It's fascinating to consider how many seemingly similar beauty salons can be found on a single small city street—but is there one that truly reflects your unique style? Whether you're just starting out or looking to update your salon's pricing for a new era, one thing is clear: finding the perfect price isn't just about math; it's a little puzzle involving competitors and market expectations. How do you set prices that truly give you an edge and highlight what makes you stand out? Let's dive into the world of competitive analysis!

First: How to swiftly peek behind competitors' prices without sneaking around?

It's incredible how much valuable information is already at your fingertips. Start with the simplest step—Google it. Look up the bigger and smaller beauty salons in your area. Browse their websites, check out their Facebook and Instagram pages, and explore booking platforms. Often, price lists are openly visible. If not? No worries—you can confidently call or visit the salon in person and simply ask. Many owners do this regularly to keep tabs on the market.

But don’t stop at prices alone! Pay close attention to what their services include. Do haircuts or gel manicures come with tea, free consultations, especially cozy interiors, or enticing package deals? Often, it’s these small details that determine whether a price seems attractive or unjustifiably high. A smart tip: create a simple comparison table listing all key services (haircuts, manicures, etc.) and analyze why some places charge more—maybe they’re already including some cool added value?

If you want to analyze competitors’ marketing and how they engage clients on social media more skillfully, be sure to check out 5 Effective Social Media Post Ideas for Beauty Professionals.

Is your salon ordinary? Absolutely not!

Now that you have a clear picture of your competitors, make an honest list of your strengths. Perhaps you’re a superstar in a niche—holding international certifications, offering a new technique or product unavailable elsewhere in town. Or you provide exceptionally personalized consultations, world-class brands, and natural products. Maybe your sense of humor is unmatched, leaving clients in great spirits as they leave? That is truly valuable.

For example, if you’re the only salon using Purest by SalonLife’s eco-labels, that’s already something special! Does any competitor offer baby massages or haircut sessions combined with practical hairstyling workshops? These unique nuances are exactly what allow you to add some sparkle to your prices—or, when needed, to attract clients with slightly lower but always justified rates.

If you need inspiration on how to better showcase your salon’s advantages and uniqueness, also read Proven Advertising Strategies for Hair Stylists to Gain More Clients and Successful Strategies to Make Your Salon Stand Out.

Your prices tell a story: are you luxury, a sales magnet, or budget-friendly?

Be honest about the image you want to create. Who do you want to offer your services to—a price-sensitive client looking for a bargain, or someone who values luxury and is willing to pay more for an exceptional experience? Think carefully about which pricing tier you truly belong to.

Here’s a quick checklist:

  • Do you offer more than others (expertise, certification, extra comforts)? If yes, you can set your prices a bit higher—but don’t hesitate to emphasize it proudly!
  • Do you want to attract new clients safely, without risking your profits? Consider offering slightly lower prices on some services while adding a wow factor—like the fastest service or the longest opening hours.
  • If you’re a master of mid-range price and quality, highlight this clearly in both pricing and descriptions—phrases like “premium quality at an affordable price” or “well-trained specialists, always personalized.”

Boldly communicate your value in your price list and service descriptions. Clients greatly appreciate knowing, for example, that you use only high-quality professional products or accommodate special requests even before their appointment.

For valuable advice on pricing and positioning, check out How to Create a Comprehensive Beauty Salon Marketing Plan: Your Path to Success, and strategies to boost your salon’s visibility in the article Increase Your Salon’s Appeal with Effective Beauty Salon Marketing Strategies.

Set your prices wisely: don’t rely on luck, rely on analysis

Once you’ve mapped out your competition and your strengths, it’s time to set your prices for real. Keep these in mind:

  • Too low a price may seem attractive at first, especially when starting out, but it can quickly erode your profits and create a “cheap work” reputation.
  • Too high a price will scare clients away—unless they clearly understand the value they’re paying for.
  • Ask yourself: does this price cover your costs, allow profit sharing, and enable future investments?
  • Prices aren’t set in stone! Update your price list at least once a year or whenever you notice market or cost changes.

Confidently create a “price range” that includes some introductory lower-priced options for newcomers and premium variants for loyal clients. If you’re using salon management software (for example, SalonLife salon software), you can update your prices and offers quickly and easily. This way, small changes become instantly visible!

Three allies to help your prices win:

  1. An insightful data table – helps you immediately see where to position your prices.
  2. A frank look in the mirror – helps you understand exactly what your clients wholeheartedly pay for.
  3. The courage to adjust prices when needed – the more flexible you are, the stronger your market position.

Now that the secrets of competitive analysis are unraveled, you’re one big step closer to creating a well-thought-out and confident price list. But what if you discover you’ve been underpricing some services or haven’t factored in material costs at all? That’s exactly what we’ll cover in the next chapter. Did you know even small details—like wipes or gloves—can impact your profits more than you might expect? Next time, we'll explore how to accurately and cleverly calculate the costs behind your pricing!