What’s the secret to charging top dollar in a small town, Manhattan, or anywhere else for that matter? Know how to get every client to see how incredibly valuable you are.
If we asked a stylist from a big, small, or even medium town if their community is overcrowded with salons, they would say yes. But it’s not about the volume or the competition; it’s all about you, how you handle your business, and the limitations in your mind.
To build a successful business behind the chair in any community (especially a small one), you must be a standout. To be a standout, you must know your perceived and true value.
Price yourself properly
Do you know what your worth is? What about what you should charge? If you researched local salons to pick your prices, know most make it up or copy what others do because they don’t know how else to do it.
That’s a terrible business strategy. Don’t do what everybody else does or what you think people in the area will pay. Instead, use a set formula based on stats, facts, and live data, including these three factors:
-
Location. Your city and state are important, but so is the micro-location (your salon’s location in the city).
-
Level of experience. Psst: level of experience no longer equal years behind the chair.
-
Demand on your time. How badly do people want to see you? If the demand is not there, it’ll greatly affect your price point.
There’s a ton of different things to look at when determining your price point, but what your competition is charging or what you feel you should charge can’t be factored in. It must be statistical, not emotionally based, or something you randomly made up. When you charge your worth, you must know what your worth is.
People complain about cost when there’s no perceived value
Knowing your worth and your actual value is awesome. But it’s irrelevant unless they match your perceived value because charging your worth only works if your clients perceive it to be accurate.
You might be educated and talented, but if your salon’s guest experience makes clients think they’d rather save $50 by going to the salon down the street, you’ve got a problem. Why are they choosing to save $50 for a mediocre result?
It’s not that they want a terrible haircut to save money. They think it’s not worth paying $50 more to see you. The perceived value is not there. You know your worth and know you’re better than the shop down the street, but your guest doesn’t get it. And whose fault is that?
Not theirs. It’s yours.
Here’s the deal: If clients perceive your value to be accurate, they’d pay it and more because it makes sense. But something’s happening that makes it illogical.
For example, every time a new iPhone comes out, even if its outrageously expensive, people line up on the pre-sale list to spend $1500. They must be first in line even if they already have a working phone, even if they must pay nearly two months’ house payment or more because of the perceived value.
You must do the same thing in your salon. If you don’t, clients will buy the Nokia that just makes phone calls and sends texts. If you want to be the Nokia of your market, totally cool. That perceived value doesn’t need to be there. But if you’re going to be the Samsung Galaxy or iPhone that people put on a payment plan to fit it into their budget, the perceived value has to be there.
Create the cutting edge
Think about what makes you a true showstopper. What makes you special?
If you think you’re more talented, educated, kinder, or your salon is cleaner, and your shampoos are amazing, know all those things are basic. A lot of salons do good work but that is not enough to increase perceived value.
If the consumer can’t see why you’re better than the salon down the street, they won’t get your value. You must make it clear to consumers why you are the obvious choice, that you’re special, that you have the cutting edge.
To make sure you stand out, go through these steps:
1. Google yourself. Know what comes up when you search your name and how long it takes to find you. If it takes longer than a minute (or you aren’t showing up at all), that’s a real problem.
If old or unused profiles come up, like a StyleSeat account you don’t use anymore, delete them.
2. Search your name on Instagram and Facebook to make sure you come up in the top results.
3. Audit your social media profiles. Are you posting regularly? Are the images showstoppers? Are there any small shifts you can make for a big impact (improve captions, photos, profile and cover photos, service menu)? Are the links going back to your website working?
If you want to charge your worth, you must create the cutting edge. But if your Facebook is just okay, your website is always down, and consumers get a bunch of dead links when they Google you, the perceived value isn’t there.
Without a stellar website, a flawless search experience, and a beautiful social media presence, you don’t have the cutting edge – and the perceived value – you need.
4. Create culture
If you’re frustrated that consumers drive to the big towns for a big town salon experience, know it’s because they aren’t finding that experience in your salon.
That’s the gap you need to fill through your online presence, marketing, Instagram, Facebook, and your website. It should be obvious that clients get an exceptional experience with you that they don’t need to leave town for.
Create a culture where people feel like they were pampered for the entire day without having to drive an hour. You would be amazed at what people will pay not to have to drive, stay local, feel surrounded by people they care about, and support their community.
It’s not that people do not want to pay your worth; they do not see it.
5. Don’t discount (or negotiate) your prices
If your stylists feel like they need to undercut themselves to get business, you’ve got a huge problem. You’re creating a culture of “book now, negotiate the price later.”
Is that what you want people to think about your salon? No, you want them to say your salon is unbelievable and worth every penny. They don’t even bring up the fact that you’re more expensive, just worth it. That won’t happen until every single person on your team sticks to their prices and charges what they should without emotional discounting.
Once your guests perceive your value, you can fully charge your worth as a salon owner or stylist. Create the culture, decide your cutting edge, don’t discount your prices, and know that once you set your perceived value, clients will line up for appointments.