Pricing Strategies

Have you ever sat down and wondered how to finally set the “right” price? Is it enough to just peek at the price list of the neighboring salon, or should you calculate the cost of every haircut and eyelash treatment on paper? In reality, pricing is much more intriguing than it seems at first—and honestly, this is where you decide whether your salon business will thrive or not.

Let’s explore the most common pricing strategies used in the U.S. beauty industry that you can skillfully combine—and at the end, there’s a golden tip that you might not have imagined yet.

1. Cost-Based Pricing: Simple Calculator, Clear Rules

The rules here are straightforward: tally up everything “spent” on serving one client (materials, hourly labor cost, a portion of rent), add your desired profit margin… and the result is your service price!

Why is this good?

• You avoid operating at a loss—no service is priced below its cost.
• Each price is logical and transparently justified.
• Provides peace of mind for new business owners.

But the downsides…

• This method doesn’t consider how much clients are actually willing to pay for your service.
• If a competitor charges half the price, you might lose potential advantages—or forget what makes your salon unique.

From here, it’s worth asking: what true value does your salon offer, and could that justify a higher price?

If you want a more detailed overview of analyzing your salon’s expenses and profitability, check out SalonLife’s guide on calculating beauty salon startup costs.

2. Value-Based Pricing: How to Make Your Client Delight in Your Price?

Have you noticed why some people are willing to pay more for your service—even though they could get the same service seemingly cheaper elsewhere?

This strategy prices your service based on how unique the client feels the experience is. Your skills, attention, salon atmosphere, luxurious products, or simply a pleasant conversation—all add extra value.

How to find the value-based price?

• Find out what your clients truly appreciate most about your salon. (Ask, listen, thank!)
• Clearly highlight what makes your service special—whether it’s personalized attention, cutting-edge techniques, or a calming spa-like environment.
• Dare to charge for that value! Believe in what you offer.

The truth is:

The most successful salons don’t just sell haircuts, manicures, or brow treatments… They sell feelings, experiences, and confidence. When you believe in yourself and your value, your clients will believe it too.

For more insights on skillfully showcasing value and standing out from competitors, read “Successful Salon Strategies to Stand Out”.

3. Competitive Pricing: What Are Others Charging (and Why Should You Care)?

It never hurts to see what neighboring salons are doing: has the price dropped to rock bottom in your area, is there a quality competition, or has someone found a sweet spot?

Here you can:

• Keep your prices near the local average (so you don’t shock clients or lose out on profits).
• As a beginner, try slightly lower prices to attract new visitors—but only enough to stay profitable.
• If you have a stronger brand and distinctive style, you can ask for higher prices—if you truly deserve it (see previous point)!

But be cautious:

• Too low prices might send the wrong signal—are your services “cheap” or even low quality? And simply joining price wars leads only to… the next price war.

If you want to better understand your market position, explore the latest beauty salon trends and statistics for 2025—stay one step ahead of your competitors.

So, What Price Should Your Salon Set?

What if there’s no one right answer? Most successful salons cleverly combine these three strategies! For example:

• Set standard service prices based on the market (to attract new clients without scaring off regulars).
• For especially popular or unique services, confidently apply value-based pricing.
• And always remember that no price should ever be below your costs (you can use SalonLife’s software reports to analyze your ongoing expenses and profitability).

If you need inspiration on how to align your pricing with effective branding and value communication, read “Make Your Beauty Salon Even More Attractive With Effective Branding Strategies”.

It’s a good idea to regularly review your prices, monitor market conditions, and gather honest client feedback. Good pricing isn’t carved in stone—it grows with your experience and your salon’s reputation.

Remember: your price list isn’t just numbers on paper—it’s your salon’s “newsletter” to the world. It shows how much you value yourself and your work, and what quality clients can expect.

If you feel it’s time to take a fresh look at your pricing, then… in the next article we’ll practically explore how to “decode” your competitors’ pricing and position yourself fairly—and smartly! You have rewarding years of growth and learning ahead—why not start pricing smarter as soon as tomorrow?