TPTW ... Are we doing more and more for less and less?

[user 25446]

If you take a broader view, people working in nearly every industry for the past 40 years have been working harder for less. I remember reading several articles a while ago that said in the '60's the average worker had more disposable income. Since then a variety of things have happened, not least globalisation and more taxes by stealth (not directly from your salary).

We should also remember that 20 to 30 years ago nail techs were few and far between, and so could charge a premium. What has happened since then is that salons have appeared that cater to people who can't afford to pay much for nails - as a consequence a new market has been created.

As with any business, it it your choice which type of customer you target. Some people only buy food from Aldi and others buy from Harrods. Some people even grow their own food. All types of food do the job of nourishing a person, but the experience is quite different. Both types of company deliver a perception of value that suits their clientele. And both companies earn vastly different amounts of profit for their products.

With regards to nails, some people want low price, some fast service, some drop in, some the convenience of a home visit and others like a longer chat with their nail tech in a comfortable salon, a more experienced tech who they trust will make good looking and reliable nails, and some people want a spa-like experience. Some celebrities make also want total discretion.

Pretty much where ever you live, they are people who earn good money. If you want to earn more per hour then these are the people you need to attract. Start by empathizing with them, if you were in their shoes and looking for a nail salon what would want and how do the salons in your area compare? How can you appear to be different and stand out?

 

[jocarlislea]

Yes I think its defo a case of there being more people out there doing nails however like anything there is still not that many good ones and I feel we should not undersell ourselves.
I started one of my first salons in the last recession and I was more expensive than the rest (slightly) which made me feel more worthwhile and gave the clients an impression of better quality because that was the category I wanted to be in, now many years later I still try to increase my prices slightly each year and I never use special offers, that way I might have less clients but I am earning the same however it has not worked out that way as I am pretty consistently fully booked.
I have had salons in some of the worst areas and some of the best and to be honest this has not made any difference to me, its having the confidence in yourself, to charge what you feel you are worth and can afford within reason, and always giving 100%.

 

[Doorie]

what we tend to see here is a change in client's need... like the "forever French" that was so popular seems to be let down a bit n replaced by a polish (over enhancement)

and of course this means you have to adapt, technically and "price-ly"

 

[Perfected]

I am in the US, and work in a small spa. (Six service providers and a receptionist.) Our spa is down town, in an up-and-coming area. We have many NNS everywhere, but not too many right around our block. We have fancy lofts at the end of our street that cost double what you would pay anywhere else.

In our spa, we offer massage, skincare, and of course, natural nail care. The pricing is a bit wonky. For example:

Our basic massage is: 50min for $65/ 75 min for $85
Our basic facial is: 50 min for $65
Our basic pedi: 45 min for ....ready?????? $45.

Want another example??

Our express massage: 35 min for $50
Our express facial: 30 min for $40
Our express nail care (hands or feet) 25-30 min for $25.

Everyone in their services at the spa are making more money than I am, for the same amount of time. Why? Too many NSS. Too many uneducated people not willing to pay more money for their nails because, they are just nails. Right now, my books are pretty slow. My expenses are around $500 a month, and I probably make around $600. Yet, the other therapists are doing much better than me. They stay pretty booked. Not every week is super busy, but usually they have more on the books than me. It's frustrating, how people are so willing to drop that kind of money on massages, but scoff at nail prices. The owner offers specials too. Book a massage, get express nail care at $20. (She of course still gives me 40% commision off the regular price).

Even at $45 for a standard pedi, people still view it as expensive when they could get one for $25 or $30.

I would like to start doing gels to try to recruit more clients. But I'm afraid there is no way we could set the prices like we do for massage. 75 minutes for $85? They would never. I guess massage is seen as more necessity since it helps you physically. Nails are considered more aesthetics. Although I could argue otherwise.

We could maybe do a full set for $60-65. Maybe.

 

[Doorie]

2 years ago we ran a poll on our clients and found that the more booked were the most expensive in their area. were also the ones who believed in themselves and prices.

obviously if the client feels she can have the same for less (the same global thing, service, attitude, nails, etc) she will go for less. you just have to offer more, and I don't mean by paying more, but care about her.

my hair stylist is maybe the most expensive of the town, or so. it's 45mins from home, and I go there every week. am I dumb? no I just love the fact that he KNOWS what I love for my hair and the products that just don't work with me.but I could have that with any good hair stylist., closer, right?
but the receptionist knows I love black tea flavored with vanilla, so when I arrive my tea is ready. the assistant brings me my fav magazines, I know them all and they all know me and they bring me a cupcake and everything, everytime. and it's not charged. if I drank champagn, I^d have a glass everytime...
I can always find an appointment even when I call 2 hours before desired time... see what I mean?

it's all the extra things that will make me pay a lot

 

[skymark]

Great thread.

I think its a combination of things. We do live in a time where we expect everything for as cheap as possible. As someone pointed out, there was a day when most things had to be saved up for and cost hundreds of pounds and were luxuries. Although it is nice that the reduced cost of manufacturing has meant we all enjoy lifes pleasures cheaper, it does bring with it a mentality that everything should be handed to us at the cheapest possible price.

Also a large part of the problem I think is how therapists and technicians come to their pricing strategy, being name the price then work out the costs, when obviously it should be the other way around.

There seems to be way too much looking at the what the person down the street is doing and not enough building of unique businesses with individual selling points.

There is more than enough room in the market for all the techincians if they all find their selling point as there is a wide enough client base with different wants, tastes and preferences.

I feel that the industry has become very 'high street' where it is the same thing over and over again just with a different name on the shop, which I hate in retail also. Give me individual stores with uniqueness anyday and I feel the same out the service industry.

All this feeling the need to outprice the neighbours, offer as cheap as possible and not working out the true cost of things absolutely means that some technicians are working themselves to the bone for a lesser pay check each month.

Its easy to say that clients cost of living has increased so they wont pay more, but the technicians cost of living has also increased so why should they be the ones in the poor house.

Sorry if half of that was rambling. Little jet lagged and not making complete sense yet.

 

[jnails]

Take a look at those prices.. is that not mental...? Im sorry but Im charging £25 and believe me its hard enough to find clients but the prices below are just a big joke. how am I supossed to get any clients if she is so cheap...? Im really thinking of writing an emaill to that girl and telling her that she is destroying nail technicians...


that is the copy of her post:
I am a qualified mobile nail technician, working in Edinburgh and surrounding areas. Save your money, save your natural nails with Powder Glaze System, a unique combination of acrylic and resin technology.
My prices are:

*French White tip extensions £12.99

*White Jigsaw/Valley Style tips £12.99

*Fab Red, Pink or Black tips £12.99

*Natural tips £14

*Glitter tips £15
( 4 colours available )

*Manicure £5
(cuticle treatment, file and polish)

*Luxury Manicure £10
(cuticle treatment, hot soak, exfoliating massage, file and polish)

*****Various glitters, rhinestones, nail art available***** ( £1 per nail )

 

[skymark]

Take a look at those prices.. is that not mental...? Im sorry but Im charging £25 and believe me its hard enough to find clients but the prices below are just a big joke. how am I supossed to get any clients if she is so cheap...? Im really thinking of writing an emaill to that girl and telling her that she is destroying nail technicians...


that is the copy of her post:
I am a qualified mobile nail technician, working in Edinburgh and surrounding areas. Save your money, save your natural nails with Powder Glaze System, a unique combination of acrylic and resin technology.
My prices are:

*French White tip extensions £12.99

*White Jigsaw/Valley Style tips £12.99

*Fab Red, Pink or Black tips £12.99

*Natural tips £14

*Glitter tips £15
( 4 colours available )

*Manicure £5
(cuticle treatment, file and polish)

*Luxury Manicure £10
(cuticle treatment, hot soak, exfoliating massage, file and polish)

*****Various glitters, rhinestones, nail art available***** ( £1 per nail )

I wouldn't worry too much. Those prices cant provide an adult wage. They're not sustainable. Most people who underprice so badly are out of business in a very short period of time.

You could compete.....but you'd end up in the poorhouse doing it.

 

[Unique Nails09]

A few comments in this thread state that we SHOULDN'T reduce our prices to fit in with the economic downturn and that is HASN'T affected our trade and our customers will pay for nails regardless of price/lack of money.

This isn't true IMO. For the last 4 months I have had to offer 20% off Full Sets to new customers to get them in! (Usually £40.00). People just don't seem to have the money and consider nails a luxury left for weddings/holidays etc. I have about 10 die hard fans who come back to me time and time again but its so hard to get new customers in when in a lot of cases people are talking about how 'skint' they are.

When i began working as a Nail Tech 7 years ago, our salon was fully booked 80% of the time, in the past 18 months though I have seen regulars dropping off the face of the earth due to their husbands losing their jobs, credit crunch etc. The beginning of 2009 was painfully quiet - Few reguars coming in but NO new customers, and this is true for all the Nail Bars in our area. Perhaps I should have been a hairdresser!

 

[geeg]

A few comments in this thread state that we
1. SHOULDN'T reduce our prices to fit in with the economic downturn and that
2. it HASN'T affected our trade and
3. our customers will pay for nails regardless of price/lack of money.

You have forgotten to add the most important detail which is ALL the above are true ... IF YOU ARE WORTH IT and It also helps if you are at the top end of the market and cater to those sorts of clients.

I'm really sorry to hear that you are suffering through this as I know many are. You obviously have some clients who think you are worth it .. possibly the more affluent ones or the passionate ones who would rather skip a meal than give up their nails.

But I am seeing things from the other side ... of distribution and it is GROWING and has been all through the crisis. Now I know we are at the top end ... but my technicians who have busy salons report to me that they still have busy salons in fact in some cases busier than last year! There has to be a lesson somewhere in that story.

Maybe these businesses are all located in just the right place
Maybe they are all fantastic technicians who give great customer service
Maybe they all do great nails
Maybe they are all well established businesses
Maybe they are all trying harder than ever to hang on to their clients

But I know they are all at the top end with their products and skill and they have not reduced their prices and I know they are not ordering any less but in fact more. They are catering to the clients who have not been affected as badly by the recession. They cater to a niche.

It has also been stated on this thread that the niche of clients you serve is the most important thing. Being high end definitely helps there. The clients with middle and lower end of the scale incomes are going to be affected more. If those are your clients then your business will be affected more.

 

[Bagpuss]

I cant help thinking that the way you look at this situation depends on the circles you mix with, the people you talk too and the places you go. If all you are mixing with is the wealthy and doing well then thats the only side you will hear about....if you are mixing with the larger population who for want of a better phase "live in the real world" (sorry that sounds really pants but i cant think of another way to put it) then you will hear a different side to things.

We have large "posh" salons round here....they are all struggling big time...they stock all the expensive, good quality brands....there shelfs are brimming with them....but have little or no clients...i have seen their staff in my local tesco's pushing leaflets offering "free cuts" into people shopping trolleys. But the small village salons...are thriving.....and not just with the clients who cant afford to pay more....with all sorts of clients...many coming from the bigger posher salons because they felt they where getting ripped off.

No matter how much disposable income you have...no-one like the feeling of paying over the top for something that they can get elsewhere for less.....people are realising that they CAN get the same great quality but without the big price tag.

I think alot of it is about lables....a client of mine goes to a very expensive salon because she likes people to know she goes there....but all she does is moan about her hair not being right to me....heaven forbid she go to Cheep Cuts down the road...even if she does get a better hair doo...whatever would her friends think...:lol:....then you have others who could afford the expensive salon but refuse to pay those prices knowing they can get just the same at Cheep Cuts.....but without the remote control vibrating chairs and the flat screen tv's at every work station.

Its a fact that the bigger you get, the harder you fall and keeping things small and affordable is the safer option.

 

[FlawlessBeauty]

I seem to have done fine throughout the crunch, lucky for me. I rent a room out of a small hairdressers on a housing estate and if anything i've been busier.

I have my prices set and am happy with them.
I plan to increase them;
1. when my costs increase, e.g. rent, product, etc
2. when i'm consistantly fully/ almost fully booked

Everybody is having a tough year, but i wouldn't decrease my prices. I'd much prefer to create an offer where the client gets something a little more beneficial, otherwise i would start doubting myself and feeling like i wasn't worth it.

Its amazing what big impressions the little things leave, like a warming winter pedicure treatment, where you also get a hot chocolate and whilst waiting for the polish to dry, they get a complimentary hand massage.

 

[Howard]

The whole point of a niche is that it is just that. That means that the numbers of people in this market segment are limited. It may be that there are enough to sustain the level of business. In an economic downturn people are generally more price sensitive. I am sure there are people who will pay way above the average for a set of nails and it is surely the case that price alone cannot be the sole marketing strategy that you use either bottom or top end. I for one given great customer service will always be prepared to pay a little bit more to enjoy the experience and will never return to somewhere that I did not enjoy whether that is a restaurant or a nail service.

 

[Unique Nails09]

I agree with you bagpuss, its easy to say 'go for the top end customers' but it all depends on where you are situated, i live in a small town where many of the local shops have closed down.

I hand on heart admit that if i wasn't a nail tech i could not afford to pay for nails, many people have children, mortgages, bills etc and can siply not afford to have their nails done - it has become a luxury again to some and not a necessity - eating and clothing you kids is more important.

x

 

[geeg]

There are different niches peeps!!

Not just the top end ... my goodness it is obvious there is plenty of work at the low end at the cheap discount salons; that niche is doing great as well.

It is the middle that suffers with all the price cuts and competition. There ain't much competition at the top or the bottom.

IT'S THE MIDDLE THAT IS DOING MORE AND MORE FOR LESS AND LESS. In my very humble opinion.

Look at commodities like make up or shampoo etc .. top end sells HUGE ... bottom end sells HUGE .. middle = hundreds of different brands all fighting for the same territory.

 

[wg19]

All I can say to this is that my price today is the same as it was 7 1/2 years ago, (£35) although the average client now takes 1h as opposed to 1 1/2 in the olden days so I guess in a roundabout way my prices have gone up as I am now doing in an hour what used to take me 1.30 (without compromising on quality)!

I work 30 hours a week , love my job, earn more than my sons teacher (& a friend who is a fabulous hardworking nurse) & shoot me down in flames for this but what I do aint brain surgery, so I am more than happy that what I charge reflects what I do & that it facilitates a great lifestyle.

I would however love to know how you leave salon work completely , travel the world, & still have regular clientele that stick with you regardless of what you are charging?? Bearing in mind that clients need their fix every 2 - 3 weeks - pray tell me how to do that & my life would be complete!:lol:

 

[Anna Lee]

I believe I have a market of niche clients, but I only work part time in the evenings due to other commitments in my life so my client base is not that big. The clients I do have however, I kind of 'handpicked'.

I only really have 2 main types of clients - a group of older Jewish ladies whose children have grown up and has all paid off their mortgages, and a group of Asian woman who are all mega rich and live in proper gated up huge detached houses...!! The reccession has not made a difference in either groups of clients.

I got all these clients without any types of advertising whatsoever and simply by word of mouth. One recommended the second and the second recommended the third. All in their own little circle of friends. All in the same social circle and status.

My prices are not high or low, I charge £36 for a set of pink and white sculptures or tips. Usually however, my clients has overlays after I have helped them to grow out their own nails at the price of £29. I NEVER give them discounts even if they refer a friend.

My clients refer me because they like what I do and is confident that their friends will like what I do. I used to do mobile work but recently I have had a small nail room put in my house and all my clients come to me now.

At first, I hesitated to ask the rich to come to me in fear that they will find someone else because they think they are no longer receiving a 'top class service' from me by going to see them at their home. Or I thought I might have complains from the older ladies who think it might be a nuisance to them coming out to the cold and dark in the evenings.

But when I mentioned it, not one single person had a problem and it took me by suprise..!! Yesterday, it was freezing cold and snowing but I still managed to have 3 clients come to me in the evening because they were THAT addicted to their nails.

I have funny working hours and always consider myself as a part-time tech. But my clients are always very good and works around MY schedule rather than me to theirs. One of the reason why I work from home now is so I can spend more time with my children and help them more with their school work. I told my clients straight and every one of them has been happy to support me in my decision and not made a complaint.

So, my point is, that yes, there are niche markets out there if you know who to target and how to target, and yes, they will bend their back for you if you do a good enough job.

 

[mannipatch]

In my opinion nails used to be an exclusive service therefore they held there price.
When I went back to Northen Ireland from Canada in 2003 I was the only Nail Tech in my area and there were very few nail techs.
Now there are hundreds upon hundreds and a lot of them are not qualified. Standards have slipped, there is no government bodys or councils to watch what is going on.
I think the industry should be run the same as Canada and you should have to have a licence from your council before you can operate. The councils enforce the no smoking ban there is a body enforcing playing music (had loads of letters etc) but you can do just about anything else with no questions.
I know people who have set theirselves up as even beauticians with no accreditation at all. Now you would think that couldn't be done but it is and all the time and there is no one to stop it. Anyone and I know of many went to get there nails done, thought I can do that and I will make a load of money. They set thereselves up in a bedroom or whatever and away they went. They did not work out there prices they just rang everyone else to see what they were charging and undercut them to get the business. To be honest it didn't affect me as I had already built up a clientelle and didn't need to advertise etc but it did affect freinds of mine who gave it up as it wasn't worth the hassle. Just too many headaches. I am not surprised that you got £70 per full set back then. But as stated before some items have went down in price. Wages have not went up and I am glad now that I am over here because the home market is way to saturated.

 

[brittone05]

This subject is one of the hardest things I think a new tech can face ( or at least I am worried about it )

How can a tech build a client base without underselling themselves while still staying competetive?

 

[redsadie]

This is a really old thread, but one I think is still as relevent today as it was back at the end of '09.

I built up my client base by doing close friends and family 1st. I did my sister at double cost price (yes I worked out how much each set costs) and the other family and close friends I did at triple cost.

This was until I was comfortable with my ability. That was two years ago.

My friends and close family obviously referred people to me they knew, as people ask about nails and where you had them done (if they look good!), these referrals I charged at my full price of £25 (I had expressly told my f&f's not to say how much they were being charged as then I wouldn't be able to charge a 'proper' rate and therefore their nail price would have to go up). This was for either p&w or natural.

I now still charge £25 for natural, but charge £35 for p&w and 'from' £45 for anything else such as glitter, specialist shapes such as stilletto or lipstick or fancy nail art. Bearing in mind I have just come back into the industry after taking 8 months off and am working to build my client list again. I have increased my prices according to:

a) What I like/prefer doing!
b) How long it will take
c) Because I have been trained by (imo) the best in the industry and use premium products.

Once I have established my client base again I will increase my prices again, only by a few pounds but by doing this, I will sort the wheat from the chaf so to speak and be left with clients who appreciate my workmanship and are prepared to pay just a little more, and who I like to work with!

I do however have spray tanning and waxing as 'extras' to offer, I think you do need to be a little diverse, but I consider myself to be a nail technician first and foremost, and always advertise as a 'Creative Nail Technician'. This may mean nothing to many or it may mean something to some, but to me it means everything!

I would like to charge more, I'm not being big headed but I know am good, but I also know I can be better. This is what I strive for and to be able to do a set in under an hour (which I'm sure a lot of techs on here struggle with) once I achieve what I set out to do, again, my prices will rise. I am practising again every day with a renewed passion and my 'handy Mandy' nail trainer is right there with me.

I think although I am in a different league, and I shouldn't refer to the local chop shop as competition, in effect that's how I see them. It's my job to try and educate new clients (and even just people I talk to) that having a nail service shouldn't ever hurt, make your nails thin and weak or make you bleed!! Why anyone would pay for this type of treatment I really have no clue (except they get done in as little as 40 minutes).

In reality, the people who do frequent this establishment, I don't really want which is why I will put my prices up. They are after a pricing service, not a 'time out treatment', but I still want to educate the world, lol!

I'm not sure I have addressed anything Geeg originally asked in her op, but I do charge already a little more than the little competition I do have (as far as I can see). I have never been in a price war and nor do I ever intend to be. I don't give discounts, I 'add value' to treatments such as the hot chocolate in the winter, I remember what drinks people have, I remember their family and where they went on holiday (admittedly I write all this down on their cards but hey, I'm only human, lol!)

I don't think i could at the moment charge anywhere near £70 for a full set, but I am aiming to target wealthy areas (although sometimes you find the council estates actually have more money!) research areas, ask people questions, be interested and add value and your clients will not go anywhere else.

Just my £4 worth (inflation, lol!)

Sarah. xx

P.S. I think I made some sense in my ramblings, it is late and sorry about the essay!