The Aspiring Stylist with Tracey Franklin

Welcome to the Aspiring Stylists Podcast with Tracey Franklin. Where to begin, grow and aspire to become the best stylist you can be. Whether you're thinking about becoming a stylist opening a salon, or developing your skills as an experienced stylist the next step of your beauty career starts here. Each week we'll discuss strategic ways to design, plan and execute on becoming a stylist that excels behind the chair and above the bottom line. Here's your host, Tracey Franklin.

I want to share a little bit about my personal experiences with price adjustments in my career, was I scared to raise my prices, I was so scared to raise my prices, like paralyzed with fear. I mean, at that time, I wasn't even sure if I was good enough to be charging what I was much less going up on my prices. Some of the things that kept me from raising my prices were I had no system to go by. When I did raise my prices, it was always based on necessity or emotion. I raised my prices when my rent went up, or when it had been awhile since I had done it last, I raise my prices when I needed to purchase something for the salon. I didn't know at that time that there were actually systems in place that could help me properly gauge when the time was right. Once I learned what key performance indicators to watch, for I was able to have more certainty, it felt so much more rewarding to know that when I did give myself a raise, I was doing it for a job well done. I did it because I set goals and I achieved them. When I got a raise because I earned it. That was definitely something that hit different. So what happened when I raise my prices, I mean all that fear around raising my prices. And you want to know what happened when I actually did it? Nothing. All my clients that I assumed would leave stayed and so many of them stayed time and time again, with each price increase. So many of them stayed. You see when you take this business seriously, clients take you seriously too, you're charging more, but that won't run them off, because you're worth it. They know it and you need to know it too.

Okay, so let's discuss the factors that influence the pricing of services in the beauty industry when lots of things factor in like the cost to perform the services. All products are not created equal.

But that shouldn't stop you from offering your guests the quality that they deserve. Where you live has a huge impact on pricing. I mean salons in California and New York are definitely going to charge more than salons in Tennessee and Iowa, what type of environment you are performing your surfaces and has a huge impact. Luxury costs more so high end salons charge more to provide the plush atmosphere and amenities that some other salons don't offer.

And of course, experience plays a part a newer, less experienced stylists will always be at a lower price point than a veteran stylists. That doesn't mean they're not good, it just means they're not as experienced. No matter where you live or how long you've been doing hair, you have to keep your eye on inflation. When the prices of the products that you use or sell go up you have to go up to because if you don't, over time, you will be making less money for the same exact work. So the numbers will tell you what emotion won't. So let's discuss the numbers. Early on, there are three key performance indicators that you need to keep your eye on, you need to maintain a prebook average of 75% or higher per 12 week period. You also need to maintain a retail average of 15% or higher meaning that for every $100 and services you do $15 and retail products need to be sold. We also need to consider your availability, supply and demand. If you're booked on average 85% of your available schedule, then you are in high demand and you need to raise your prices. I like to look at averages because in this industry, no two weeks are the same. Your biggest week ever could be followed up by a week full of no shows and cancellations. So we have to keep our eye on the bigger picture. I went for years one time without raising my prices.

And these metrics saved me. The following year I raised my prices four times. Every 12 weeks, I hit these goals and went up 10%. I took the emotion out of it and I just read the data. Sure I lost a few clients that year but the increase made up for it and I was able to clear space for new clients and new opportunities. So when it comes to pricing, I like transparency that doesn't mean you have to make a big deal out of it. You need to be able to read the room. If a client is on a beauty budget you can usually tell they inquire about pricing often and will probably drop clues in a normal conversation.

Question about things being expensive these days, or how high the price of gas is. And it's probably just worth a conversation about a price increase, it may sound something like, Hey, Jane, I just wanted to let you know about a current promotion I just received, I hit all my goals and have jumped to the next level of my career, you will notice a 10% price increase at checkout. And if you have any questions or need to modify your service plan, please let me know. It's as easy as that guys, don't make a big deal out of it.

And don't apologize in any way.

You have nothing to be sorry for you worked hard, and now you deserve more. It's really important that you understand the value of your services and that you stand by your prices.

Again, being nervous about raising your prices is normal, but letting it hold you back is detrimental. Your first few raises will have very few casualties. Early on, you're more affordable and a few dollars here and there isn't a big deal to most clients. But as you progress a few more dollars turns into a few more and sadly, you won't be in everyone's price range anymore. And that is okay.

I'd like to say everyone will be gracious about it, but from time to time you may receive some negative feedback. Stay strong and confident and express the understanding and then recommend another stylist in the salon that is in their budget. We've discussed everything from inflation's to what numbers to look at and how often to look at them. And now you know what to do.

Thank you for joining us on this episode of The Aspiring Stylist Podcast with Tracey Franklin. If you enjoyed listening and you want to hear more, make sure you subscribe on Apple Podcast, Spotify or wherever you find your podcasts. The Aspiring Stylist Podcast with Tracey Franklin is a Morgan Franklin Production. Today's episode was written and produced by Morgan Franklin editing and n by Mike Franklin. Want to find out more about Tracey and the Aspiring Barber and Beauty Academy go to aspirebarberandbeauty.com