Are you wondering what you should charge for your full-set and fill-in eyelash extension service? Are you a lasher considering raising your lash service price but unsure to how much? Our guide is here to help you strategize and choose the right price for you and your clients.
When it comes to pricing your lash services there are quite a few things you want to consider to be sure you're not over nor undercharging for your lash service. I have experienced both cases before within my lash career which is what inspired me to create this blog post. I have struggled in the past with figuring out how to price my beauty services and had a very strong desire to find the balance between being affordable and being able to make a profit to afford my livelihood.
Throughout my lash career I have been faced with times when although I was booked and busy I still wasn't able to pay my bills, nor my rent and with being a single mother facing homelessness as my reality I knew this was something I had to figure out and FAST! My purpose of pursuing an independent career as an entrepreneur was to have freedom, and enough money to afford all the things I needed, and desired. This required me to get in tune and organized with my lash business because this important decision could be an ultimate knock out for my business, and the start of a very depressing journey to get back up and on track. Giving up and failing was not even an option for me and the challenge I was facing had a solution and I was determined to find it. The first thing I had to do was correct my thought process and then I had to get serious and take the required actions. As I began researching, I discovered that there is no formula-based approach to make pricing my service easy to determine and in the past, I would have been discouraged and defeated, but with my new mindset and attitude I now had the courage to find a solution to the problem I was facing and this required critical thinking and most importantly a strategy.
The following information will serve as a guide and resource on how to price your lash extension service. The results of utilizing this guide to help you understand the importance of pricing in your lash business will be you going from working harder to working smarter almost instantly.
Pricing Your Lash Service
Since there isn't a specific formula to choosing a price for lash services here are 3 common methods that experts suggest factoring and consider when determining price.
Cost Plus Pricing Method- This is a standard method in business that involves taking the cost of providing the service and adding an additional amount which will equal the desired price. The way to determine the cost of the service is to figure out the direct costs, indirect costs, and fixed costs. This method is commonly used for hourly based pricing, and you must remember to factor in your general overhead costs like rent, utilities, and other common things based on how you provide your lash service. Once that number is calculated then you will divide monthly costs down to weekly costs, then divide weekly down to daily cost, then divide that down to hourly costs to get my hourly rate which is the cost of providing the service.
Ex. If my monthly expenses total to $3,500 a month I would divide that by 4 to get my weekly expense total.
3500/4= 875 which is the total of my weekly expense
Now if I only work 6 days out of the week, I will divide $875 by 6
875/6=145.84 which mean my daily expenses are $145.84 so now I need to divide that by the number of hours I work in a day which we will say is 6 hours a day
145.84/6= 24.30 so this means I will need to make a minimum of $24.30 an hour to cover my general overhead which is now my determined cost of providing the service. Now to get the magic number using the "Cost Plus Pricing Method" I create the formula of:
24.30 (cost of providing service hourly) + 25 (additional amount (we just doubled it for this example however this amount will be your choice and can be more or less)) = $49.30 an hour (Desired Price)
If I were to choose my lash service price based off this method, I would charge $50 per hour for my lash service and gross $7,200 a month
Marketplace Method- This method requires you to be aware of what your competitors are charging in the marketplace. You can find this information through published information like their website, social media platforms, also by calling to find out, or by asking friends and associates who have been serviced by them. Be sure to note that it's not a great idea and you should avoid choosing your pricing solely based on your competitor's price, this will attract clients that are less likely to be loyal and will more than likely stop being serviced by you to be serviced by someone cheaper when discovered. It's best to compete on client service experience by focusing on what sets you apart. The goal is to establish a long-term relationship, so you need to focus on convincing your customer that you are giving them prodigious service in terms of quality and service. You are only seeking competitor's pricing to be aware of your market.
Client Perceived Value- This is where your marketing matters. How you present yourself and your service to your client influences the way they see the value. If you are marketing yourself as a 2 or more times certified lash tech you are display and saying that you are truly invested in continuously learning how to perfect your skill, and helps your client see you as knowledgeable, invested, and serious about the service you offer. This has added value to your client's perception. If you market yourself and service as a professional luxury service that includes a relaxing experience, with bonuses or gifts that is what your client will perceive and expect which adds value to your client's perception also so your pricing should reflect what a professional would charge in a luxury salon. When using this method to help determine your price be very creative and intentional about how you market and brand your service as it's what influences how clients will perceive if your service is worth what you charge.
Costs Calculating
Before you set your price you must know the cost of providing your service. There are three parts that make up the cost of producing services.
Material Costs- These are the cost of goods used to provide your service. Including but not limited to lash tweezers, lash tape, micro swabs, lash adhesive, lash cleanser, lash brush, etc. Creating a material list that includes prices of each will help you determine the cost of your materials and be a great reference, however this also requires you to consistently check pricing on material and keep list up to date, if material cost goes up then your service price will need to increase as well.
Labor Costs- This is the cost of direct labor that is hired to provide service. This cost may include a cleaning crew if your own a salon or suite, or mechanic if you are a mobile lash technician.
Overhead Costs- These are indirect costs including but not limited to taxes, insurance, administrative assistants, rent, utilities, mileage, advertising, business subscriptions, and more! You should always keep these figures up to date as you will need to charge clients a rate based on what the current cost is to cover them all. If the economy is experiencing inflation that will cause an increase in pricing for service as well.
"Price is what you pay. Value is what you get." – Warren Buffett
Monitoring, Changing, and Raising your Price
As a service provider if you are having a hard time selling your service for an acceptable profit you will want to re-evaluate your overhead cost to determine whether there are some adjustments or cuts that can be down to increase your profit margin. Make it a habit to monitor your costs as a best business practice. The best times to review them are monthly by the 15th of every month. One of the most common mistakes most lash artist is making is that they don't spend enough time going over financial statements, and this can be because they don't know because no-one has ever taught them how to do so. If you are reading this and you need more assistance with learning how to create, organize, monitor, and adjust your business finances make sure you are a member in Everything Lash Facebook Group to find resources that will assist with learning how too.
You should always be testing new prices, new offers, bundle service combinations, etc to help sell more of your services at a better price. When you do so measure the increase or decrease in the volume of services and the total gross profit generated.
It's a fact that as you're managing your business prudently you will have to raise your price from time to time. If you never raise your price you probably won't be in business long. You must consistently monitor your price, and cost so that you are competitive in the market and so that you make the money you deserve to make in business. Raising your price can come with risk and there is a such thing as pricing yourself too high and selling yourself out. Here's some guidelines on how to raise the price of your lash service:
DO raise your price when your competitors are raising their price. If your competitors are raising their price that is a good signal that the market supports a price increase.
DO raise your price if your client's say you're super affordable, a bargain, or cheap. If your clients are saying that you are a great value service, then that is a sign you are charging too low a price.
DON'T raise your price too much all at once. Raising your price too high maybe too much for your clients at one time. The smart thing to do is gradually raise your price in small increments of 2-3 price increases within a year.
DO be discreet when raising prices. Avoid raising your prices on all your services across the board all at once. If you increase your Hybrid sets, wait a bit before raising the price on your volume sets or vice versa. This reduces customer complaints and increases profit.
Lastly, you owe it to yourself and your lash business to stay consistent and relentless when it comes to managing your pricing strategy. The price you set for your services could be the difference in succeeding or failing in your lash business.
Knowing how much you should charge for your eyelash extension service is a big deal and deserves a well thought out strategy for you to consistently monitor and adjust based on the economy. Sign Up for with Everything Lash Business Coaching for 1-on-1 assistance with strategizing and growing your lash business. And before you go leave a comment if this blog helped you gain clarity on how to price your lash service.
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