Pricing-please help!

[loveyourlocks]

On Monday I will be opening my business...Il be renting a room above another salon, which originally seemed like a great idea as it would e a good starting place and I would be paying the salon owner a set price each day which would cover all over heads, I would b in charge of advertising, and ordering stick for myself, have full use of their staff room and toilet which is all great but I've been speaking to a friend of mine who works in the salon below and her boss has told her I will be charging the same as them, this is something I never agreed on, I have built up a good clientele from doing mobile which I do cheaper as didn't have the over heads I don't want to be putting my prices up by up to £30 for a colour service but don't wanna seem a threat to the staff already here :/ surely I can charge what I want? Any advice greatly received!! X

 

[BannerPenguin]

Get clarification from the landlord but you should demand to charge what you want.

To be honest if landlord owns downstairs salon he has told them that to just keep them happy. Hence that salon owner now telling the staff what she was told.

Either way I think it might be a difficult situation. If the owner downstairs isn't very professional you can pretty much guarantee she won't be sending people up to you and potentially bad mouthing you. Depends on the layout of the building. Do people have to go through the downstairs salon to get to you?

 

[loveyourlocks]

Thanks for your reply...the salon owner rents the property and as far as I am aware the landlord has no involvement with the business...

the salon has a more mature clientele so I have stated I will not be doing sets/perms etc which I thought fair, also meant I wouldn't have to spend out on products for these treatments, where as I have a younger clientele..

I have spoken to a few people and some have said to stick with doing my mobile clients outside of the salon, but the idea of having a base is so my free time is my time, I do have a life too!

I get a lot of trade through word of mouth and Facebook and quite often have people message to book an when they ask how much they query why it's more than such and such payed Id rather do it for a lower price than have to explain why it's more and they don't end up booking.

I will be trading under a different name, paying for all my stock, advertising etc so surely she has no right to see my books to know what I am charging?! As long as she gets her money each week?

The salon will share a front door, mine is straight up the stairs and theirs is to the left, I have been told I can share their phone line (cost included) and reception area (as my room isn't really big enough for a desk) but most clients text/Facebook to book closer to the time..

I think it's more for the walk in clients..she doesn't want to loose clients ditto me being cheaper

 

[loveyourlocks]

Sorry pressed send before I finished....

Sorry for the long reply/rant, obviously I want to be successful just don't want I tread on anyone's toes in the process
X

 

[BannerPenguin]

Right ok so the salon owner is renting directly to you?
You really need to call her and say are you aware I will be charging what I want?

She has no rights to see your books but she will surely see your printed price lists etc. Also I would be unsure if using there reception if they will book them in for you or for themselves! Without you taking the call it will be a bit iffy. However like you say it may not be too bad because you get most of your work via text/fb. I wouldn't be advertising there phone number to call I don't think...

 

[Steph86]

Have your own number- even if it is a mobile, you need to be in charge if your own appointment book-what if someone books a time you cant do? Or with a massive gap? Etc lots of problems could arise.

As self employed you can make your own pricelist, & I suggest you take your own payments.

You will be a business within a business.

Good luck xx

 

[loveyourlocks]

Thank you...I have my mobile number on my cards, I have posted the salon number on my business Facebook page as I am out of the country at the moment

I never really follow price lists as I tend to charge by how long it takes/how much product I use etc... I thought as long as she gets her money...it wouldn't matter how I was making it (as long as legal obviously)

when I originally went to discuss this with her pricing came up in conversation and I took a copy of their pricing (they don't supply price lists) and agreed I would use them as a guide...I get the majority of bookings due to the fact I am quite quick at colouring so can charge less as can do more clients in one day...

I haven't got a contract with her, which works well for me as if it doesn't work out I can walk away with nothing to loose and no large amounts of money to pay...
X

 

[BannerPenguin]

I think by saying you was going to use them as a guide she expects you to practically charge the same.

Also having no contract might seem really great now but does go both ways. Your rent could be XYZ now and when really busy go up massively or she could boot you out all together and get one of her staff in there?

 

[loveyourlocks]

I know what your saying about the contract side of things and have thought over all the pros/cons, but if she were to suddenly increase the rent...there's nothing in writing to say I have to pay.....

my partner has a stable, very well paid job and I have been fortunate enough to live off his income for the last 6 months, so I know if she were to increase it (realistically) we could still survive...

There are 2 other girls that work in the salon below, both of which are employed and have been there for many years. So this is something I highly doubt she would do.

Thanks for your comments, and advice I have decided to continue with what I am charging my existing clients, but advise of a 10% price increase due to new premises and charge new clients according to the salons rates

Thanks again
X

 

[BannerPenguin]

It sounds like you are in a fortunate position and think you have got a good approach so I wish you all the best and hope it goes well for you

 

[loveyourlocks]

Thank you very much, yes I am very fortunate!

your advice is greatly received

Kind Regards