How To Price Your Salon Spa Services When You Have No CompetitionChristopher Brazy
Business is slow, what should you do? Lower your price! Right? Or wrong? Think you can win over more clients from your competition by being cheaper? Or are you worried they’re less than you? Price, price, price. Live by price, die by price. We think it’s the only thing clients want, right? It’s the first thing that comes to mind when working on your business.
Let’s begin with a question. Who wins in a price war? No one really, not even the client. You may get more short term business, but then someone will come in lower than you and you’ll have to go even lower …then it’s just a downward spiral.
When we make a commodity of ourselves (like gasoline) we’ve just doomed ourselves. People will then shop by price, since we’re all the same anyway. Then we have to lower our price to compete, then the competition lowers theirs, then a third spa comes in lower than both of you. They can’t afford to pay for anything so use wet-wipes for facials and don’t change sheets for massages. They lose, you lose, the other guy went under and the client loses too. Clients end up with the worst possible service from underpaid staff. It’s a lose-lose situation.
There are factors other than price that determine our worth. Price is only the determining factor if you are a commodity. When we’re all identical then there is no other way to differentiate ourselves. BUT as long as we are different, then price isn’t a factor.
Look at any industry. Fashion, department stores, automobiles. Any brand within an industry does essentially the same thing as the others, but then why is a Mercedes so much more than a Kia? Why does Neiman Marcus command more than Wal Mart? Because of perceived differences. Because they aren’t a commodity, they aren’t the same. They are unique.
When we are all the same, that is when there’s a problem. When our ads have the same ol’ laundry list of services with a picture of a candle …how do clients differentiate us? We look identical. We sound the same. We must be the same. So what will clients do? Well, they’ll compare the way the compare any commodity, by price.
Then someone comes along and does something just WOW. They pick you up, drop you off, serve you wine and chocolate and don’t accept tips. They are DIFFERENT. They are no longer a commodity. Price isn’t an issue since they have no competition. People don’t think you’re expensive since there’s nothing similar to compare you to. It’s a Win-Win situation.
Avoid the downward spiral of a price war at all costs. The laser clinics in our town have yet to learn this. One does sales constantly, the other comes back and offers 50% off. They feel they do the same thing and the only way to get new clients is by price. All they are doing is bringing the entire market down.
Differentiate yourself. Promote your USP, accentuate your differences. DON’T WORRY ABOUT PRICE. Worry about how you can DIFFERENTIATE YOURSELF.
Take time NOW to look at how your clients see you and what you’re putting out there for them to see. Is it different or the same as all the other spas out there. How can you make it even MORE UNIQUE? How can you better cater to YOUR clients? YOU have no competition. This is crucial in your future. Plan it out, take action and implement it!