One day you woke up and decided you want to be in the salon industry, whether it's as a hair stylist, esthetician, barber, or masseuse. Maybe you've been dreaming about it since you were a little girl or boy. So you enroll in school, pay your money, put in your hours, then graduate. Now your'e all on your own wondering where to go. You do your job hunting and land your first job! After a couple of years maybe you realize it's not as rewarding as you'd thought it be, or you wonder if you could make more money. Either way, you probably didn't think that your new found career would have as many challenges as it does. Let's be clear the salon industry is tough and competitive and you have to learn some new skills in order for it to be the rewarding career that you thought it'd be.
Step 1: Master your craft
If you're fresh out of school then it's time to master your craft. There is a lot of great stuff that you learn in school but nothing beats real world experience and lots of it. Go to shows and conventions. Go to classes and watch youtube. Learn your craft and get really great at it. This will ultimately determine how much you can charge, so be the best you can be!
Step 2: Charge a competitive price
You have to charge what you're worth. You should regularly check what other people are charging and charge accordingly. Be honest with yourself as well. There's nothing wrong with admitting that so and so is better then you are, or that so and so's salon is nicer than the one you work at. Both of those things effect the price that you can charge. But don't be a humble harry either and charge too little for your services. If you are good and your services include more than so and so's, charge accordingly! Know your worth!
Step 3: Get your books full
While you are always mastering your craft, and after your prices are in line, now it's time to get your books full. I could write an entire book on this topic alone. First is to set a goal of how many clients it would take to fill up your books. The second thing is to offer specials that go above and beyond what your competitors are doing. One free service isn't going to do it. Offer 10-20-50 services at cost or free. If you can afford the cost of product that it would take to do free services then that promotion will get you a lot more attention. Then get really good at rebooking. There is a ton of information on the internet about rebooking. If you only rebook 50% then you now have a hand full of new clients! I think you will be pleasantly surprised at how much attention these types of services get and how many of them will tip more than usual, and also rebook at your regular price. It shouldn't take too long to get your books full with this strategy.
Step 4: Price increases
If your books are 75% full (30 hours a week) or more then you need to raise your prices! This is the forbidden topic in the salon world. It's because of the fear of the unknown. The fear that all of your clients are going to leave and you'll be left with nothing and having to start all over again getting your books full. Or the fear of a handful of hard reactions that you may get from a few clients. This is not true as long as your price increases are incremental and justified. Very few clients will give you negative backlash. Most of the ones that cancel will just say thank you but I can't afford that. If you are not raising your prices every year at least 5% for inflation then you are making less money for the same service. You are your own business and successful businesses increase their prices with the market. Once your books are full (75% or more) you should increase your price no less than 10% and no more than 25%. And no less than 6 months in between increases. Now the scary thing is that all or most of your clients will leave you. This is not true so do not believe that lie. On average only 5-10% of your clientele will leave because of a price increase. 15% would be extreme and only if you went up by 25%. If you'd like to do a test and only raise your prices on a handful of clients that would be a great idea. But do not get scared if one or two clients quit. This is normal and expected. Measure your time not your clients. If you're working 30+ hours a week and making $2000 and you increase your prices and your weekly income drops to $1750 and now you're only working 25 hours then you just raised your hourly pay from $65/hour to $70/ hour. That's a win and that is the goal.
Step 5: Rinse and repeat
This is a repeatable process. Once you have raised your prices and lost a few clients then it's time to get your books full again. Start over from step 2. Make sure your new prices are in line and competitive with your demand. Then offer specials to fill your books up again.
Whether you're fresh out of school or you have been in the business for years these steps are a must of you want to excel in your career. They do not teach you these things at hair school, or at your commission or booth rent salon. Yet they are a crucial piece of the puzzle if you want to have the rewarding and profitable career that you have always dreamt of having.
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