3 Pricing Mistakes to Avoid as a Business Owner

Have you ever wondered how you should be pricing your services? Have clients ever ghosted you after you gave them your rates? Do you feel uncomfortable giving out your prices? If so, it’s probably because you don’t know how to price your services. Here are 3 pricing mistakes to avoid or stop doing:

Charging what the Market is Charging

If you’re like most beauty professionals, before setting your rates, you go on your competitors website and social media to see what they’re charging. You might even copy their rates or charge a little less.

This is NOT the way to go about it. Why? Because what if that beauty professional is charging below their worth and you’re copying them. Now, there’s an industry full of people that low ball each other and charge below market value.

Your prices need to reflect your business. Some beauty pros charge more for their services because they have a team. Some charge less because they use low to mid-end products. You will never know this just by copying their prices from their website.

Before determining your prices, ignore everyone else. Seriously! Ignore what you see others charging and don’t be tempted to go on your competitor’s website. You do not need to copy others’ prices or even lowball because your services, packages and prices should be unique to how you do business.

Selling Service not Value

All beauty professionals should be selling value, not the actual service. Most beauty professionals and salons sell their services without considering the value they bring to their clients’ lives.

If you’re a stylist, you’re not selling a hair cut, you’re selling confidence! If you’re a photographer, you’re not selling photos, you’re capturing clients’ most precious moments.

When you only sell services to clients, they think that’s all they get and so that’s all they’re comfortable paying for. However, when you sell the value that comes with that service, they feel comfortable paying so much more.

If you need a fancy and aesthetically pleasing way to offer your value and services, check out our service guide template. In this editable template, you’ll be able to point out the value you provide to your clients and prices so that they feel more comfortable paying your rates. If you want a more appealing way to offer your new prices and get paid more then this is for you!

Not Determining your Costs or Expenses

Have you ever sat down to determine how much product you utilize on just one client? Have you ever calculated the costs of product you use on clients? If you are not sure how to do that, check out our free cost of service calculator! It only takes 10 minutes to do and will save you a fortune.

Once you calculate the average costs you spend on just one client, always factor in those costs and expenses prior to setting your rates.

So if you spend an average of $15 worth of product per client, you should be considering those costs BEFORE setting your rates. This will help you ensure you’re making a profit.

Determining your prices can be a long and daunting task, but it’s an essential part of your business. Knowing how to price your services isn’t something that happens overnight so take your time with it.

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Check out: How to Price Your Services!