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question about pricing
#1
For those of you who own/boothrent, how do you decide on your prices?
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#2
1) Calculate monthly overhead, including everything not directly associated with services: rent, utilities, insurance, licensing, paper supplies, dispensary, refreshments, magazines, etc. etc. - then figure out how many service hours you will work per month (not counting opening, closing, cleaning and admin) - then divide your overhead by the number of hours worked per month - this tells you what it costs per hour for overhead. So, if your overhead is 1,000 and you can work 35 service hours/wk divide 1000 by 140 hrs (assumed 4 weeks of vacation, ha-ha, more likely time to close and revamp things!) = $7.15/hr

2) Calculate your cost for each service, including every little thing used, pro-rated wear on towels, wipes, cleanser, products, wear and tear on tools & equipment, etc. etc.

3) Determine the hourly rate you want to earn while doing services (keep in mind that your pay needs to cover your time while doing things that don't generate revenue, like cleaning).

4) So, for each service add the following
-time multiplied by hourly overhead cost
-service cost
-time multiplied by hourly wage cost

Once you have all of the services calculated you can compare them to each other and find the balance for services that should be comparable or different. For instance, most people agree that a full set should cost more than a re-tip, but they actually have the same cost, more or less, so when you bump the price of a full set up you will end up with a higher hourly rate.

Finally compare with other shops in your area - if you are considerably higher, make sure you're offering the extras that make it worth the cost.

This is just one way to do it, but I find it to be very accurate since it's based on real numbers. Jaime Schreibeck has a different method, and she put it on here a while ago.
Candice
Nail Tech/Owner
http://www.PanacheNailStudio.com
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#3
Thank you! That's a really good explanation.
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#4
Here's some additional information:

http://www.nwstylist.com/columns/2011/03...nsion.html
Jaime Schrabeck, Ph.D. (yes, it's real)
http://www.precisionnails.com
http://shop.precisionnails.com
 Reply
#5
oops! Sorry i spelled your name wrong! Smile
Candice
Nail Tech/Owner
http://www.PanacheNailStudio.com
 Reply
#6
No worries, Candice. It's not mine; it's my ex's . . . I just never returned it : )
Jaime Schrabeck, Ph.D. (yes, it's real)
http://www.precisionnails.com
http://shop.precisionnails.com
 Reply

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