2 mins
Earn your WORTH
HOB Salons Director, Clive Collins, urges that although it may seem like a big step, the time to increase your annual salon prices is now
In a world that seems to be changing on a daily basis, I am writing a clear message to my fellow salon owners, managers, hairdressers and friends to say that now is the time to start charging what we are worth.
With increases in rents, rates and bills (I could go on), at HOB Salons we have initiated the ‘£1 test’; so, for every pound we take in our tills, 90p is going out leaving 10p as profit before we pay corporation tax.
We need to stop discounting, as this doesn’t encourage loyalty from clients, and gives a perception that our services are ‘cheap’. Secondly, our wage percentage needs to be kept under control - anything below 50% should be our target
With VAT at 20%, along with other costs, there are many salons that will struggle to survive unless we all, as an industry, start to charge proper prices for our services.
We are also in the midst of a recruitment crisis, with fewer 16-year-olds choosing hairdressing as a career and the effects of Brexit and Covid forcing staff to either go freelance or leave the profession.
As an industry we need to stop discounting, as this doesn’t encourage loyalty from clients, and gives a perception that our services are ‘cheap’. Secondly, our wage percentage needs to be kept under control - anything below 50% should be our target.
It’s time we recognise our own worth and increase our prices accordingly. Salons that have stylists and colourists that are fully booked should increase blow-dry services and cut & blow-dry services by at least £5, and salon owners and managers by a minimum of £10. Colour services also need to go up by a minimum of 5%-10%, allowing for increased stock prices and training costs.
Now is the perfect time to add an annual price increase so you can have a profitable quarter leading up to Christmas. January may seem the obvious time, but it is a quiet month and an expensive time for your cashflow. Don’t be afraid of upsetting or losing clients – your clients come to you for your expertise, the experience, the relationship and for the few that you might lose, you will gain others. If we all do this it will elevate our industry, attract new talent and ensure that salons won’t go out of business.
ABOUT THE AUTHOR
Clive Collins is one of three Directors of HOB Salons, a multi-award-winning salon group with 17 branches in England. With the group winning numerous business awards, Clive proves to be a great example of driving the development of the salons and staff by spotting potential.