How to Ensure the Price is Right

Pricing your treatments correctly is an important part of determining success. Often overlooked, it can be easy to fall into the trap of pricing your menu in line with that of your competitors. However, this is a dangerous method if your costings don’t add up. To ensure that your business is lucrative, it is a good idea to establish what your service costs are before creating a pricing structure. For advice on how to ensure the price is right, take a look at our guide below:


In the salon environment, you are selling time. Each treatment takes a different amount of it, so why wouldn’t you price around this point? Perhaps it would be beneficial to sit with your accountant and calculate how much it costs you to produce one hour of service. By knowing this, you can then add on your desired profit margin and reach the most appropriate price for your business, while taking into consideration your target audience. Always put a time limit on each service to avoid appointments overrunning. This helps to set out what is achievable and should the client need to book another appointment, they can do so.

Exclusivity and skill

How exclusive are your treatments? Does a salon locally offer them? If not, perhaps your pricing structure should reflect that? If they do, it would be beneficial to align yourself to be competitive. Try to avoid undervaluing your services, as this won’t reflect well on you in the long term. If you under-price yourself or drop prices quickly, clients will begin to believe that the skills and products used are of inferior quality, or that the treatment was initially overpriced.

Customer service

It’s understandable that salons feel pressure to lower their product prices as larger companies, particularly those online, are competitively priced. However, it is good to remember that they can only honour that price because they buy in bulk, and should a product not sell well, they are more able to absorb the cost. Therefore, instead of lowering your prices to compete, why not focus on something you have more control over such as 5 star customer service in order to keep your custom.

Clear decisions

Always explain your reasoning for changes in charges, whether that’s an increase or decrease. Clients are much more likely to accept the change if they understand the reasoning behind it. If you are worried that changes in pricing may scare off some clientele, consider ways to increase the value of your services without incurring additional costs. Perception is important. Little things such as an extended head massage or foot soak and rub will ensure your clients feel as though they are getting a luxurious experience and are willing to pay more as a result.