If you’re struggling to get clients in the door or you’ve lost more than a few of your previously loyal clientele, we suspect one thing may be to blame:
Perceived value.
Simply, your perceived value isn’t worth it, and clients are going where it is.
And if you say, “…but I’m charging my worth,” we hear you, friend. But your worth and your perceived value aren’t matching.
Your perceived value is the difference between a prospective customer’s evaluation of the benefits and costs of one business or opportunity when compared with other business or opportunities.
For example, it’s when a client is trying to decide between your chair and the stylist down the street.
And listen, two things are going to be key when it comes to thriving during the recession: client retention and perceived value. That’s why it’s more important than ever to ensure your perceived value meets (and maybe even exceeds!) your worth.
How? Let’s dig in.
Know the difference between perceived value and your worth.
We talked a little bit about the difference between perceived value and your worth already, right? But why is it so important?
Basically, knowing your worth is great, but it’s irrelevant unless your perceived value matches.
A.k.a., unless your target market client looks at your services and sees major value in your prices.
If a guest comes out of your salon, thinks over the experience they just had there, and decides next time they’ll just save $50 by going to the salon down the street, it’s not that they’ve suddenly decided they want a bad haircut. They don’t see your value as worth $50 more.
You have to ensure that your perceived value matches your worth because only then will those dream clients justify the cost in their mind because it’s the only things that will deliver the result they want.
Price yourself properly
True story: Most stylists and salon owners today make up their pricing. And no, looking up what other beauty pros in your area charge and basing your price off of that doesn’t mean you’re priced properly because where did they get their prices? Then everybody’s just making up prices because…well, that’s what everybody else is doing.
You have to price yourself properly using stats, facts, and a real formula, not emotion or by Googling what’s happening next door.
The tried-and-true formula Britt teaches in Thrivers Society uses three factors:
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Location. Yes, this means your city and state, but also your microlocation, like your salon, its decor, amenities, etc.
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Level of experience. This doesn’t mean years behind the chair. You could only have two years behind the chair but be the top texture expert in your area.
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Demand on your time. How badly do people want to get in to see you?
Did you notice there’s one factor that’s not in our formula? Your competition. What your competition is doing has nothing to do with your business, so keep your eyes on your own paper, friends.
Setting proper pricing in your business is very statistical. We dig even deeper into how to price yourself properly in Thrivers Society’s Scaling Stylist Method!
Create the cutting edge
What makes you a true showstopper?
Seriously. Answer that question right now, whether you type it in your Notes app, scribble on the back of a Starbucks napkin, or journal it out.
Here’s the thing: you have to make it crystal clear to the consumer why you are the obvious choice because when you do, you dominate.
So what makes you stand out?
Hint: Answers like “we’re more talented,” or “my shampoos are amazing,” that’s great…but that’s basic. Dig deeper. Your work has to feel a cut above.
Got your cutting edge? Good. Now, how do you show that?
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Google yourself. See what comes up
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Improve your social media presence
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Make sure your links are live on your website
Remember, small shifts make a big impact, friend.
Don’t negotiate your prices
Here’s the hard truth: if you undercut your prices, you’re setting yourself up to be the hookup stylist.
Instead of clients saying how incredible you are, they’ll say, “Go to Britt and don’t forget to negotiate the price!”
And trust us…that will spread like wildfire.
Instead, make sure you price yourself properly and stop discounting to make sure your perceived value matches your worth. Because until you do, you can’t expect any clients to pay full price.
Making sure your perceived value is in place takes a little extra work, but trust us: with the current economic climate, this is a step that will help stabilize your business and help you not just survive but thrive!
If you want to dig deeper into how to position your perceived value in the current uncertain economic climate, join Britt July 26–28 for Hair Stylist Bootcamp to learn the three steps to 30% more revenue!
