Start Making The Money You Deserve with The Hourly Pricing Model
Welcome back babes to the THIRD and final part of our Salon Scale blog series! And you are about to get coached in making more money in your BIZ babes!!
Now we are FINALLY going to dive headfirst into the #perfectpricingmethod and Salon Scale’s Hourly Pricing Model, so you can start making the money you DESERVE girlfriends!
The Problem + The Solution
We know that color is unpredictable and our customers really should only pay for what they're using right? And it really should be on a variable rate.
While we're using only $8 worth of color on some customers, we're using $80 on others, so we just simply can't average this anymore. And worse, we can't just include it in the price that's going to significantly change your profit and what it will be on each color.
As an industry, we have to talk about this! Do we really want to keep guessing what we're going to make each day or do we want to know?
These customers are already used to this in every other industry – just like getting ice cream, getting work done on your car, or really anything else!
So it's about time we update our model. It's time to separate those parts from labor and really exercise our minds about going hourly. That’s why Salon Scale created the Hourly Pricing Model for us!
The Hourly Pricing Model
How do I determine my price per hour?
What you want to do is take your total monthly service dollars, divided by your amount of hours worked.
We can't charge our customers by simply putting the parts and the labor together anymore, because we are missing out on thousands of dollars because we not allocating the costs properly.
We cannot run our books like this anymore!!
That is exactly how you break down your hourly rates and how to separate your parts from labor. And I promise you, once you take that step in that direction, you're not only going to be more profitable, but you're going to be sure every single time you charge a color, that you're making profit.
Make sure you schedule yourself even a reminder in your calendar that every year you look deeply into these numbers and make sure you're always covering your costs, and especially if the color lines are increasing their pricing.
So do you, and if your labor needs to increase, you also increase that due to your demand. And no matter what you do, every single year you'll be on top of this. And you'll never question ever again if you're charging what you should be.
Make The Money You Deserve
Wow. Mind-blown you guys.
This can be a little bit scary and really exciting but it makes so much sense. It so innovative and modern, but it's honestly just catching us up with where we should be with the rest of the world.
Every year you're going to take that stress away from, am I pricing things properly? Am I increasing at the right rates and is everything covered?
And we can say yes, it will be. You will be making the money that you deserve, every year.
We are so excited for the future of hairdressing!