Latest / Salon Success Secrets — The podcast for salon owners who are done hustling harder and ready to break their revenue ceiling. / The Price is Right -Or- Is It? How Poor Pricing Strategies Can Sink Your Salon

Transcript

The Price is Right -Or- Is It? How Poor Pricing Strategies Can Sink Your Salon · Salon Success Secrets — The podcast for salon owners who are done hustling harder and ready to break their revenue ceiling.

• 0:33
  SPEAKER_00: What if I told you your pricing might be the very thing keeping you broke?
• 0:40
  SPEAKER_00: Not because it's too high, but because it's too safe.
• 0:45
  SPEAKER_00: What you're saying?
• 0:47
  SPEAKER_00: Most lawn owners aren't underpriced because they just don't know numbers.
• 0:52
  SPEAKER_00: They're underpriced because they're afraid.
• 0:55
  SPEAKER_00: They're afraid of rejection.
• 0:57
  SPEAKER_00: They're afraid of losing clients.
• 0:59
  SPEAKER_00: They're afraid of being too much.
• 1:03
  SPEAKER_00: But here's the truth: you cannot build a million-dollar business with minimum wage confidence.
• 1:12
  SPEAKER_00: That's so good.
• 1:13
  SPEAKER_00: And today we're going to be exposing how poor pricing strategies quickly and quietly sink salons and how bold, confident pricing actually transforms not only your profits, but your position in the marketplace.
• 1:31
  SPEAKER_01: Yes.
• 1:32
  SPEAKER_01: So I love that, Jen, what you just said, how you know competent pricing truly transforms your profits, but also your position in the marketplace.
• 1:43
  SPEAKER_01: So let's start with Chanel.
• 1:45
  SPEAKER_01: Because did you know that you can't buy Chanel online from the store?
• 1:52
  SPEAKER_01: You know, they've built an empire on exclusivity.
• 1:57
  SPEAKER_01: So you walk in, you're greeted by a host, and every item feels sacred because they're not running sales, they don't plaster clearance across their windows.
• 2:10
  SPEAKER_01: And you honestly don't even know what season something is from because they have mastered timeless value.
• 2:19
  SPEAKER_01: And now, if you compare that to what happens inside of our industry every day, you know, think service providers dropping flash sales or discounting, you know, some sort of color service or correction, or offering 20% off this week only because the books look light.
• 2:39
  SPEAKER_01: That's not marketing, that's panic in disguise.
• 2:43
  SPEAKER_01: And here's the kicker discounts don't attract dream clients, they attract deal chasers.
• 2:51
  SPEAKER_01: And deal chasers, they don't build empires.
• 2:56
  SPEAKER_00: Yeah, so good.
• 2:57
  SPEAKER_00: I love what you said.
• 2:59
  SPEAKER_00: Did you say deal chasers don't build empires?
• 3:03
  SPEAKER_00: So good.
• 3:04
  SPEAKER_00: You know, because if you really think about it, most salon owners think pricing is a spreadsheet problem.
• 3:09
  SPEAKER_00: You know, actually it's not, you guys, it's it's a self-worth problem wrapped in math.
• 3:15
  SPEAKER_00: You cannot charge premium prices with like bargain beliefs.
• 3:19
  SPEAKER_00: You know, the number on your menu reflects what you believe you're worth, not just what your the cost of your color is or your overhead is.
• 3:28
  SPEAKER_00: It truly goes back to believing what you're worth, what your salon can charge, what you're worth.
• 3:33
  SPEAKER_00: And so let's break this down because pricing actually has three layers.
• 3:38
  SPEAKER_00: Um, the first layer is actually gonna be numbers.
• 3:40
  SPEAKER_00: So this is your cost, profit margin, time, and goals.
• 3:45
  SPEAKER_00: The second layer is gonna be your narrative.
• 3:48
  SPEAKER_00: So, you know, taking some time to write down those numbers, you want to write down your cost, your profit margin, your time, and your goals.
• 3:56
  SPEAKER_00: The next layer to that is gonna be look at the narrative.
• 3:59
  SPEAKER_00: So when we say narrative, we're talking about the story you tell about what your service is worth.
• 4:05
  SPEAKER_00: You know, so like those numbers that you wrote down, an exercise would be to go back and write the narrative that you see when you look at those numbers.
• 4:13
  SPEAKER_00: And the third one is nerve, it's the courage to stand behind it.
• 4:19
  SPEAKER_00: The courage to stand behind it, and that third one, you know, that's where most salons crumble.
• 4:26
  SPEAKER_00: They think confidence comes after success, but it's actually the price of admission to success.
• 4:34
  SPEAKER_01: So good.
• 4:35
  SPEAKER_01: You know, do you remember when maybe once upon a time a luxury brand tried to go mass?
• 4:45
  SPEAKER_01: They started selling to everyone, and in the process, they actually became no one.
• 4:52
  SPEAKER_01: It always makes me think of coach in the 2000s, you know, you could find it in every department store, every outlet mall, every airport kiosk.
• 5:03
  SPEAKER_01: But what happened was it started to lose its aura, you know?
• 5:08
  SPEAKER_01: And that's what happens when you overscale before you have systems in place, or you over-discount, or even just, you know, overextend your brand to be liked by everyone.
• 5:22
  SPEAKER_01: You know, the same thing happens in salons.
• 5:24
  SPEAKER_01: You start with premium intentions, but then you start saying yes to everyone, or amplifying the wrong customer's voice, and you bend on your pricing just this once.
• 5:37
  SPEAKER_01: And before you know it, you've diluted your brand faster than anything, you know, because luxury isn't about price, it's about positioning.
• 5:50
  SPEAKER_01: And, you know, that's what makes me think of Coach.
• 5:53
  SPEAKER_01: Coach is still a great brand, but you know, they were at a premium price point and they really did dilute themselves and it changed their position in the marketplace.
• 6:05
  SPEAKER_00: Yes, so good.
• 6:07
  SPEAKER_00: So let's talk about what or who you're actually pricing for, because not everyone is your client.
• 6:12
  SPEAKER_00: Let me say that again because it's really good.
• 6:14
  SPEAKER_00: Not everyone is your client, and that's a great thing, you guys, because there are seven different buyer types.
• 6:21
  SPEAKER_00: And so we have the first buyer type, which we like to call the freebie seeker.
• 6:26
  SPEAKER_00: You know who I'm talking about.
• 6:28
  SPEAKER_00: You've already got that person popped in your head.
• 6:30
  SPEAKER_00: You know, they want everything for nothing, and they will never see your value.
• 6:36
  SPEAKER_00: So if you think about that, like think about your marketing.
• 6:40
  SPEAKER_00: If you're always marketing to a discount or, you know, to 20% off or something else, like you're probably going to pull in those people that want everything for nothing.
• 6:52
  SPEAKER_00: The next type of buyer type is called the bargain hunter.
• 6:55
  SPEAKER_00: They're ex they're obsessed.
• 6:57
  SPEAKER_00: I'm talking about obsessed with deals, just like the deal I mentioned, and loyalty lasts until the next coupon.
• 7:04
  SPEAKER_00: So, like, oh, I'm going to Salon ABC, but oh wait, I just saw Salon X, Y, and Z.
• 7:10
  SPEAKER_00: Their color is$5 cheaper.
• 7:13
  SPEAKER_00: I'm gonna go over there.
• 7:14
  SPEAKER_00: That's really how they think.
• 7:15
  SPEAKER_00: They count pennies.
• 7:17
  SPEAKER_00: So interesting.
• 7:19
  SPEAKER_00: Uh, the third type of shopper buyer type is the value shopper.
• 7:23
  SPEAKER_00: So they love quality.
• 7:25
  SPEAKER_00: And if you can help them understand why it matters, they can be a great client for you.
• 7:33
  SPEAKER_00: Um, so but you have to help them understand why it matters and you have to give them a lot of value, you know, the face shape analysis, the color analysis, the scalp analysis, whatever it may be.
• 7:43
  SPEAKER_00: And then we have the convenience buyer.
• 7:46
  SPEAKER_00: You know, this pays, um, they like easy scheduling, love online scheduling, they love location and speed.
• 7:54
  SPEAKER_00: Because I feel like the convenience buyer, their greatest asset is time.
• 7:58
  SPEAKER_00: And so they want to do whatever is going to be the most effective, efficient, and take the least amount of time.
• 8:05
  SPEAKER_00: So you have those kind of buyers.
• 8:07
  SPEAKER_00: Another type of buyer we like to explore is the experienced lover.
• 8:11
  SPEAKER_00: They pay for how you make them feel.
• 8:16
  SPEAKER_00: They love the pampering, they love the personalized services, they love the extra little touch points.
• 8:22
  SPEAKER_00: They don't care about the price, they just want to feel important.
• 8:26
  SPEAKER_00: And then you have the brand devotee, and they want the best and love to tell everyone where they go.
• 8:34
  SPEAKER_00: You know, if they that's sometimes with luxury cars, if you think about the brand devotee, like, oh, I drive a um uh what's a luxury car?
• 8:42
  SPEAKER_00: My mind just went brink blank, Lindsay.
• 8:44
  SPEAKER_00: Um like Rolls Royce.
• 8:47
  SPEAKER_00: Rolls Royce, yes, that's a good one.
• 8:49
  SPEAKER_00: Yeah, yeah, yeah, yeah.
• 8:50
  SPEAKER_00: They like they like people to know that.
• 8:51
  SPEAKER_00: So, like that's a brand devotee.
• 8:53
  SPEAKER_00: They want people to know they're associated to that affluent market, and then you have the transformation buyer, and they pay any price for change that feels permanent.
• 9:07
  SPEAKER_01: Yeah, so good.
• 9:08
  SPEAKER_01: All of those different buyer types are just incredible to know because here's here's what it we want you to take away.
• 9:15
  SPEAKER_01: When someone says you're too expensive, all they're saying is I'm not your buyer type.
• 9:23
  SPEAKER_01: That's not rejection, that's redirection.
• 9:25
  SPEAKER_01: Your job isn't to convince the wrong person, your job is to communicate value to the right one.
• 9:33
  SPEAKER_01: You know, because I'll never forget a salon owner who once told us, you know, I can't charge more because no one in my town will pay that.
• 9:44
  SPEAKER_01: And I remember we said, Oh, really?
• 9:46
  SPEAKER_01: You know, there's a woman in your town driving a Range Rover, wearing, you know, Lululemon, drinking an$8 matcha every day.
• 9:55
  SPEAKER_01: So that it's not actually that people won't pay, it's just that they won't pay you yet.
• 10:02
  SPEAKER_01: And that pause, that's when she realized she'd been training her guests to devalue her work.
• 10:12
  SPEAKER_01: She was doing this through underpricing, through discounts, and you know, really through silence.
• 10:17
  SPEAKER_01: Because here's the thing if you don't communicate your value, your clients will invent one and it'll always be lower than the truth.
• 10:33
  SPEAKER_00: So good.
• 10:34
  SPEAKER_00: So when you think about communicating, communicating value isn't about listing features, you know, it's about painting a picture of that transformation that they're going to get.
• 10:43
  SPEAKER_00: So instead of your team saying, our blind session start at 250, actually, we like to do some um audits sometime, even with our own salons, is call and ask the price of something.
• 10:54
  SPEAKER_00: And most of the time when we're asking pricing, it's like, well, our blonding starts at 250 and that's all we get.
• 11:00
  SPEAKER_00: But like, what if somebody, when you call somewhere, somebody answered the phone, they want to know the pricing, and they said, Hey, our signature blonding experience includes a personalized color analysis and bond protection and styling that keeps your blonde healthy and luminous for weeks.
• 11:16
  SPEAKER_00: Guests typically invest around$250 and up, depending on their goals.
• 11:21
  SPEAKER_00: Isn't this so different when you think about it?
• 11:24
  SPEAKER_00: Would you rather have your salon answering the phone of like, oh, blonding starts at$250 versus like, hey, you're gonna get color analysis, you're gonna get some color protection, your hair is gonna be healthy, it's gonna have lots of shine or luminous.
• 11:39
  SPEAKER_00: Like, that seems like$250 worth of service.
• 11:43
  SPEAKER_00: But to a consumer, if they've never even been there before and they're just price shopping, they're not gonna know that, hey, you get all of that for$250 if you don't share it.
• 11:52
  SPEAKER_00: So, like in that moment, you're not just sharing the highlights, you're sharing how they will feel when they walk out.
• 11:59
  SPEAKER_00: You know, they're gonna feel confident, they're gonna feel radiant, they're gonna feel unstoppable.
• 12:03
  SPEAKER_00: And that is truly value.
• 12:06
  SPEAKER_01: Yeah, you know, there's a dangerous temptation that I think creeps into every bonus or every um business owner, you know, when they think about their pricing and it whispers something like, if I just drop the price a little, maybe more people will say yes.
• 12:25
  SPEAKER_01: You know, and it feels smart in the moment, but it's not strategy, it's survival mode.
• 12:32
  SPEAKER_01: And survival mode never scales because when you price from fear, you attract more fear.
• 12:40
  SPEAKER_01: But when you price from confidence, you attract abundance, you know, and that's what Jen was just talking about with those two different scripts, you know, because the truth is you can't build a luxury brand from lack.
• 12:58
  SPEAKER_00: And let's see, it reminds me of we just were in Charleston doing a decade and a day.
• 13:03
  SPEAKER_00: Um, so if you want to know learn more about what a decade and a day is, text decade.
• 13:07
  SPEAKER_00: We'll give you the number here in a minute.
• 13:08
  SPEAKER_00: But it's a beautiful way to take 10 years of knowledge and compact them in one day so that your business can grow 10 times the possibility that you ever thought.
• 13:18
  SPEAKER_00: And while we were there, um the hotel we stayed at, remember they had all those luxury names.
• 13:23
  SPEAKER_00: It's like when we called, they said, Hey, you know, Mrs.
• 13:26
  SPEAKER_00: Lowe, we're gonna have, or Miss Lowe, you're gonna have your uh butler waiting for you when you check in with uh your favorite beverage.
• 13:34
  SPEAKER_00: Like, what butler?
• 13:35
  SPEAKER_00: And so just that elevated language helped us to see the value because these were not cheap rooms.
• 13:41
  SPEAKER_00: If you've ever been to the Charleston, South Carolina, South Carolina area, you're staying downtown.
• 13:46
  SPEAKER_00: I mean, they're gonna run you seven, eight hundred dollars a night easily.
• 13:50
  SPEAKER_00: And so, like, you start to see the value when you match the language to that, or give the or help the guests see, hey, what's in it for them?
• 13:57
  SPEAKER_00: And so, you know, we did get our butler if you're wondering.
• 14:00
  SPEAKER_00: And yes, he did put our luggage in a room.
• 14:02
  SPEAKER_00: Yes, he did turn our bed down at night.
• 14:03
  SPEAKER_00: Yes, he did put little samples in our room of little chocolates throughout the time.
• 14:08
  SPEAKER_00: And so, like, we see that the value aligns with the price that we paid, you know.
• 14:13
  SPEAKER_00: This even reminds me of a of a student that we had in salon business school who raised her salon prices by I think it was nearly 35%.
• 14:22
  SPEAKER_00: And I remember she was terrified.
• 14:25
  SPEAKER_00: You remember that, right?
• 14:26
  SPEAKER_00: She was terrified, and she said, half of our guests are gonna leave, though, pump the brakes.
• 14:31
  SPEAKER_00: Um, and I think she told us that like one to two guests left.
• 14:35
  SPEAKER_00: Um, and also, you guys, that guest that left was the one who always complained about the price.
• 14:41
  SPEAKER_00: Imagine that.
• 14:42
  SPEAKER_00: They always rescheduled and they even, you know, sometimes asked, Well, can I keep the price down if I bring my own color?
• 14:49
  SPEAKER_00: What in the world?
• 14:50
  SPEAKER_00: You know, the rest, they actually respected the move.
• 14:54
  SPEAKER_00: They understood because like confidence is contagious, and when it when you price with clarity, your team mirrors it, and when you waffle, your team wobbles too.
• 15:06
  SPEAKER_00: And so your prices set the tone of the energy of your entire company, so good, you know.
• 15:14
  SPEAKER_01: And I think one of the biggest mindset shifts you can make is this you're not for everyone, and that's your power because every no creates space for the right yes.
• 15:29
  SPEAKER_01: And every time someone says you're too expensive, thank them silently for filtering themselves out.
• 15:37
  SPEAKER_01: Because when you try to be affordable for everyone, you become unforgettable to absolutely no one.
• 15:48
  SPEAKER_00: Yeah, so good.
• 15:49
  SPEAKER_00: So if you want to know whether your pricing is aligned, we have this amazing gift that we're gonna give you.
• 15:55
  SPEAKER_00: We also want you to ask yourself these three questions.
• 15:58
  SPEAKER_00: Um, does your pricing does it reflect my true cost and profit goals?
• 16:02
  SPEAKER_00: So, does it reflect your true cost and profit goals?
• 16:05
  SPEAKER_00: You definitely want to dive into that.
• 16:07
  SPEAKER_00: Does it represent my brand and desired positioning?
• 16:11
  SPEAKER_00: Who do I want to be viewed as?
• 16:13
  SPEAKER_00: And does it make me feel excited?
• 16:15
  SPEAKER_00: Does it make my team feel excited to serve at that level?
• 16:19
  SPEAKER_00: And if you're resentful when you swipe the card, you're actually undercharging.
• 16:24
  SPEAKER_00: And if you're nervous but proud when you quote it, you're right back on track.
• 16:29
  SPEAKER_00: Like pricing should never should feel like you're wearing heels a little elevated but empowering.
• 16:37
  SPEAKER_01: You know, because discounts don't just cost you money, they really cost you momentum.
• 16:41
  SPEAKER_01: And every time you run a sale, you know, we're not saying don't ever run any sort of product special, that's different.
• 16:47
  SPEAKER_01: Um, but every time you run a sale on like cutting or coloring or something, you know, some sort of service, you're teaching your guests to wait for the next one.
• 16:55
  SPEAKER_01: You know, you're teaching them that your value fluctuates.
• 17:00
  SPEAKER_01: But here's what the best brands know value doesn't go on sale, excellence doesn't go on clearance.
• 17:08
  SPEAKER_01: And if you've trained your clients to expect discounts, you can retrain them.
• 17:13
  SPEAKER_01: Just start by adding in layers of value instead of lowering your price.
• 17:18
  SPEAKER_01: Add a luxury head massage, add, you know, a color analysis, create and use better language because you don't need to be cheaper, you need to be clearer.
• 17:33
  SPEAKER_00: Yeah, so good.
• 17:34
  SPEAKER_00: So here's your challenge for the week salon owners is to audit your pricing, ask yourself, hey, is it rooted in fear or in faith?
• 17:41
  SPEAKER_00: Is it built on scarcity or on service?
• 17:45
  SPEAKER_00: And if you're ready to price like a pro, there's no better time than now.
• 17:49
  SPEAKER_00: And we've created our free salon pricing calculator to help you find your profitable, confident number for every service.
• 17:58
  SPEAKER_00: So just text the word pricing, P-R-I-C-I-N-G to 469-283-5590.
• 18:11
  SPEAKER_00: Again, that's pricing to 469-283-5590.
• 18:17
  SPEAKER_00: We'll send it straight to your phone because the truth is the price is right when you are.
• 18:23
  SPEAKER_01: Yes, I love that.
• 18:24
  SPEAKER_01: And also, Jen mentioned the decade in a day earlier today.
• 18:27
  SPEAKER_01: You can also text the word decade, that's D E C A D E to the same number, 469-283-5590.
• 18:35
  SPEAKER_01: And we'll send over some more information about our decade in a day program.
• 18:40
  SPEAKER_01: And if you've gotten some amazing tidbits from today's episode, share it with another salon owner that you just think is great.
• 18:49
  SPEAKER_01: Um, help them learn about the free pricing calculator.
• 18:53
  SPEAKER_01: And never forget, this is the perfect season to do a price increase.
• 18:58
  SPEAKER_01: No matter when you're listening to this podcast, but especially if you're listening to it right now, inside of third quarter, when everyone is in spending season.
• 19:08
  SPEAKER_01: Thanks for tuning in.
• 19:09
  SPEAKER_01: We'll see you soon.