Are you a wig stylist looking to maximize your profits and attract more clients? Pricing strategies play a crucial role in the success of your business. By implementing the right pricing techniques, you can increase your revenue and build a loyal customer base. I help many businesses and stylists thrive, here's some effective pricing strategies tailored specifically for wig stylists.
1. Value-Based Pricing
Consider a value-based pricing model, where the price is determined by the perceived value of your services rather than the cost of production. Take into account factors such as the quality of the wigs you use, your expertise, hourly rate and the overall experience you provide to your clients. This approach can help you capture the true worth of your services. Create different packages with varying price points, such as blow outs, ponies and hair ups, each offering a different level of service. This allows clients to choose styles that best fits their needs and budget.
2. Calculating Prices
I see artists quote a flat rate for styling a wig that customer supplies or they'll offer to purchase a wig on behalf of their client at cost. Flat rates are the easiest way when starting out to practice, but when making it a business, consider sourcing materials that have a profit opportunity. I recommend quotes which include the base wig (at retail cost), hourly labour rate and expenses to cover tools, pins, hairspray, wig head and packaging. Expenses should also factor in overheads such as business rent, utilities, insurance, tax and national insurance contributions, admin and accountancy. Not forgetting holiday entitlement and pension contributions you'd like to put aside for the future. Use your annual projections to calculate what proportion of overheads you will need to factor into each quote.
3. Hourly Rates and Minimum Wage
You need to be realistic when setting your wage, what do you want to earn to have the lifestyle you desire? The minimum wage hourly rate in the UK was £12.21 when writing this. A standard wig takes around 8 hours to set and style so charging £97.68 in labour would put you on minimum wage. If you are supplying a good quality wig with a retail value of £65, the very lowest price to cover minimum wage only would be £165 plus the cost of wig head, package materials and shipping costs combined into a shipping fee of around £15.
4. Take Deposits to Cover Costs
Most stylists take a deposit for work they undertake, the industry recommendation is to take 50% upfront and ensure your client understands it is non refundable. 50% should cover all costs to purchase the wig and cover your loss of wage, tools and materials needed. It is a fair way for you to not lose money in the event of cancellation or non payment for the finished product. Never hand over wigs until full settlement is complete! You may need to advertise the wig to find a new buyer, avoid attaching that it was a 'failed commission' as that can affect customer perception of you.
5. Set Up Business and Professional Accounts
Choose professional suppliers who offer wholesale and professional discount to help you make more profit. The biggest misconception I frequently discuss with stylists is their own limiting belief that they will secure more work by buying cheaper wigs to lower their prices! The facts are simple, materials are lower quality so the finish is visibly less desirable and they do not last. Customers don't have cheap desires and being known for penny pinching on supplies isn't a great strategy! Buying cheap unbranded materials reduces your perceived value and customers are more likely to choose stylists with premium suppliers. You should aim to give a wonderful experience, educate your client and source quality materials to exceed their expectations. Give them a beautiful catalogue of shades to choose from and explain the benefits of the materials you invest in. Its an exciting investment for customers and they will feel confident that they've chosen a competent professional who offers great value with high quality materials.
By incorporating these pricing strategies into your wig styling business, you can optimize your potential and stand out in a competitive market. Experiment with different approaches to see what works best for your business and don't be afraid to adjust your pricing strategy as needed. Remember, pricing is not just about setting a number – it's about creating value for your clients and building a sustainable business for yourself.