Should You Publish Prices to Increase Salon Revenue?
Posted on August 14, 2009 with No Comments
Publishing your prices to the world – competitors or prospective customers, alike – can be a good thing and, well, a not so good thing.
With a deepening economy and salon traffic and sales down substantially, the creativity fires are brewing – leading to many conservative as well as fringe techniques for getting more folks through the door.
Most recently I noticed one of the top boutique salons in Atlanta publishing their prices on their marque. Normally used for prophetic sayings or introducing new products, the sign clearly laid out all the prices they were charging for certain treatments…shampoo and style; shampoo, color and style, perms, et al!
While this may not seem too unusual, for this “top tier” exclusive salon, it was unexpected for me. Does it work? Well, yes and no.
The first argument is that you give away your pricing to your competition and you lose exclusivity. The first issue is competitors can get your prices easy enough with a quick call or having a “shopper” stop by the salon or in fact have their hair done.
Yet pricing exclusivity issue is another challenge. Exclusivity draws customers, and in some cases, repels them. The trick is to find the balance – which I believe is understanding what are the most common treatments in your area, finding a price point that will draw folks into the store, then keeping them (with service and a great hairstyle) for increased salon revenue?
So, how do you price the services?? I recommend running seasonal or situational sales – back-to-school, Thanksgiving, Halloween, wedding parties, etc. Whatever the occassion, make sure it is well publisized – on your website, in the papers, on your sign, or have a small sign made-up to stick in your lawn, outside the store or in your window.
Remember, as you consider pricing and competition, that the majority of customers will stay with and be loyal to their stylist once they find someone who works well with them and does a great job on their hair. Pulling someone away from that loyalty is tough, so make it easy with the right pricing and occasion.
The idea to keep in the back of your mind is that if you normally see 60 customers per week and each of them extend their stylings one week, you will lose about 240 stylings per year – or the equivalent of roughly one month’s worth of revenue. (Note- this assumes your clients get their hair styled once per month)
Price your services and consider your service specials accordingly to make-up for that lost traffic.