Too many salons price their packages in a way that is simply not conducive to profitability.

They have too many options to choose from which leaves the customer confused and unable to decide. Worse than that, this confusion causes the customer to choose the safest option, which is likely the cheapest option and that is not good for business. Here are few tips to address this issue:

  • Remove Clutter: Review your packages/pricing and remove clutter – if some packages are too close to each other, either in price or value, then merge them into a single package.
  • Add Value to the pricier option, and drop the cheaper option: If you are having difficult deciding which package to keep, add more value to the higher priced package and drop the lower priced one. As an example, let’s say you have 1 week package and a 2 week package. Drop the 1 week package, and add a bonus week to the 2 week package thus making it a 3 week value for the price of 2. Market it as “If you buy the 2 week package, I can give you the third week at no charge”
  • Value of a package should scale up faster than price: While this is common sense, a lot of salons price package linearly – meaning double the price, double the value. That is bad way to price because it does not encourage a higher priced package. Rule of thumb is that if you double the price, you should triple the value for this to be attractive to your customer.

 

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