How do I determine what to charge for a service?
Is there a mathmatical solution to finding what to charge for spa services? product+time= client cost? (and how do I do this from the back bar products?)
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Replies to This Discussion
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Permalink Reply by Teresa Ochoa on
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Hi, well one thing you may want to do is research other spas, or estheticians in your area and see what they charge, I did that and also based it on product and time..you don't wanna go too high or too low...
don't undercharge, you are worth alot, and so is your time ;o) good luck!
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Permalink Reply by Crickett Enos on
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There are a lot of factors that go into placing a value your services. How long have you been in the business? How much continuing education do you have? Are you specializing in any specific treatment(s)? Are you in a great location? It isn't like pricing for retail where the general equation is to take the cost and double it. You can't do that with services as you would just be taking the cost of the product and your overhead, and doubling it, which may be really good in some cases and not so good in others.
As Teresa suggested looking at your competition is a great place to start. Not EVERYONE that offers the services you want to offer is your competition. Choose salons that are similar in "feel" to yours. For example if you are at an upscale salon in a very good location, don't compare yourself to a "discount salon" that may be near you, they are not your competition.
Hope this helps. Good luck to you, let us know how it's going.
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Permalink Reply by Carrie Patrick on
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When you have an idea of what competitors in your area are charging for the same thing, that will give you an idea of whether you're aiming too high or too low compared to them. But you should also figure out what is the service price that will allow you to make a profit. You would do this by adding up all your business expenses for a month (this includes everything - product, rent, utilities, office supplies, any advertising you do, laundry, gas, EVERYTHING!) Then, divide that total $$$ amount by the typical number of client visits you have in a month. That will give you the amount of money you need to be making per client visit to break even.
Then, if it turns out you're making roughly that amount or less for each client visit, you're going to have to find a way to either reduce your expenses or increase your earnings per client (which might mean increasing your rates, or increasing the services that bring in more money/dropping the services that don't, or adding more clients in general, or any combination of those).
You have to know what the market in your area is willing to spend, but also what the actual value of your services is, and see if you can make those two aspects fit together.
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Well put Carrie:)
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Permalink Reply by Sheila Gordon on
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Definitely agree with checking out your surrounding spas to determine. You don't want to be much less or much more, maybe even use the same prices. Also, your skin care line should be able to give you a cost breakdown of what each treatment will actually cost you. Sometimes the line will even give you a little spreadsheet for each back bar item and say how many treatments you can get out of the bottle. One of the toughest parts with getting started...what to charge and what services do you offer. Keep us posted.
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Permalink Reply by Diana Sue Whitehair on
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Thank all for your wonderful, and very helpful input :) Each one of you have really great points, and i will follow through on each of your ideas. Thank you bunches. I am feeling a little ovrwhelmed bc I took a 2 yr hiatus to take care of an elderly friend. And I feel like I am relearning everything. I have a lot on my plate.Not only am I the head Esthetician but I am relearning the lingo, pricing, making the menu, running the spa, and over seeing 13 employees. It is a lot. I am very capable of doing it. Its just I feel like alot has been thrust on my plate. Its everything I have ever dreamed of. I know I will feel more confident, and knowledgeable after my first product knowledge class :) But until Dec 3 I'm gonna have to wing it... Any suggestion on this? I'm going in w/o any training, I am the one putting the training in to place...maybe i am overthinking this, and it will all come rushing back when I start the motions... I hope. So say lots of prayers for me, Opening is this thursday Nov 15... and I have to be quite honest, I'm nervous as hell! Any suggestion will be greatly appreicated :) Thank you all again and god bless you. Have a wonderful evening.
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