Episode 65: Why You Should Be Charging Like a Plumber
This episode is powered by SalonScale. TO GET YOUR FREE SCALE, AND FIRST MONTH FREE CLICK HERE!
This is the first episode of a 5-part series with SalonScale. If you missed the SalonScale introduction episode, click here to listen! . This series is filled with free coaching on pricing and so much magic!!
SalonScale is an app that will tell you the exact cost of hair color being poured for every bowl mixed so you can start pricing your services more accurately and feel confident knowing that everything leaving your color bar is being paid for.
In today’s episode, Elizabeth Faye sits down with Alicia Soulier, CEO of SalonScale! We met Alicia at our Portland Hair Love Radio Podcast Tour, and immediately clicked! They get to the nitty gritty about why you should be charging like a plumber. What does that mean exactly? It means that you need to separate your Parts and Labor to find your price you should be charging your clients!
2:00 WHAT MAKES SALONSCALE DIFFERENT?
There are so many different people trying to tell you how to price and it is SO confusing.
SalonScale is changing the game because it takes out ALL the guesswork!
They have created a program for both the stylist, and the salon and they have “dumbed down” the pricing into 2 parts… PARTS + LABOR.
Because of this monumental breakthrough, we are changing our entire pricing method in Workshop in a Box! (Click here to get on the waitlist)
We are so passionate about spreading this knowledge so that those in the industry can stop stressing about what their prices should be, and they can once again enjoy their craft!!
6:00 WHY SHOULD HAIRDRESSERS CHARGE LIKE PLUMBERS
Price = Parts + Labor
Bottomline = What you are left with at the end of the day - that goes towards your profit! This is BEFORE taxes. This number needs to be consistent!
If your parts are increasing $10-$20, that’s taking away from your profit!
It’s important to separate your overhead and parts
Overhead= All your operational costs (rent, water, power, software, etc.) This average is around 35%.
So just like the plumber… You want to separate your parts and labor, because then it is SO much easier to price your colors. Once you know exactly how much product you’re using, you can then add in the labor, and BAM! You get the price!
A lot of people have an “idea” of what they make, but then when they look at their bank account, and the numbers aren’t matching up!
In the past.. There was never a good way to track the price of color. You could track what you buy, or you could do it by hand and use a scale, but it was too much work. Now there is SalonScale and you don’t even need to think about anything!!
11:30 HESITATIONS ABOUT THE LABOR PRICE
Most stylists think that they’re getting the most money for extensions, and less for balayage and color.
You need to figure out what your base labor price is (hourly rate)
Think about HOW much experience and education you have to provide that service, and how many minutes/hours you serving your client!
Your time is worth SO much more. Remember.. Your worth is your labor.
Labor goes up with the more education, and experience you have. You track this with KPI’s (Key Performance Indicators) By looking at this… You’re able to look at the services you provide, and your talent, and then you can determine your prices (and raise them if you need to). You can then base these decisions off of those KPI’s, instead of emotional aspects like.. “I didn’t make enough money last week so I need to raise my prices.”
Stop looking at your revenue! You need to look at Profit First. (Read the book! It will change your life!)
16:45 GET HAPPY, GET SNAPPY!
Learn to charge like a plumber, and be happy about it!
We are so excited for you to starting changing your with with SalonScale.
Don’t forget to share with your friends. :)
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