Salon Swagger

Brie (00:01)
Hey there and welcome to salon swagger make bank run the show ditch the chair. I'm Bree and as always I am joined by the amazing Chandra C. Hey girl, what's up?

Chandra (00:10)
Hello? Not much.

Brie (00:13)
Well, today we're diving into something that every salon and spa owner has to master. We are talking about pricing. Now, I think we got to get one thing straight before we get into it. Financials are always going to be the backbone of the business. They're really what keep the lights on, they keep your products stocked and your team paid. We all know this, but pricing, pricing is where financials meet strategy.

And that is really, really important. It's where you decide if your business is working for you or working against you. Here's the thing. If your pricing isn't pulling its weight, you probably feel like you're running uphill with a suitcase that's just full of bricks. Like it can be so heavy for your business. You're fully booked, you're working your tail off, and yet you look at your bank account and you think, wait, where in the heck did all the money go? If that sounds familiar.

Don't panic, you're not doomed and you're definitely not alone. I have been in your shoes. You just need a pricing strategy that actually works. And that's exactly what today's episode is all about. We're going to break down the biggest pricing mistakes that salon owners make, how to fix them and how to build a strategy that supports your goals, your team and your paycheck. With that being said, let's get right into it. Chandra, I wanna talk about why pricing can feel like such a struggle.

even for experienced salon owners. The majority of us, we don't love dealing with numbers. For many of us, they are intimidating, so we just avoid them whenever possible. Unfortunately, that avoidance, can lead to some serious, serious problems in our business. In fact, it's one of the business biggest reasons that so many salon owners, they stay stuck behind the chair, they never pay themselves properly, and their studio barely breaks even.

When you're pricing without a plan or without a clear strategy, or you are just winging it without the right tools, you're setting your business up to struggle. It's exactly what you're doing. There are three common ways that salon and spa owners tend to approach pricing. And frankly, none of these are going to work for you. So let's dive into what those are and why they're probably holding your business back. So first, Chandra, we've got the copycat approach. Have you seen this before?

Chandra (02:35)
yeah, I think that's probably the way most people set their prices.

Brie (02:40)
For sure you see what the salon owner down the street is charging and you think well if it works for them it's going to work for me but here's the issue you don't know their cost you don't know their profit margins what if their pricing is completely wrong copying someone else can lead you straight into the same struggles that they're facing now we are not saying that you don't need to be aware of what your competitors are charging or what they're doing and we're going to talk about that in just a little bit.

but you cannot and should not be a copycat, 100%. Next is the guessing game. This one, I think, is one of the most popular. Chandra thinks copycat, I think guessing game. This is when you just throw out a number that feels right, right? Or you guess what your clients might be willing to pay for your services. Now, this may work for you in the short term. I've known a lot of people that have done it, and in the short term, it does okay. But long term, it is extremely risky.

If you don't know what your actual costs are, you're likely undercharging. And that is really just a fast track to working harder for less money, which is going to lead to burnout and a loss of passion very, very quickly. Chandra, what do you think about people that play the guessing game?

Chandra (03:53)
I just think they have no idea what they're doing. They're just kind of thinking for their clients' wallets, they're thinking for themselves what they feel comfortable charging, and they're just making up a number. And I think that's one of the issues when it comes to pricing too, is you have no idea why you even chose that number sometimes.

Brie (04:13)
Yeah, that's absolutely true. And we hear from salon owners all the time as we're coaching them, especially when it comes to their team, you know, I don't think people can afford this. So I didn't offer this or I didn't offer that we do the same thing with our pricing and it is not the right thing to do by any means. The third one is the one size fits all approach. I don't think this one is as common, but it definitely happens. This is when you price all of your services the same way.

regardless of any of the terms. This would definitely be the easiest way to go about pricing, know, just setting one pricing structure, calling it a day, but that can lead to really big issues, which are going to be really bad for your business and for you as the owner. The bottom line, if you are stuck in any of these three traps with your pricing, you are making pricing harder than it has to be, and it's likely costing you way, way, way too much money.

Chandra, out of these traps, the three of them, I know that you think the copycat is probably the most often used one. Which one do you think could really sneak up on salon owners faster than the others? And why do you think it's such an easy mistake to make?

Chandra (05:28)
think the guessing one definitely would sneak up the quickest only because you really, you have no idea why you're picking it. You don't, you're just kind of doing it out of feeling or doing it based on those things. And I think if you're not basing it off of a solid reason, it is going to bite you and it sneaks up very quickly and you have no clue how much money you're losing.

Brie (05:49)
Yeah, what we find a lot of times, honestly, is that we have people trapped in all three of these areas, right? They're kind of guessing and yet they're copycatting just a little bit. And then when it comes to their team, they do use the one size fits all approach on their pricing, which can really hinder your team's growth and your business's growth. Do you tend to see that quite often as your coaching as well?

Chandra (06:15)
I almost everyone, I mean everybody really doesn't understand how to do their pricing it seems like.

Brie (06:23)
What do you think when it comes to pricing can be the biggest downfall if you are stuck in these traps and you're doing this consistently? Yes, it may work short term. We've already talked about that. But let's say a year down the road or three years down the road, what is that going to do for a salon or spa?

Chandra (06:41)
I think you're going to be losing a lot of money and I think you're not even going to know that you're losing it necessarily and I think things change. Inflation happens, your costs go up, things happen all the time. So I think that that sneaks up on them and they just, they keep going thinking they have money in the bank but they don't realize they actually aren't profiting off of their services at all.

Brie (07:05)
100%. Well, I think now that we kind of talked about some of the common pricing mistakes, I want to shift gears and explore what a smart pricing strategy is actually built on. It's all about creating a solid foundation that truly supports your business. Every business is unique. We know this. And your pricing should be designed to reflect the specific needs of your salon or spa. It has to be. Smart pricing doesn't happen by accident.

It's built on a few key building blocks that really ensure your pricing not only works for your business, but also helps it grow. So let's break these areas down really, really quickly. Chandra is the queen of the first one and it is knowing your numbers. This one is non-negotiable. If you don't know exactly what it costs to perform each and every service down to the product time and payroll, then you're literally flying blind. Pricing without knowing your cost, it's like trying to run a marathon without shoes on.

It's never going to work. It's just not going to work. The next one is building in profit. Breaking even should never be the goal for any business owner. Pricing is your opportunity to create space for growth, whether it is reinvesting in your team, expanding your services, or let's be real, paying yourself what you deserve as the owner. It is time that salon owners accept the fact that profit isn't selfish. It's smart business ownership.

The next one is tailored pricing. Every service is different. Some take more time, some use more product, some require a higher level of expertise. If you're not accounting for those differences, you're either undercharging or maybe even overcharging and neither one is going to help you as a business owner. When you get these three dialed in, pricing stops being a guessing game and it starts becoming a tool for growth. You'll know without a doubt,

that every single service is contributing positively to your bottom line. Chandra, why do you think so many salon owners hesitate to build profit into their pricing and how is that holding them back?

Chandra (09:13)
think a lot of them, just don't know exactly how to come to that end result number, like what that should look like. And then I think they're also afraid. I think sometimes salon owners are afraid to pay themselves what they deserve and they're afraid to build that extra profit into the pricing because they're afraid of a lot of things from their team or from clients or whatever that looks like. But I think a fear is a big part of it for sure.

Brie (09:39)
Yeah, would agree with that. I don't know why salon owners are so fearful. We are some of the only business owners I know that let fear lead us 90 % of the time. It's and you hear all over social media, we've talked about this a lot, know, people are overcharging or you've got to charge your worth, but you can't gouge people and things of that nature. But there has to be a happy medium at the end of the day, it is a business and it has to be run like a business. You can't make

30 cents on the dollar when you're trying to perform a service. So that's just not a good thing to do. When it comes to tailored pricing, what would be a good piece of advice that you could give our listeners that would help them kind of understand how that works just a little bit?

Chandra (10:23)
Yeah, I think it's really like you said, knowing your numbers and tailoring your prices to fit whatever those costs look like. And it doesn't matter. You don't want to be out of completely priced out compared to every other business in your area. You do have to look at that, but you have to be tailoring it to your specific needs and what your salon is doing. think creating that based on you is where you're going to see that profit as opposed to just.

picking those numbers or guessing whatever you think sounds good.

Brie (10:56)
Definitely. So now that we've covered the foundations of smart pricing for services, we have to talk about retail pricing. Now, I know retail might feel like an afterthought these days between Amazon and Ulta and all the big box stores undercutting prices. A lot of salon owners think just what's the point? Why even bother with it? But the truth is retail, it's still one of the easiest ways to generate revenue and profit in your studio.

but only if you approach it strategically. I think gone are the days, Chandra, of just marking it up 50 % and calling it good. That was that way for what, for decades? And you just can't do it anymore. So let's discuss the three shifts that people need to make to get their retail game on point. The first shift that you have to make is stop competing on price. Instead, you want to partner with brands that protect the professional industry.

Look for companies that offer exclusivity or at the very least, maybe ones that price their products at the same level that you do, even if they're selling on platforms like Amazon. It's crucial, crucial that you work with brands that aren't undercutting you. Look for ones that are supporting you. Chandra, what are a few brands that you know that really, really support the professional beauty industry?

Chandra (12:17)
I think there's quite a few out there. You do have to search for them a little bit, but I think some of the distributors and things that you can look for as well are ones that are tailored to just the salon, right? And so I know what we carry in my salon there, for the most part, we have products that are only exclusive and that you can find on Amazon, but those companies set their prices the same. They don't allow people to go in and change them. So if you find them lower, it's usually,

like that diverted product or something weird. And so it's really having those conversations with your clients. But I know like we use Keune that's one of the ones that is a little bit more exclusive. Rossano Ferretti that we worked with, that was more exclusive. So finding some of those brands that partner with the salon owner, not with the masses and trying to sell it online and undercutting it and all of those things. But distributors are gonna be one of your best friends when it comes to finding those brands.

Brie (13:15)
Yeah, and that's actually the second shift. It's leveraging your distributor relationships. So a lot of salon owners, they don't realize just how many perks and rewards that they can get from their distributors. They offer so many. In fact, we just did an episode on this a few weeks ago and gave a ton of information about how your distributors can give you things like bulk discounts, loyalty programs, free product incentives. There's so much out there.

When you take advantage of all of these perks, it can help you lower your cost, boost your margins, and even turn free products into profit. I don't know who wouldn't want to do that. That's such a good thing. How do you work with your distributor and make sure that you are getting your bang for your buck in everything that you can get from them in your studio?

Chandra (14:04)
I think having the conversation with them about what can I get? What, what perks am I eligible for? What do I need to be eligible for these perks? Finding out what they will give you and just asking. I think a lot of owners are afraid to ask for those things. And I think when you just ask, you'll find that they will give you tons of stuff. And when they can give you free products that you can use to discount or run packages and you're not losing money that way.

And so when you ask those questions and just have that open door and search for distributors who carry products that are more exclusive and ask them like, where can these be purchased? Where, you know, what are the perks for me carrying this brand? And most of them will work with you for sure and give you tons of stuff back. Like it's crazy.

Brie (14:50)
Yeah, I agree. And I think that third shift that we're kind of talking about would probably be promotions, you know, discounting retail, it doesn't have to mean that you're cutting into your profits. Instead of just slashing those prices, you want to try bundling products together or pairing retail with maybe some of the services that you offer. This is actually something that I don't think we see enough of in our industry. They just don't pair those things together. For example,

offer a styling product as an add-on with maybe a blowout at a package price. This is going to add value without devaluing your product. Point of the matter is retail is not dead. It just requires a smarter approach than it used to. And when you stop competing on price and you start selling strategically, you can turn retail into a reliable source of profit for your business.

Chandra, what is an example of a very successful retail strategy that has increased profits in your studio?

Chandra (15:53)
I think being able to have the opportunity to mark them up higher because that gives us the opportunity to bring them down a little bit. And if you have to price match or something with a client that's looking at other areas, it gives you that wiggle room to be able to do it. So we definitely mark it up more than 50%. That way we know we have that wiggle room in there. And so, and we work with our distributor too to get those prices lower, which gives us at least 100

to 120 % markup sometimes, and the prices are still where they need to be that are competitive. That helped.

Brie (16:29)
Yeah, it's pretty,

it's pretty amazing. So many salon and spa owners, they just go to, which I know every state is different, right? But let's say Armstrong McCall or RDA or salon centric or whatever it is. And they just buy everything right off the shelf instead of actually having those conversations. And they are missing out on a ton, a ton of free product, a ton of points, a ton of money that they're actually losing.

Chandra, what's the biggest mistake that you see salon owners make when it comes to choosing those retail brands? And how could they go about starting to fix that right now today so that they can generate more profit in their business?

Chandra (17:11)
I think what you just said is one of the biggest mistakes. They just kind of grab things from whatever beauty supply and they're things that are sold in those bigger stores like Ulta and Amazon, Sephora, things like that. And you can't compete with that. And so I think you really need to look for those brands immediately, change what you're carrying and find something that is going to partner with your business and cares about your business and stop just kind of randomly approaching retail that way and just buying things.

my clients need this. So I'm just going to buy this one, one or two things instead of really having a good retail strategy where you, you know, you have a product that not everyone can buy everywhere and then being able to market up a little bit higher so that you can get those margins up.

Brie (17:58)
Speaking of that, think that's kind of funny. I have walked into salons before and seen Redken and Amika and five other brands, right? All sitting in their retail area. In my opinion, it just looks tacky. You have to kind of fine tune exactly what you're doing. If you want your retail, if you want to carry exclusive brands, you have to make your brand exclusive as well.

So how many products do you think or how many lines do you think a salon or spa should carry?

Chandra (18:32)
I think no more than two or three, like max. I think once you start oversaturating it with all those different things, it doesn't show that brand loyalty either from your salon, which people want that. They want to know what's the most important thing to you guys as the experts and what's something that they can't go find just anywhere else. And so when you have five different product lines,

I think it's just kind of confusing and people just don't get behind it. So finding something you can get behind as a business that's like part of your culture, I think it's going to be much better.

Brie (19:06)
Yeah, I agree with that 100%. So we kind of talked about the retail pricing, people need to get over it. You have to sell retail. It is what it is. So just kind of get that out of your mind and move forward. Now I want to talk about something that the majority of salon and spa owners just don't do often enough. And that's a pricing audit. This is something that we focus on in our program 100%. You want to think of this as your reality check. Just because your pricing worked last year,

or maybe even last month doesn't mean it's working right now, today. Here's the thing. Like Chandra said earlier, your costs are always changing. Product prices go up, your payroll shifts, maybe your rent increases, and suddenly your pricing is completely out of alignment. If you are not regularly reviewing your numbers and your data in your business, you might be losing money and possibly a lot of it without even realizing it.

A pricing audit is so important because it's how you catch those profit leaks. You guys hear us talk about profit leaks on this podcast all the time because they are that important. It's also going to make sure that your prices are still doing their job because people miss that point so often. Your prices have a job to do and they have to do that job well. Don't worry. It's not as overwhelming as it sounds. I can see people freaking out right now. It's not overwhelming.

Let's run through a quick breakdown of how you can get started with a pricing audit. First and foremost, you have to review your services. You want to look at your service menu and ask yourself, are any services costing more to perform than they're bringing in? Has the time or product required for these services changed at all? Chandra, when they are going through their pricing menu, one of the things that we see far too often is a menu with 950 million things on it.

How do they simplify that menu in their studio?

Chandra (21:08)
You have to go through your services and see what are the things that you're performing the most and what are the most popular services. And then really think about if you have a service on your menu that hasn't been done, you know, more than a couple of times in a year, then it might be time to nix that because when you simplify your services, it makes this so much easier and it increases your profits. It's kind of like having five products on the shelf.

It's just too much and people just don't purchase. Your services can be the same way, especially for your team. If there's so many things I got to offer, it makes it harder for them to focus on certain things. And so when you can whittle it down, I think, and you can really maximize those services that you're going to keep, you'll definitely see a profit increase.

Brie (21:55)
Yeah, definitely. So get all of your services, pick out the ones that have not been used in a really, really long time and just get those out of the way immediately. Then you want to find your weak spots. So you want to identify the services that you have left that have low profit margins. These are going to be really, really important to look at because they could be costing you a lot of money. You need to ask yourself, can I raise the price in order to make this profitable?

If you can't raise the price and it's not done quite often, Chandra should they still offer this service?

Chandra (22:30)
Probably not, or you need to make other adjustments to that service for sure.

Brie (22:35)
Maybe restructure how this service is performed and reduce the cost if possible. Would that be kind of how you would go about that?

Chandra (22:42)
Yeah, I would definitely look at, especially timing, service timing is one of the biggest things that you need to look at when you're auditing your services. If you have a service that's taking way longer than it needs to, or, you know, that's not matching up with what it's costing you for that time, then yeah, you definitely need to figure out how can we get the service timing down if you can't raise your price, or you could do both. Try to get the service timing down even just by 15 minutes and raise your price just a little bit, and you'll start to see that equal out.

Brie (23:13)
That's definitely one thing that we see a lot. The choreography is off all over the place. And here's the thing, it doesn't matter if you are working in a commission salon or if you are working for yourself, you have to have specific timing for your services. Because if you see three clients in a day, you're not going to be making the money that you need to make. And so if you have a team, you've got to go through service pricing for every single thing and every single level. And as your levels increase,

the service timing should decrease significantly. So definitely pay attention to that. The next thing is kind of the adjust strategically strategy. whether it is a small price increase or removing a service that's no longer worth offering, tiny tweaks are going to make a huge impact on your bottom line. For example,

When I went through this process in my own business and it was one of the first times, I realized that one of our most popular services, it wasn't breaking even at all. We were doing it over and over and over every single day. We were losing money. So I decided to do a simple price adjustment to make it profitable. The best part of it was we didn't lose any clients during the process. So we were able to make sure it was profitable, increase that, we decreased the timing for it.

and ended up making a lot of money and the clients, don't really just throw a fit like everybody thinks. Now, if you're going to increase prices by $55 per service, yeah, they may have a little bit to say about that. But when you do it strategically, it's not going to cause the chaos that you think it will. Regular audits at least twice a year, they are going to be the secret to staying ahead of rising costs and ensuring that your prices are always aligned

with your financial goals. What is one sign, Chandra, that a salon owner should do a pricing audit immediately, even if they've never done one before and have no idea how to do it?

Chandra (25:15)
I think your finances are gonna be the telltale sign there or your payroll too. If your payroll is really super high but you're not seeing any money really residual after that, you're just paying out every single penny that's coming in, that's a big red flag and that's a sign for sure that your pricing is not right. I definitely, yeah, you need to do this.

Brie (25:37)
It all boils down to the finances at the end of the day. We preach this over and over and over. There are so many things to consider when you are pricing your services, when you're pricing your retail in your salon or spa, and it's really important to remember that pricing isn't an isolated piece of your business. It's just never going to be. It's part of the bigger picture, one that includes your financial systems, your team structure, and your overall business strategy.

This is why a business strategy is so important. I like to think of it like this. Let's just say your pricing is the engine. You have a car and your pricing is the engine, but your systems are actually the rest of the car. If the systems around your pricing, like tracking your cost, managing your promotions, monitoring your team's performance, your services performance, if those aren't running smoothly, it doesn't matter how great your pricing strategy is.

That car, it's not going to go anywhere. It's going to stall and be stuck. Let's just say you've set your pricing, but you're not tracking where your money is going. You won't know if your pricing strategy is actually working or not. Or let's just say your pricing is perfect, but your team isn't doing their job, right? They are not upselling. They're not cross-selling. They're not offering add-ons. Then there is still untapped revenue slipping through the cracks every single day. As business owners,

We should never, never, never, never leave money on the table. This isn't about being greedy. It's about running a business. This is why pricing and systems go hand in hand. There's no other way to go about it. When you have the right systems in place to track your financials, to train your team and to monitor their performance, your pricing strategy is going to have a solid foundation to ensure that your salon or spa is going to succeed. Here's the best part.

When your pricing and your systems are dialed in, everything is going to start falling into place. You're no longer stuck guessing. You're not scrambling. You're not constantly putting out fires. Instead, you are running a business with clarity and with confidence, knowing that every service and every product is actively contributing to your bottom line. When these pieces align, you are finally going to see the light at the end of the tunnel. You can probably step out of that day to day employee role.

and fully embrace your position as the leader and owner where you are meant to be, driving the vision and the growth of your business forward. Chandra, what is one system that salon owners should prioritize alongside pricing to see the biggest impact on their profits?

Chandra (28:24)
I think your team performance is a really big one. It's really looking at how are they performing those services, how much product are they using in those services, and how long is it taking them to do those services. I think that's a big system I would start looking at is really focusing on your team performance and getting them dialed in. That way, you know your pricing is going to work out.

Brie (28:48)
Absolutely. And what would you say about the financial tracking systems that need to be in place in order to make all of this come together?

Chandra (28:56)
Yeah, I mean, when it comes to the financial part of it, you need to know your numbers. You need to know how much each service is costing you. So I would definitely start looking at that, start breaking down what everything that's included in that service. So it's going to be everything from your rent, your product costs, your payroll, all of it has to be part of that price. And I think when you can start creating a system around tracking all of those things and then building that into what that price looks like, then you'll have it.

solid price knowing you're going to be profitable and building profit into that price as well.

Brie (29:31)
100%. I feel like we covered a ton today in a very short period of time. So let's pull it just all together really, really quickly with some key takeaways and a few questions that you probably need to ask yourself right now. First, we broke down the biggest pricing mistakes, copycatting, guessing, and using that one size fits all approach. If you have been doing any of these things, stop, but don't worry, it's fixable. You can do this.

It starts with taking a closer look at exactly what Chandra just said, your numbers and getting intentional about your pricing. Then we talked about the foundations of smart pricing, knowing those costs, right? Pricing with profit in mind, tailoring your prices. So every single service is going to support your bottom line. We also dug into some retail strategies. You can't compete with the big box stores. It's not going to work. You have to change what you're doing.

So here's some questions that I want you to ask yourself and be honest. Do you know the exact profit margin on every service you offer or are you just crossing your fingers and hoping for the best? When was the last time you reviewed your expenses and adjusted your pricing? Are you paying yourself as the business owner, not for performing services, or are you just scraping by on what you're earning behind the chair?

This is what we see far too often, right, Chandra, they are scraping by. Like half of what they're making behind the chair goes to keeping the lights on and then they give themselves a tiny percentage of that. Is your pricing intentional and strategic or are you just winging it? If these questions made you stop, if they made you think it might be time to take action. At the Beauty Biz Agency, we have developed an amazing formula that we call the BBA Pricing for Profit Plan.

It is a proven method that ensures you're covering your costs, paying yourself what you're worth and what you deserve, and building a profitable, scalable salon. So if you are ready to take the guesswork out of pricing, eliminate financial stress, and finally create a structure that is going to support your business and your paycheck as the owner, I'm going to keep throwing that in there, please reach out to us. We would love to help you get there. Chandra, before we wrap this up, any final words of wisdom for salon owners

who are ready to rethink their pricing.

Chandra (31:57)
I think it's just, really is sounds daunting, but it's really a simple thing. And if you can get your pricing dialed in at the end of the day, like you will see a huge change in, your stress and in just supporting your business. Like you're not going to be running constantly trying to, you know, try to make that money when there's not enough money. And I feel like that's the biggest challenge I see most salon owners get themselves in that trap. And so I think it's simple. Don't be afraid of it. You know, just,

tackle it head on and see where you're actually at. You might be surprised.

Brie (32:32)
That's a wrap guys. If you enjoyed this episode, make sure to like, share, and subscribe. You can follow us on all social media platforms. Chandra, how do our listeners connect with us?

Chandra (32:42)
reach out to us on Facebook or Instagram at the Beauty Biz Agency. You can also shoot us an email at admin@thebeautybizagency.com We would love to hear from you guys and see how these strategies are working for you once you start putting them in place. And if there's any other episodes or anything you'd like information on, let us know. We can create something around that.

Brie (33:02)
And don't forget to visit our website at www.thebeautybizagency.com for resources, coaching options, and tools that you can implement immediately to grow your salon or spa business. Now go out there, make bank, run the show, and ditch that chair. Until next time, keep slaying those business goals with a whole lot of swagger.