How is your color paid for?

Salon owners aren't ⭐just⭐ salon owners, but we don't have to tell you that. You all wear many, MANY hats... salon owner, stylist, manager, marketer, accountant, therapist, the list goes on! Sometimes when there are so many shoes to fill, things like bookkeeping get swept under the rug. 

This task is by no means the most glamorous or exciting part of owning a business but, let’s be real - without keeping a close eye on it, you will be in the red, and you will be in the red fast. Have you ever stopped to consider how much each color application is really costing your salon? It's crucial to know these numbers inside and out to ensure sustainability.

There are three ways you can cover the costs of your salon:

1. The Salon can eat the cost
2. You can pass the costs onto your stylists
3. Or, you can charge the costs to your clients

Let’s go over each scenario and decide whether or not each is fair and transparent.

Scenario 1: The Salon eats the cost

This is the most common scenario that we see when we onboard salons. Owners feel like it’s their responsibility to cover any costs that occur inside their business. While this is mostly true, covering the costs of color used during each and every service is just not realistic. Why? Because color used to achieve the range of services performed in a day, it’s so variable that it’s impossible to keep consistent margins and bring in profits from service to service. A one size fits all model, doesn’t cut it. No two manes are the same.

Scenario 2: Stylists eat the cost

This is a recipe for disaster and as our in-house SalonScale expert, Whitney says, “it will go over about as well as you think it will - not great”. Some common feelings that we’ve had voiced to us are:

• Distrust
• Feeling as though they’re being “stolen” from
• Resentment

While we understand that salon owners feel frustrated when stylists mix without a thought in their mind that someone has to pay for all of this color… we promise there is a simple solution.

Scenario 3: Clients taking on the cost

Picture yourself going to the mechanic and them handing you this invoice at the end of your service 👇

What is the first thought that comes to your mind? Let me guess.. “What exactly am I paying for here?”. Something like this would never happen, so why is it still happening in the salon industry? We understand the feedback of “It’s a luxury service, I don’t want my clients to feel like I’m nickel and diming them, I don’t want the bill itemized, I don’t want them to see what I had to pay for in color”. Like we said, they are seeing their invoices broken down at every other service appointment, so why wouldn’t we do it?

When the client sees that they’re paying for the exact amount of color used on their head during their service, this brings a new level of trust and confidence. This is where parts + service pricing comes in. Your clients deserve transparency, data, and a black-and-white breakdown of exactly what they are paying for! 

Curious to see how SalonScale and our pricing method can make an impact in your salon? Book a call with one of our SalonScale experts, here!