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How to research the competition and price points
Proper pricing for the service should be the combination of cost of services and profit. This means that you have to give the proper pricing for your service by calculating both the cost of services and the profit you have to get from these services. The cost of services should include all the expenses of the salon such as advertising, utilities, insurance, rent, wages for the employees, assistants, receptionist, salon coordinator salaries, payroll taxes, accounting, legal and consulting fees, credit card processing and banking fees, hospitality etc. The pricing should be based on the actual cost of the services with the desired profit.
The service should not be priced lower than the cost of performing that service. In order to stay on the business for long, realize the importance of profit on every service. The pricing should not be based on the preference of the client or according to the employees thought. The pricing differs for every business owner and there are many aspects to the pricing challenge.
The salon owners should not be worried about the pricing strategy by comparing your competitor because you are giving a price based on what you feel normal and people will pay for that service.
Regards,
Sans.