In this time of COVID, it is important to re-look at the pricing in your barbershop. Carl Hinder, a barbershop expert business consultant, developed a clever equation on how you can set the price in your barbershop.
Few of the impacts that will affect your barbershop business is social distancing, PPE and sanitizing and because of this you need to make sure that you’re charging the right price to your customers.
Carl Hinder created a method for establishing the right pricing and focus on the correct pricing rather than what is low and high pricing.
According to Carl, over the past months many business already received rent holidays or mortgage holidays, grants and other types of financial support that can add up to their accured debt and willy surely catch up with them.
Due to Covid, many barbershops are already on their break even situation. This is the most crucial time to review your pricing to make sure you are charging the amount for your services.
See Below Carl’s Steps on How To Set The Right Prices In Your Barbershop
First Step: Make list of all your overhead expenses from small to big expenses.
Second Step: Add them all for an annual total
Third Step: Add the profit that you want to achieve
IMPORTANT NOTE: This is important for you to think about. It should be justifiably deserve since your taking a big risk at this of pandemic.
Fourth Step: For montly breakdown, divide it by 12. For weekly breakdown, divide it by 4. For daily breakdown, divide it for number of working days per week and For minute breakdown, divide it by 60. You now see the gross cost per minute for your barbershop business
Fifth Step: You need to multiply the amount by the average time it takes for providing the service. For example, 50p per minutes cost for a 30 minute service is equals to £15.00
Carl Hinder said that many barbers are worried in putting their prices up because they are worried to lose a lot of their customers. If they will used the steps mentioned above as their price guide for their barbershop service, then there is a 70% possibility that you’re not charging the right amount to your services right now.
He also added that when calculating and adjusting prices for your services, you might initially lose some of your customers but will surely give you profit. He also advise not to justify or apologize for your price increase.
One of the believes of Carl is correct pricing is the core of every business strategy and without pricing that is based on fact, none of the other ways to grow a good business will work efficiently.
If you offer a barbershop services, it is about time to think if you’re charging your customers right since we are experiencing a COVID.