As beauticians and entrepreneurs around the world step into the sunless industry we all have that common question in mind, “How much do I charge for my services?”.
Although there is no set formula on how to price your services and products, there are a combination of factors to consider to ensure your price points are structured correctly.
Scope out your completion to strategically price your services. What is everyone else charging? What’s the lowest cost of service? What’s the highest cost of service? You should market your services between that high/low mark. Having a competitive price point is a great leg up on your local competition. Be careful when creating a price point extremely low, as it could discredit your service.
Location will play a big factor in pricing your products and services. Ask yourself these key questions:
- Where do you plan on executing your services?
- Is this area densely populated, or more rural?
- Will clients have to drive out of the main city/town?
- Does this location have much foot/drive by traffic?
If your location is more isolated, it could potentially inconvenience consumers and ultimately result in a loss of business. Having a location in a densely populated area, or in a common area of town may be ideal for a higher standing on the pricing ladder.
If your sunless business will be mobile, technicians should always factor in drive time, gas and distance into their pricing. When pricing services, try setting a base price and be sure to make your clients aware that this base price does not include the time, gas and distance factors. Technicians should collect additional information to accurately add travel expenses to the quoted tan price. Always give your client a final quote including travel expensive before venturing to the location where the client will be receiving their service.
Another option for mobile technicians is to set a price scale for the service. Maybe the average price of tanning service is $35 after travel expenses are applied. Let clients know verbally and include on your price sheets, that tans range from $25-$55. When creating a price range, it is always best to give clients a larger maximum price so when you do tell them their service price, they are under the impression that they’re still getting a great deal!
Your pricing strategy will largely depend on your clientele. Be sure to analyze what type of clientele you will be performing your services on. Will you have a diverse type of clientele, or will you focus on the higher end clients only? What are these customers willing to pay? Meet clients in the middle. It’s not necessarily a good idea to charge clients the maximum price they’re willing to pay. It is also vital to know what your client is paying for when they come to you for services. What is it that the client is paying for? Is it the customer service you provide them? The quality of the service? The location? Or the quality of product you use for your business? Customers are willing to pay when they are offered something they can’t get elsewhere, whether that be service, or product related.
Do not be ashamed to want to make a profit! Profit is essential to running a successful business. Take into consideration price of product, supplies, marketing materials and any additional tools you use to successfully keep your business running. Pricing of services should cover these essential expenses while still providing you with some green!
Know your worth
Lastly, know your worth. Do you perform and provide the perfect service?
Be sure to give yourself the deserving credit when developing your service/product prices. Setting your price point too low may cheapen your brand/reputation. Don’t be afraid to set your pricing a bit higher if you believe you provide excellent services worthy of that price point. The sunless Industry has grown tremendously over the years and it will only continue to flourish. Enter with confidence! Equip yourself with the necessary knowledge and tools to make your business a successful one. Always keep in mind, pricing is always adjustable as you continue to grow.