How to correctly price your services.

shutterstock_102569891

Do a little research on the web and you will see a wide range of prices for particular services. Where should you price yourself? At the bottom, middle, or the top of the price range? As an independent stylist and an entrepreneur, it is truly up to you. What I can offer you is a guide to help you figure out what is the most comfortable for you.
For purposes of this exercise, I have chosen a color touch up with a toner and blowdry. There are a number of factors that apply to all services to consider:
1. Product Cost: What are the product costs involved in the service? For instance, a color touch up is going to typically involve 30 grams of permanent color, 30 grams of semi-permanent color, and 120 grams of developer. Then you have the value of a few clean towels (the cleaning of the towels, not the purchase of the towels.) Add these costs together.
2. Time to complete service: Start using a timer on your color touchups. Not just for processing, but for the entire service. A good timer to use is the one on your cell phone, that can record more than 60 minutes. Start timing your client service from when they sit down in your chair until they leave the chair on their way out. Get some averages. Write them down. Take notes of why some services took longer than others.
3. Value of your time: It is useful to develop a goal for yourself of how much you want to be earning per hour. What is your number? $30/hour, $60/hour, $100/hour…
4. Competitive factors: You may consider researching what a color touch up goes for in your area.
5. Your expertise: If you are new stylist and you are unsure of formulations and are slow, you may want to consider pricing yourself at the lower range in your area. On the other hand, if you are a formulation expert and you can do a formulation and application in less than 20 minutes, consider pricing yourself at the higher end.