Charging For Treatments

One of the most common questions we are asked is “How much should I charge?”.  It can be a difficult question to answer as there is no single definitive way to determine what the price for a treatment should be.  This article provides some ideas and suggestions for pricing your beauty services.

What Is The Competition Doing?

One of the easiest ways to price a service is to see what the competition in your area is charging.  Keep in mind that there could be a mix of salons from a major shopping center that carries a huge rent to a home salon that carries virtually no rent. Once you find your competition and see what they charge, you will quickly discover that there can be quite a difference in pricing.

The psychological of people is that they don’t want to pay top dollar and they don’t want to pay bottom dollar either, they want something in the middle but they consciously don’t know what that price is.  There is a theory of “The trusted price”, a price point where, subconsciously, most people are happy to pay because they believe it is the best value, even if the item is exactly the same.  “So what’s the magic formula?” I hear you ask, it is this.  The midpoint between the lowest and highest price is considered to be the trusted price.  For example:

The lowest price in your area for a given treatment is $150.00

The highest price in your area for a given treatment is $200.00

The midpoint is $175.00

There are other factors in setting prices.  How much does the treatment really cost you?  Consider the following:

  • The cost of products or consumables
  • The cost of rent
  • The cost of utilities
  • The cost of staff
  • Your expected return on investment for any machine you may have purchased
  • The cost of your time
  • What is the demographic of your clients (are you in the Eastern Suburbs of Sydney or in Townsville, they are very different)

Should I Discount My Price?

Sure, why not?  But let’s look at what you can do with a discount.  In the example above, $175.00 is the trusted price, should you discount that price?  In my opinion, probably not, however, you have the option to show that the $175.00 is actually a discounted price.  For example:

Treatment was $195.99, now only $175.00.

Now that is a very simplified answer, there may be a bunch of other factors at play that mean you may want to discount.  Consider the following:

Bundle treatments together and provide a discount on the bundle.  For example:

If you are providing a HIEMT treatment to a client, bundle it with an LED facial for $40.00.  There is no extra effort on your part in providing the LED facial and et by bundling the treatments you are in effect providing a discount.  In reality, you have just earned an additional $40.00.

If you provide HIEMT type treatments, then consider bundling multiple HIEMT treatments together.  Sell blocks of 8, 12 or 16 treatments and have a slight price reduction per treatment as you bundle more together.

Give introductory offers on new treatments.  For example:

You may be introducing teeth whitening as an additional treatment.  There is a bit of competition in the area but you have decided that as you have an existing client base, you want to keep your clients in your salon for longer and keep them coming back to you rather than your competition.  Therefore, use an introductory offer.  In the $175.00 example above, sell the treatment for $150.00 for the first week or to the first 10 clients.  Setting a deadline creates urgency.

I want to use Groupon, It Looks Like a Great Idea

Personally, I would not use Groupon or similar schemes.  With the exception of one customer, anyone I have spoken to who uses Groupon regrets it.  The general consensus is that the Groupon client is always on the lookout for the cheapest offer and they are not loyal to a place.  The end result is that you could give a lot of $175.00 treatments for 50% off with no repeat business at full cost.  One particular customer of ours nearly drove their business into the ground by using Groupon.  Please understand that this is not a review of Groupon, I am sure that some people do well out of it.  Do your homework before you commit.


If you are in a salon that sells treatments for the $100.00 to $150.00 mark, introducing a treatment that is priced at $400.00 is a tough sell to your clients.  The expectation of your clients is that they will walk out of your salon having spent about $150.00.  Conversely, if you are in a salon that sells treatments for the $400.00 to $600.00 mark, introducing a treatment priced at $150.00 may seem too low for your clients, even if it is a reasonable price.  It’s all about what your clients expect and are willing to pay when they walk through your door.

Tread Your Own Path

At the end of the day, this is your business.  Do what is right for you and your business and make the decision that is right for you to grow your business and have happy clients that come back to see you.  The above information is provided to get your creative juices flowing so that you can make your own decisions.

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