Know how to price your treatments

Have you ever thought…?

I work so much, but, my salon is not in profit, why?

Profit must come first…

Have you ever heard this before?  Some people struggle to get their heads around it.

Many people think that when pricing services/treatments it is just a case of the product costs and wages.

Do you ever think about:

  • Utilities
  • Previous and Future Training
  • Adequate Insurance
  • Licenses
  • Magazine subscriptions

There is so much that goes into pricing structures.

 

 

Profit is often forgotten about.

I often hear ‘I don’t mind just earning…’ or ‘I am new so for now I am happy with…’

I will just ask you…  Did you go self employed to earn minimum wage?  Or was it to have financial freedom?  Was it to have time freedom?

Earning the right amount can determine how many hours you NEED to work in order to cover your personal bills as well as business bills.

Use the chart above

  • Enter the treatment
  • Enter the product cost, it is usually a few pounds.
  • Enter the wages you pay your staff.  In this instance you must enter a wage for yourself.  I always say pay more than minimum wage, but even if you just enter the national minimum wage here.  It will just help you see a more detailed look at your pricing.

Was this useful?  I hope it has made you think…

Here is a video to show you how to use the chart…

This is for members only, if you would like to look at our memberships click here…

Useful Finance Resources to help you manage your cash flow and profit.

Knowing how much to charge per treatment

This is a really super cool formula to help you understand costs involved in pricing.

When you have a pricing structure, you can always make sure there is profit being earnt in your business. 

Many people think pricing is just about cost of product and some wages.  There is so much more to it.  This makes it easy.  Take a look…

Understanding my salon outgoings at all times

Knowing how much you spend in your business is crucial to making profit in your business.

It is easy to get carried away with spending.  Sometimes we have to spend.  There are times when we could probably cut spending.

By knowing your costings makes this much easier and will keep a profitable business.  

Know how much my salon needs to earn per hour

When you know how much your salon needs to take, down to the hour, it can really help you achieve your goals.

This can be a bit of a reality check.  You can play around with this chart to see how much you would have to earn to work your dream hours.

It helps give you direction and create strategies to make this work.

Cash Flow Forecast planner for profit

Have you ever done this?  Use the Salon Outgoings to help here.  A cash flow forecast can help you predict earnings, based on your business.

Understanding when money will be coming in and out of your business is crucial.

Download our cash flow forecast to stay on top of your finances.