200/hour. This hourly rate is a flat rate so you know exactly what you're investing in every time you book a reservation. With a la-cart pricing, there are add on services, extra charges, along with a tip.

What are fixed costs in beauty salon? ›

Here are some of the most common beauty salon costs to consider.
  • Rent. Paying for a space to run your beauty salon will be one of your most significant monthly expenses. ...
  • Equipment. ...
  • Licenses and Permits. ...
  • Supplies. ...
  • Insurance. ...
  • Payroll. ...
  • Utilities. ...
  • Credit Card Processing Fees.
9 Apr 2020

How can I be a successful salon? ›

8 Tips For Running a Successful Beauty Salon in 2021
  1. Beauty Salon Management Starts With A Clear System.
  2. Recruiting is Key, Training is Everything.
  3. Mix Formal & Fun Communication To Make It Effective.
  4. Motivated & Engaged Employees Make Happy Clients.
  5. Simplify The Daily Hustle With A Nimble Salon Management Software.
27 Jan 2021

What do customers want from a salon? ›

Quality. The first, perhaps most important thing that customers want to get to the beauty salon is quality. When a customer spends their hard-earned money on a haircut, they expect their hair to be done with utmost care. Some will even go the extra mile to find the best haircut offerings.

What is the most appealing pricing strategy? ›

Comparative pricing may be tagged as the most effective psychological pricing strategy. This simply involves offering two similar products simultaneously but making one product's price much more attractive than the other.

What are the 4 pricing strategies? ›

What are the 4 major pricing strategies? Value-based, competition-based, cost-plus, and dynamic pricing are all models that are used frequently, depending on the industry and business model in question.

Which pricing strategy is best for small business? ›

Pricing strategies for small businesses to try include value-based, cost-plus, and competitive pricing. Small businesses can avoid a price war by building their brands, offering niche products or services, and conducting diligent market research to understand customer needs and price sensitivity.

What are the sales techniques in a salon? ›

Effective Cross Selling In A Salon
  • Set Up an Eye-Catching Display. One of the easiest ways to sell a product is by clearly showcasing it in a display. ...
  • Properly Train Staff to Cross Sell. ...
  • Try Products on Your Salon's Customers. ...
  • Host a Beauty School Night.
27 May 2014

How do you set a price for a service? ›

If you want to know how to determine pricing for a service, add together your total costs and multiply it by your desired profit margin percentage. Then, add that amount to your costs. Pro tip: Consider your costs, the market, your perceived value, and time invested to come up with a fair profit margin.

What is the first step in the price setting process? ›

The six stages in the process of setting prices are (1) developing pricing objectives, (2) assessing the target market's evaluation of price, (3) evaluating competitors' prices, (4) choosing a basis for pricing, (5) selecting a pricing strategy, and (6) determining a specific price.

What are the methods of pricing? ›

12 types of pricing strategies
  • Penetration pricing.
  • Skimming pricing.
  • High-low pricing.
  • Premium pricing.
  • Psychological pricing.
  • Bundle pricing.
  • Competitive pricing.
  • Cost-plus pricing.

How do you use 5 pricing techniques? ›

The 5 most common pricing strategies
  1. Cost-plus pricing. Calculate your costs and add a mark-up.
  2. Competitive pricing. Set a price based on what the competition charges.
  3. Price skimming. Set a high price and lower it as the market evolves.
  4. Penetration pricing. ...
  5. Value-based pricing.

What is the ideal pricing strategy? ›

Cost-plus approach is one of the best pricing strategies for retail companies. Based on the products that are offered, they can charge different markups. However, this is not ideal for example software service companies and music producers as the product price is significantly higher than the product cost.

What are the best numbers to use for pricing? ›

According to a 1997 study, the most common ending numbers for a price were 9 and 5. These two numbers accounted for a whopping 90% of the prices they analyzed. Just the 9-ending alone dominated 60% of the data set!

What is an example of pricing? ›

An example of value pricing can be seen in the fashion industry. A company may produce a product line of high-end dresses that they sell for $1,000. They then make umbrellas that they sell for $100. The umbrellas may cost more than the dresses to make.

What are 3 selling techniques? ›

  • Product Selling. Product selling is exactly what it sounds like: selling the advantages or features of a specific product or service. ...
  • Solution Selling. Solution selling goes beyond simply selling products or services. ...
  • Insight Selling.
1 Mar 2017


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