This question is often asked by PMU professionals, especially new faces in the industry who have yet to make a name for themselves and their salon. If you start with too low service prices, you risk small profits and the impossibility of functional business maintenance, as well as rumors that you offer low-quality work; on the other hand, if you raise the prices too much, you could shock potential clients and with that move lose them to other salons. In the rest of the text, we reveal several tips on how to best assess your financial capacity and adjust the prices of services accordingly.
COVERING COSTS
First, consider how much it costs you to provide each service to clients. At the very least, you need to charge enough to cover those costs.
Know what your time and materials are worth. How long does it take you to finish one eyebrow powder or lip blush? What are the costs of materials and electricity you use during work? If you decide to offer follow-up inspection and repair services, how much do they cost? All of these costs are your direct costs. They can vary depending on the number of clients you have.
Then factor in your indirect or fixed costs. Examples of indirect costs include your taxes, building rent, advertising costs, and employee wages.
You want to ensure that the prices you charge for your services cover your direct and indirect costs. The money you earn outside of that is profit that you can use to buy new equipment, hire additional staff, train, and the like.
SETTING THE BUSINESS VISION/OBJECTIVES
In addition to covering direct and indirect costs, it would be good if the prices of your services reflect the goals and vision you have for your business. In thinking about what your vision for your business is, you can ask yourself some of these questions:
- How do you want clients to see your business? Want to be known as an affordable option? Or would you rather be known as a luxury salon? Maybe you’d like your prices to be somewhere between “affordable” and “luxury”?
- Will starting with a low price help you build your client base? Will the higher price attract buyers hoping for a luxury experience?
- How about starting to build your portfolio of clients by offering an “introductory price” either for the first visit or a short period of time, and then adjust your price to the “original” price after that?
Carefully consider the short-term and long-term goals for your business, consult with a marketing professional if you can, and adjust your pricing accordingly.
MARKET RESEARCH
Learn more about how much other salons in your area charge for permanent makeup services. When you know approximately how much clients pay for PMU in your area, it will be easier to set prices yourself.
Additionally, learn more about your potential clients. Find out what they look for in a PMU specialist. See your services and prices from your customers’ point of view. What do you believe is the true value of your services in your market? If you’re not sure, ask your customers directly for a customer review or send out a post-service feedback survey.
CHANGE PRICES
Keep in mind that your prices don’t have to be fixed forever. What you charge may change.
Our prices are constantly changing, especially recently. Bills for rent, food, electricity, water, gas… Unfortunately, they never stay the same for long. As your living expenses rise, so will the direct and indirect costs of doing business – and thus the prices of your services. At some point, you have to increase your prices to reflect the increase in your costs and to ensure you can continue to operate safely.
Also, new certifications, trainings and increased experience could make you more in demand, booking appointments months in advance. Your popularity could make your time more valuable and allow you to increase your prices.
It’s okay to change your prices to reflect the changes around you. You can experiment with price changes to find the perfect balance for you and your customers.
We hope that these tips will at least help you navigate the financial aspect of business – and don’t forget, you can always (and should, as your business grows) consult with a financial expert!
