The Pricing Mistake 68% Of Hair Pros Are Making
Advertorial
The Pricing Mistake 68% Of Hair Pros Are Making
Are you charging enough? We have the pricing tips you need
by AMANDA | INFORM
Salons are feeling the squeeze more than ever, especially those employers hit by the changes introduced in the Autumn Budget. The rising cost of living has impacted everyone, and you’ll know from your own bills how the prices of, well, just about everything are continually nudging up. The obvious step is to raise your prices too – even though salons hate to do it! But you can’t stop there. Now is the time to get savvy about pricing – incorporating ideas such as dynamic pricing and price reviews – to see a real impact on your profitability. We’ve asked Fresha, the go-to platform for beauty and wellness bookings, for the six steps you need to be taking right now!
Step 1: Set discounts that keep your salon’s profits healthy
Keep your profits in mind as you choose which services to discount with smart pricing and by how much. Making your off-peak prices and last-minute discounts too high could undervalue your services or impact your self-employed staff’s earnings. So, determine the perfect amount that will let you make a healthy profit while attracting plenty of clients.
Choose whether to offer a percentage or fixed amount for each discount based on the service’s original price. For example, with lower-priced services, a percentage discount may offer better perceived value; 15 per cent off a service that costs £20 may sound more appealing to your clients than £3 off.
Step 2: Identify the best times for off-peak prices in your reports
Check your sales reports to see when your least busy periods are, and set your off-peak prices to automatically switch on during those times. You can even set multiple off-peak times per day. For example, if your salon tends to be quiet right when you open and during the afternoon lull, set your off-peak prices for services booked between 10am to 11am and 1pm to 2pm.
Be sure to examine a big enough sample of your sales reports to identify patterns in your bookings. A few months or even a year’s worth of reports will give you the clearest possible picture of your off-peak periods and help you stay booked during those off-peak times.
Step 3: Offer bigger last-minute discounts closer to the appointment time
To create a sense of urgency and encourage clients to book quickly, offer bigger discounts for bookings made closer to the appointment time. Be sure to strike a balance with a discount that tempts clients to quickly book empty slots, without encouraging them to only book last-minute. For example: offer 10 per cent off bookings made between 24 to 48 hours before the appointment time, and 20 per cent off bookings made on the same day of the appointment.
Step 4: Switch your smart prices on and off at optimal times
Be strategic about when you activate your smart prices to maximise your revenue. For instance, if you get more walk-in appointments during the summer season, deactivate your off-peak prices and last-minute deals to avoid offering discounts on booking slots that would have sold at full price anyway. Then activate them again once walk-in traffic starts to slow down.
On the other hand, if you typically get booked by clients preparing for seasonal events like holidays, and weddings, you could switch on your off-peak pricing ahead of time to fill up your calendar in advance, then switch it off again once you’ve got a few weeks’ worth of bookings.
Step 5: Promote your smart pricing to as many audiences as possible
Make the most of your smart pricing and encourage clients to book by promoting your discounts at every opportunity. Ask your staff to mention your smart prices in their conversations with clients. Share your offers regularly on social media to make sure your followers are kept in the loop; always make your posts engaging and shareable to increase your chances of reaching new clients.
You can also use a blast campaign to instantly share your smart prices with clients who are most likely to book. For instance, you could send your most frequent clients a text message to promote a last-minute offer on next-day bookings. Or send an email highlighting your off-peak hours to clients who have more time during the day, like students or parents whose children attend school.
Use your off-peak pricing and last-minute offers to stay booked and get more value out of each day. For example, when your clients book through Fresha, they can only use one discount at a time, so you don’t need to worry about accidentally doubling up on discounts. Plus, you can switch them on and off in minutes, so don’t be afraid to try out different discounts to figure out what works best for you.
Not signed up to Fresha yet? Sign up now for free, and see what the go-to booking platform for beauty professionals can do for your salon.
