Be Honest — Did You Actually Calculate Your Prices?
Most of us set prices by looking at what the salon down the road charges and picking something similar. The problem? They probably did the same thing. Nobody calculated anything. Everyone’s just guessing — and most are guessing too low.
The Cost-Based Formula
Before you price anything, you need your cost floor — the minimum you must charge to break even. Here’s how:
1. Total your monthly fixed costs. Rent, insurance, electricity, WiFi, subscriptions, loan repayments — everything you pay whether clients show up or not. For most independents this is £800–£2,000.
2. Count your billable hours. Not admin or cleaning — actual hands-on client time. Five treatments a day, five days a week is roughly 100 hours a month.
3. Divide. £1,200 fixed costs ÷ 100 hours = £12/hour before you’ve bought a single product or paid yourself.
4. Add product cost per service. A gel set uses about £3–5 in product. A colour service, £8–15. Add that to your hourly base.
So a 90-minute colour at £12/hour base + £10 product = £28 cost floor. Charge £30 and you’re making £2. That’s not profit. That’s a rounding error.
Price for Profit, Not Survival
A healthy margin for a service business is 20–30% on top of all costs, including your own salary. Using the colour example above: £28 cost + 25% margin = £35 minimum. If you want to actually take a holiday this year, pay for training, or replace your knackered chair — that margin is non-negotiable.
Value-Based Pricing
Cost-based gets you the floor. Value-based gets you paid what you’re worth. Ask yourself: How long did it take to learn this skill? What result does the client walk out with? What would they pay somewhere else for the same outcome? If you’re the only person within five miles who does Russian lashes and you’re booked three weeks out — that’s a signal to charge more, not stay cheap.
How to Tell Your Clients
Give 2–4 weeks’ notice. Keep it simple and warm:
“Hi [name], just a heads up — my prices are updating from [date]. It’s been [X months] since my last increase, and with rising costs I want to keep delivering the quality you deserve. Book before [date] to lock in current prices.”
Don’t apologise. You’re not doing anything wrong. Clients who value your work will stay. The ones who leave over a fiver were never your people.
Quick Checklist
- Know your cost floor for every service
- Build in 20–30% profit margin
- Review prices at least once a year
- If you’re booked 3+ weeks out, raise them now
- Communicate changes with confidence, not apology
Your skills, your training, your experience — they’re worth more than you’re charging. Run the numbers, set your prices properly, and own it.