The Price is Right -Or- Is It? How Poor Pricing Strategies Can Sink Your Salon

Send us a text

We uncover why safe pricing keeps salons stuck and how numbers, narrative, and nerve create premium positioning without panic discounts. We map seven buyer types, upgrade your value language, and share a case study that proves confident pricing attracts better clients.

• fear, not math, as the root of underpricing
• luxury brand lessons on exclusivity and positioning
• the three layers of pricing: numbers, narrative, nerve
• seven buyer types and how to filter for the right one
• value-first phone scripts that reduce price shopping
• confidence effects on team behavior and margins
• adding value versus discounting services
• three questions to audit pricing alignment
• replacing survival pricing with strategy and clarity

Text PRICING to 469-283-5590 for the free salon pricing calculator
Text DECADE to 469-283-5590 to learn about Decade In A Day
Share this with a salon owner who needs a confident price reset

Do you have a question for Salon Success Secrets Podcast?

Send a text or leave a voicemail at [phone] or send us an email to [e-mail]. We would love to hear from you.

Start growing in business and leadership with powerful tools, advice and resources in your inbox every week:

Learn more about Salon Business School Events:

Upcoming Events | Salon Business School

Learn more about Salon Business School Coaching:

https://keap.app/contact-us/4732115411329800

Learn more about Salon Business School for Salon & Spa Owners:

https://keap.app/contact-us/8468267787462617

Are you ready to go all in? Join Salon Business School:

Apply to Join Us! | Salon Business School

Listen to all the Salon Success Secrets podcasts anytime, anywhere here:

Podcast | Salon Success Secrets

Episode Transcript

SPEAKER_00 (00:01):
What if I told you your pricing might be the very
thing keeping you broke?
Not because it's too high, butbecause it's too safe.
What you're saying?
Most lawn owners aren'tunderpriced because they just
don't know numbers.
They're underpriced becausethey're afraid.

(00:23):
They're afraid of rejection.
They're afraid of losingclients.
They're afraid of being toomuch.

But here's the truth (00:31):
you cannot build a million-dollar business
with minimum wage confidence.
That's so good.
And today we're going to beexposing how poor pricing
strategies quickly and quietlysink salons and how bold,
confident pricing actuallytransforms not only your

(00:54):
profits, but your position inthe marketplace.

SPEAKER_01 (00:59):
Yes.
So I love that, Jen, what youjust said, how you know
competent pricing trulytransforms your profits, but
also your position in themarketplace.
So let's start with Chanel.
Because did you know that youcan't buy Chanel online from the
store?

(01:20):
You know, they've built anempire on exclusivity.
So you walk in, you're greetedby a host, and every item feels
sacred because they're notrunning sales, they don't
plaster clearance across theirwindows.
And you honestly don't even knowwhat season something is from

(01:42):
because they have masteredtimeless value.
And now, if you compare that towhat happens inside of our
industry every day, you know,think service providers dropping
flash sales or discounting, youknow, some sort of color service
or correction, or offering 20%off this week only because the

(02:05):
books look light.
That's not marketing, that'spanic in disguise.
And here's the kicker discountsdon't attract dream clients,
they attract deal chasers.
And deal chasers, they don'tbuild empires.

SPEAKER_00 (02:23):
Yeah, so good.
I love what you said.
Did you say deal chasers don'tbuild empires?
So good.
You know, because if you reallythink about it, most salon
owners think pricing is aspreadsheet problem.
You know, actually it's not, youguys, it's it's a self-worth
problem wrapped in math.
You cannot charge premium priceswith like bargain beliefs.

(02:46):
You know, the number on yourmenu reflects what you believe
you're worth, not just what yourthe cost of your color is or
your overhead is.
It truly goes back to believingwhat you're worth, what your
salon can charge, what you'reworth.
And so let's break this downbecause pricing actually has
three layers.
Um, the first layer is actuallygonna be numbers.

(03:08):
So this is your cost, profitmargin, time, and goals.
The second layer is gonna beyour narrative.
So, you know, taking some timeto write down those numbers, you
want to write down your cost,your profit margin, your time,
and your goals.
The next layer to that is gonnabe look at the narrative.
So when we say narrative, we'retalking about the story you tell

(03:30):
about what your service isworth.
You know, so like those numbersthat you wrote down, an exercise
would be to go back and writethe narrative that you see when
you look at those numbers.
And the third one is nerve, it'sthe courage to stand behind it.
The courage to stand behind it,and that third one, you know,

(03:52):
that's where most salonscrumble.
They think confidence comesafter success, but it's actually
the price of admission tosuccess.

SPEAKER_01 (04:01):
So good.
You know, do you remember whenmaybe once upon a time a luxury
brand tried to go mass?
They started selling toeveryone, and in the process,
they actually became no one.
It always makes me think ofcoach in the 2000s, you know,

(04:24):
you could find it in everydepartment store, every outlet
mall, every airport kiosk.
But what happened was it startedto lose its aura, you know?
And that's what happens when youoverscale before you have
systems in place, or youover-discount, or even just, you

(04:44):
know, overextend your brand tobe liked by everyone.
You know, the same thing happensin salons.
You start with premiumintentions, but then you start
saying yes to everyone, oramplifying the wrong customer's
voice, and you bend on yourpricing just this once.

(05:05):
And before you know it, you'vediluted your brand faster than
anything, you know, becauseluxury isn't about price, it's
about positioning.
And, you know, that's what makesme think of Coach.
Coach is still a great brand,but you know, they were at a
premium price point and theyreally did dilute themselves and

(05:28):
it changed their position in themarketplace.

SPEAKER_00 (05:33):
Yes, so good.
So let's talk about what or whoyou're actually pricing for,
because not everyone is yourclient.
Let me say that again becauseit's really good.
Not everyone is your client, andthat's a great thing, you guys,
because there are sevendifferent buyer types.
And so we have the first buyertype, which we like to call the
freebie seeker.

(05:54):
You know who I'm talking about.
You've already got that personpopped in your head.
You know, they want everythingfor nothing, and they will never
see your value.
So if you think about that, likethink about your marketing.
If you're always marketing to adiscount or, you know, to 20%
off or something else, likeyou're probably going to pull in

(06:16):
those people that wanteverything for nothing.
The next type of buyer type iscalled the bargain hunter.
They're ex they're obsessed.
I'm talking about obsessed withdeals, just like the deal I
mentioned, and loyalty lastsuntil the next coupon.
So, like, oh, I'm going to SalonABC, but oh wait, I just saw

(06:36):
Salon X, Y, and Z.
Their color is$5 cheaper.
I'm gonna go over there.
That's really how they think.
They count pennies.
So interesting.
Uh, the third type of shopperbuyer type is the value shopper.
So they love quality.
And if you can help themunderstand why it matters, they

(06:58):
can be a great client for you.
Um, so but you have to help themunderstand why it matters and
you have to give them a lot ofvalue, you know, the face shape
analysis, the color analysis,the scalp analysis, whatever it
may be.
And then we have the conveniencebuyer.
You know, this pays, um, theylike easy scheduling, love
online scheduling, they lovelocation and speed.

(07:22):
Because I feel like theconvenience buyer, their
greatest asset is time.
And so they want to do whateveris going to be the most
effective, efficient, and takethe least amount of time.
So you have those kind ofbuyers.
Another type of buyer we like toexplore is the experienced
lover.
They pay for how you make themfeel.

(07:44):
They love the pampering, theylove the personalized services,
they love the extra little touchpoints.
They don't care about the price,they just want to feel
important.
And then you have the branddevotee, and they want the best
and love to tell everyone wherethey go.
You know, if they that'ssometimes with luxury cars, if

(08:05):
you think about the branddevotee, like, oh, I drive a um
uh what's a luxury car?
My mind just went brink blank,Lindsay.
Um like Rolls Royce.
Rolls Royce, yes, that's a goodone.
Yeah, yeah, yeah, yeah.
They like they like people toknow that.
So, like that's a brand devotee.
They want people to know they'reassociated to that affluent
market, and then you have thetransformation buyer, and they

(08:29):
pay any price for change thatfeels permanent.

SPEAKER_01 (08:35):
Yeah, so good.
All of those different buyertypes are just incredible to
know because here's here's whatit we want you to take away.
When someone says you're tooexpensive, all they're saying is
I'm not your buyer type.
That's not rejection, that'sredirection.
Your job isn't to convince thewrong person, your job is to

(08:58):
communicate value to the rightone.
You know, because I'll neverforget a salon owner who once
told us, you know, I can'tcharge more because no one in my
town will pay that.
And I remember we said, Oh,really?
You know, there's a woman inyour town driving a Range Rover,
wearing, you know, Lululemon,drinking an$8 matcha every day.

(09:23):
So that it's not actually thatpeople won't pay, it's just that
they won't pay you yet.
And that pause, that's when sherealized she'd been training her
guests to devalue her work.
She was doing this throughunderpricing, through discounts,

(09:43):
and you know, really throughsilence.
Because here's the thing if youdon't communicate your value,
your clients will invent one andit'll always be lower than the
truth.

SPEAKER_00 (10:01):
So good.
So when you think aboutcommunicating, communicating
value isn't about listingfeatures, you know, it's about
painting a picture of thattransformation that they're
going to get.
So instead of your team saying,our blind session start at 250,
actually, we like to do some umaudits sometime, even with our
own salons, is call and ask theprice of something.

(10:22):
And most of the time when we'reasking pricing, it's like, well,
our blonding starts at 250 andthat's all we get.
But like, what if somebody, whenyou call somewhere, somebody
answered the phone, they want toknow the pricing, and they said,
Hey, our signature blondingexperience includes a
personalized color analysis andbond protection and styling that
keeps your blonde healthy andluminous for weeks.

(10:44):
Guests typically invest around$250 and up, depending on their
goals.
Isn't this so different when youthink about it?
Would you rather have your salonanswering the phone of like, oh,
blonding starts at$250 versuslike, hey, you're gonna get
color analysis, you're gonna getsome color protection, your hair
is gonna be healthy, it's gonnahave lots of shine or luminous.

(11:06):
Like, that seems like$250 worthof service.
But to a consumer, if they'venever even been there before and
they're just price shopping,they're not gonna know that,
hey, you get all of that for$250if you don't share it.
So, like in that moment, you'renot just sharing the highlights,
you're sharing how they willfeel when they walk out.

(11:27):
You know, they're gonna feelconfident, they're gonna feel
radiant, they're gonna feelunstoppable.
And that is truly value.

SPEAKER_01 (11:34):
Yeah, you know, there's a dangerous temptation
that I think creeps into everybonus or every um business
owner, you know, when they thinkabout their pricing and it
whispers something like, if Ijust drop the price a little,
maybe more people will say yes.
You know, and it feels smart inthe moment, but it's not

(11:57):
strategy, it's survival mode.
And survival mode never scalesbecause when you price from
fear, you attract more fear.
But when you price fromconfidence, you attract
abundance, you know, and that'swhat Jen was just talking about
with those two differentscripts, you know, because the

(12:19):
truth is you can't build aluxury brand from lack.

SPEAKER_00 (12:26):
And let's see, it reminds me of we just were in
Charleston doing a decade and aday.
Um, so if you want to know learnmore about what a decade and a
day is, text decade.
We'll give you the number herein a minute.
But it's a beautiful way to take10 years of knowledge and
compact them in one day so thatyour business can grow 10 times
the possibility that you everthought.
And while we were there, um thehotel we stayed at, remember

(12:49):
they had all those luxury names.
It's like when we called, theysaid, Hey, you know, Mrs.
Lowe, we're gonna have, or MissLowe, you're gonna have your uh
butler waiting for you when youcheck in with uh your favorite
beverage.
Like, what butler?
And so just that elevatedlanguage helped us to see the
value because these were notcheap rooms.
If you've ever been to theCharleston, South Carolina,

(13:11):
South Carolina area, you'restaying downtown.
I mean, they're gonna run youseven, eight hundred dollars a
night easily.
And so, like, you start to seethe value when you match the
language to that, or give the orhelp the guests see, hey, what's
in it for them?
And so, you know, we did get ourbutler if you're wondering.
And yes, he did put our luggagein a room.
Yes, he did turn our bed down atnight.

(13:31):
Yes, he did put little samplesin our room of little chocolates
throughout the time.
And so, like, we see that thevalue aligns with the price that
we paid, you know.
This even reminds me of a of astudent that we had in salon
business school who raised hersalon prices by I think it was
nearly 35%.
And I remember she wasterrified.

(13:52):
You remember that, right?
She was terrified, and she said,half of our guests are gonna
leave, though, pump the brakes.
Um, and I think she told us thatlike one to two guests left.
Um, and also, you guys, thatguest that left was the one who
always complained about theprice.
Imagine that.
They always rescheduled and theyeven, you know, sometimes asked,

(14:15):
Well, can I keep the price downif I bring my own color?
What in the world?
You know, the rest, theyactually respected the move.
They understood because likeconfidence is contagious, and
when it when you price withclarity, your team mirrors it,
and when you waffle, your teamwobbles too.
And so your prices set the toneof the energy of your entire

(14:38):
company, so good, you know.

SPEAKER_01 (14:42):
And I think one of the biggest mindset shifts you
can make is this you're not foreveryone, and that's your power
because every no creates spacefor the right yes.
And every time someone saysyou're too expensive, thank them
silently for filteringthemselves out.

(15:05):
Because when you try to beaffordable for everyone, you
become unforgettable toabsolutely no one.

SPEAKER_00 (15:16):
Yeah, so good.
So if you want to know whetheryour pricing is aligned, we have
this amazing gift that we'regonna give you.
We also want you to ask yourselfthese three questions.
Um, does your pricing does itreflect my true cost and profit
goals?
So, does it reflect your truecost and profit goals?
You definitely want to dive intothat.
Does it represent my brand anddesired positioning?

(15:39):
Who do I want to be viewed as?
And does it make me feelexcited?
Does it make my team feelexcited to serve at that level?
And if you're resentful when youswipe the card, you're actually
undercharging.
And if you're nervous but proudwhen you quote it, you're right
back on track.
Like pricing should never shouldfeel like you're wearing heels a

(16:01):
little elevated but empowering.

SPEAKER_01 (16:05):
You know, because discounts don't just cost you
money, they really cost youmomentum.
And every time you run a sale,you know, we're not saying don't
ever run any sort of productspecial, that's different.
Um, but every time you run asale on like cutting or coloring
or something, you know, somesort of service, you're teaching
your guests to wait for the nextone.
You know, you're teaching themthat your value fluctuates.

(16:27):
But here's what the best brandsknow value doesn't go on sale,
excellence doesn't go onclearance.
And if you've trained yourclients to expect discounts, you
can retrain them.
Just start by adding in layersof value instead of lowering
your price.
Add a luxury head massage, add,you know, a color analysis,

(16:52):
create and use better languagebecause you don't need to be
cheaper, you need to be clearer.

SPEAKER_00 (17:00):
Yeah, so good.
So here's your challenge for theweek salon owners is to audit
your pricing, ask yourself, hey,is it rooted in fear or in
faith?
Is it built on scarcity or onservice?
And if you're ready to pricelike a pro, there's no better
time than now.
And we've created our free salonpricing calculator to help you

(17:22):
find your profitable, confidentnumber for every service.
So just text the word pricing,P-R-I-C-I-N-G to 469-283-5590.
Again, that's pricing to469-283-5590.

(17:44):
We'll send it straight to yourphone because the truth is the
price is right when you are.

SPEAKER_01 (17:51):
Yes, I love that.
And also, Jen mentioned thedecade in a day earlier today.
You can also text the worddecade, that's D E C A D E to
the same number, 469-283-5590.
And we'll send over some moreinformation about our decade in
a day program.
And if you've gotten someamazing tidbits from today's

(18:12):
episode, share it with anothersalon owner that you just think
is great.
Um, help them learn about thefree pricing calculator.
And never forget, this is theperfect season to do a price
increase.
No matter when you're listeningto this podcast, but especially
if you're listening to it rightnow, inside of third quarter,

(18:32):
when everyone is in spendingseason.
Thanks for tuning in.
We'll see you soon.