TEST YOUR PRICE STRATEGY KNOWLEDGE
In most cases Salon Owners have never been taught how to accurately calculate and prepare their price strategy, and almost certainly have never prepared an effective price rise strategy. Try this quick Quiz to find out how in-depth your knowledge and how strong your Salons Pricing Strategy really is. Be Honest, Give yourself 1 point for each “YES” answer, remember this IS NOT a game this is about YOUR business Profitability. If you didn’t answer “yes” to all of the questions we can help you improve your profit dramatically. If you answered “yes” to all you don’t need our help to maintain your profit margin.
1) Do you Accurately recalculate your Hourly Price rates every time your business situation changes (i.e. staff level changes, wages rises, downtime fluctuations, product price increases etc).
2). Do you add the cost of downtime to your hourly seat time price.
3). Have you removed the cost of Retail Sales from your Seat Time Price.
4). Do you understand how Market and Competitive Pricing restricts your business growth and why this model needs to be minimised in your strategy
5). Do you know the seven steps required to calculate your Cost + Margin Seat Time.
6). Have you set a price for the perceived value in your service and have you compared that to the perceived value offered by your Competitors to allow upward price movement.
7). Have you performed a demographic model selection on your database to determine your preferred client model, have your surveyed this model to determine what they value.
8). Can you describe the 5 best Price Structure Models used to create an effective Price Rise Strategy.
9). Do you know how to set accurate productivity benchmarks for your staff. (3 or 4 times your wage is not an accurate measure)
10).Have you added bonus and commission costs to your hourly seat time price.