Salon Service Pricing Made Easy with Salon Software

Many salon owners base their pricing decisions on competitors in the area, but this approach can lead to undervaluing your services and leaving money on the table.

When I opened my first salon business in the 1990s, full of enthusiasm and ambition, I made the mistake of pricing my services based on nearby salons. If a competitor seemed more upmarket, I would charge a bit less. If I thought my new venture was better, I would charge a bit more. Little did I know, I was making assumptions about their pricing strategy rather than basing my decisions on hard data and analysis.

At The Salon App, we understand the importance of data-driven decision making. That's why we offer our clients a free salon performance review, compiling a year's worth of data and tracking progress across 15 different metrics month by month. We present this information to the business owner, asking where they would like to be in a year and what would make it a successful year. Then, we deconstruct their data to create a plan.

One of the processes we implement is tracking how much time a service category takes up and what percentage of sales it represents. By comparing the percentage of time with the percentage of revenue, we can identify whether a service category is priced correctly. If the revenue percentage is higher than the time percentage, the pricing is likely appropriate. However, if the time percentage is higher, it's a sign that the service is underpriced.

One of our clients, Mark Murray from Cruz in the Northeast, used this process and was able to see in just a few minutes that the services he thought were the most profitable were not. Foils, his higher-priced services, were nearly the worst in terms of value when he factored in the time booked and the cost of materials. Using with this information, Mark was able to rectify the situation and get his pricing back on track.

The Salon App is an all-in-one booking management and marketing software platform designed exclusively for salon businesses. With our software, you can access valuable data and insights at the touch of a button, empowering you to make informed decisions about pricing, staffing, and other critical aspects of your business.

If you're ready to take your salon to the next level and maximise your profits, book a one-on-one demo with The Salon App today. See for yourself how our salon software can provide the data and analysis you need to succeed in today's competitive market.