As an aesthetician, one of the most important and challenging questions you’ll face is, “How do I set my prices?” This is a question that can make or break your business, yet so many in our industry approach it the wrong way. They guess, pull numbers out of thin air, or worse, copy what others are charging without understanding their own costs. Let me be clear: this approach is a recipe for disaster.
The Importance of Understanding Your Costs
First and foremost, your pricing must cover your costs and generate a profit. It sounds simple, but you’d be surprised how many aestheticians overlook this fundamental principle. According to a report by the Global Wellness Institute, the beauty and wellness industry is expected to reach $1.5 trillion by 2025. With such rapid growth, it’s more crucial than ever to ensure that your pricing is aligned with your business goals and market realities.
When setting your prices, you cannot rely on what others in your area are charging. Their expenses, goals, and client bases are different from yours. Instead, you need to calculate how much it costs you to provide each service and how much profit you need to sustain and grow your business. This means accounting for all your expenses—rent, utilities, products, equipment, marketing, and even the cost of your time.
Setting Your Operating Hours: The Foundation of Your Pricing Strategy
Before you can even begin to think about setting your prices, you need to establish your spa’s operating hours. This might seem like the easiest part, but it’s where many aestheticians falter. In their desperation to attract clients, they become willing to work any hours the client wants. A Sunday appointment on your day off? Sure, why not? But this isn’t how professional businesses operate.
Imagine walking into your favorite boutique and seeing a sign that says, “Open whenever we feel like it.” You wouldn’t trust that business, and neither will your clients if your hours are all over the place. Having set hours not only makes you look professional, but it also helps you calculate how much revenue you need to generate during those hours to cover your costs.
The Danger of Discounting Without a Plan
Now, let’s talk about discounts. Everyone loves a good deal, but offering discounts without understanding your base price can lead to financial ruin. If you don’t know the minimum amount you need to charge to cover your expenses, you risk offering discounts that put you in the red. There’s nothing worse than showing up to work only to realize that after all your hard work, you’re losing money.
Consider this: According to the U.S. Bureau of Labor Statistics, the average hourly wage for a skincare specialist is around $18.50. However, this doesn’t account for business expenses. If your base price is set too low, you might be making less than minimum wage after accounting for all your costs. That’s why knowing your numbers is critical.
Calculate Your Base Price: The Formula for Success
So, how do you calculate your base price? I have all the details and formula for you (here)
The Bottom Line
Setting your prices isn’t about guessing or following the crowd. It’s about understanding your costs, setting professional operating hours, and knowing your worth. By calculating your base price, you’ll ensure that every service you provide is profitable, allowing you to grow your business and thrive in the ever-expanding beauty industry.
Don’t leave your financial success to chance. Take control of your pricing today, and watch your business flourish.
