Competitive Pricing for Salon Success

Article Published in Stylist Magazine, March 2011



“Nowadays, people know the price of everything and the value of nothing.”
Oscar Wilde


Spend any time in the beauty industry and you’ll soon recognize the first words of most potential clients: “How much is a (insert name of service here)?” Like most nail professionals, you instinctively answer with the price. But no matter what that number, the answer will be wrong. Why? Because without context, a mere number is essentially meaningless. It assumes that all services are created and delivered equally from salon to salon, and it cannot possibly capture the nature and quality of your service. Clients cannot appreciate the value of your work when they don’t understand what they’re paying for. It’s your responsibility to communicate that value.


Whether just starting your salon business, or reinventing an existing one, the decisions to be made can be overwhelming. One of the most important is how to structure and price your services. Overpricing will discourage potential clients initially, while underpricing will discourage you eventually. The only thing more frustrating than clients taking advantage is the realization that it’s your fault. Ideally, your service prices will strike just the right balance between being competitive (attractive to potential clients) and
providing adequate compensation (enabling you to earn a living doing what you love . . . nails!).


Important decisions related to service pricing require doing your research, but not the kind that you might expect. How many times have you been advised to contact other salons and ask about their pricing to determine your own? That’s just as useless as when a potential client asks the same question. If you want to make the common and misguided mistake of competing on price, then contact other salons. But what’s the point unless you also find out what their salon costs are? Few salon owners would be
willing to share that information, even if they knew.


Doing your research means accounting for your own costs:

• Lease
• Equipment and supplies
• Utilities (telephone, water, gas and electric, etc.)
• Outside/professional services (payroll, accounting, laundry, etc.)
• Licenses (business and professional)
• Insurance
• Taxes (payroll, sales, property, etc.)
• Marketing/advertising
• Education
• Professional memberships
• Payroll, or your time if you work independently

These costs vary so widely from salon to salon that it’s imperative that you do this for yourself, and make every effort to reduce these costs whenever possible.


Even with this information, you’re not prepared to make good decisions. Considering that income generated from nail services depends on the active participation of service providers, time must be accounted for before pricing can be determined. The time required to complete the service should be minimized as much as possible to avoid wasting your time or your client’s. To maximize time (your greatest resource!), your services need to be structured deliberately to achieve the desired results: the
procedures organized step-by-step and the products and tools selected for each step. Every procedure, product and tool should be evaluated for its safety, efficiency and cost-efficiency.


For every service, you need to calculate the product cost, including both disposables (files, gloves, nail wipes, etc.) and consumables (polish, lotion, acetone, gel, etc.). Once calculated, that number. along with the time required to complete the service can be used in the following formula:


Product Cost + $1/minute = Service Price (Round up to the nearest $5 increment.)


For example, our pedicure costs $3 in product and takes 45 minutes. Our service price is $3 + $45 = $48, but rounded up to $50. The product cost percentage is $3/$50 = 6%. Ideally, the product cost should be lower than 10%; otherwise, that service may not be worth offering.


Before you question the feasibility of earning at least a $1/minute, let’s discuss. For nail professionals who believe that clients in their particular area won’t pay $1/minute, ask yourself what the standard hourly rate is for massage. Given your diverse skills and significant investment in education, equipment and supplies, your work should be worth at least the equivalent of that of a massage therapist. And for nail professionals who don’t think they can charge $90 for a pink and white backfill just because it takes 90 minutes, they’re right. What’s taking so long? Every service offered should be doable in an hour or less. Developing your skills and being more efficient will reduce the time required and move you closer to that $1/minute minimum.


To market your services, publish enticing service descriptions that detail what’s included, the time allowed and the price. Your salon policies (appointments, cancellations, payment options, etc.) also need to be explained in writing. Despite the accessibility of the internet, salons still need something tangible to present to potential clients, so a brochure is a must. When asked about your service prices, whether in person, by email or phone call, be prepared to ask some questions to determine which service, if any, best meets the client’s needs and to focus on its value, not the price.

By Jaime Schrabeck, Ph.D.

What Should be Hot for 2011

Article Published in Stylist Magazine, February 2011


It’s hard to predict where the nail industry will trend. Years ago, who would have anticipated the incredible popularity of gel polish, or the total absurdity of fish pedicures? The fact that gel polish has become a trend, while fish pedicures have not, suggests that some changes are embraced and others rejected for a reason. When evaluating a new product, service, technique or business practice, I consider whether it advances my professionalism, provides a workable solution to an existing problem and serves as a safer, more efficient and cost-effective alternative to my present choices. These criteria help me make informed decisions for my own salon, but does not make me any more prescient. So rather than attempt to predict trends for the nail industry, here’s my wish list for 2011.

1. Despite the expedience and cost savings associated with using dirty files, tools and foot spas, nail professionals will take responsibility to follow the health and safety rules. Being “clean” will become the norm, rather than the anomaly it is currently. Voluntary compliance will protect consumers, increase our professionalism and reduce the need for enforcement. Our state boards have enough to do without the added burden of dealing with licensees who know better, but choose to act irresponsibly.
   
2. Consumer outreach will reinforce the value of our training and licensure, so that consumers will demand quality services from licensed professionals in licensed establishments only. Unlicensed activity will decrease and average service prices will increase when consumers no longer compromise their health and safety for low prices.
   
3. Beauty schools will fulfill their mission of education by hiring competent instructors, providing an adequate supply of professional products and preparing students for success beyond licensure. The significant number of hours spent in school will be utilized optimally to train students on current techniques and best practices, including proper sanitation. Students will have ample opportunity to perform services on real clients rather than on plastic practice hands.
   
4. In addition to teaching technical skills, beauty schools will teach students about the legal rights and responsibilities associated with being a salon owner, an employer, an employee and/or booth renter. Salon owners will compensate their employees legally or treat their booth renters as the independent businesses they are, whichever is applicable. More professionals will protect their business/financial interests with the appropriate insurance coverage (liability, property, workers’ compensation, etc.).
   
5. Beauty professionals (including unlicensed salon owners) will claim ALL their income and pay their taxes. Failing to do so demonstrates a blatant disregard for the law and disrespect for the beauty industry. Unfair competition undermines our professionalism and our industry can longer afford to be any part of the underground economy.
   
6. Nail professionals will eagerly participate in continuing education, whether it’s required or not. Given the inconsistent (and that’s being generous) quality of beauty school education, all post-licensure education could be considered remedial. But given the immediacy and accessibility of information, particularly via the internet, there’s no excuse for being uninformed. In addition to accessing industry sources, you’ll read consumer sources to be aware of (mis)information your clients will undoubtedly encounter. Your clients should never be telling you what’s new; that’s your job.
   
7. Participation in beauty shows and networking events will reach record numbers, much to the delight of event organizers, manufacturers and educators who invest hundreds of thousands of dollars in showcasing their products. While attending these events, beauty professionals will conduct themselves appropriately, including dressing the part.
   
8. Rather than sensationalize the negative, misrepresent the facts and scare consumers, the media will rely on beauty industry experts when presenting stories about professional nail care. If a story can’t be done without satisfying the journalism standards of accuracy, fairness, accountability, etc., it shouldn’t be done at all because we don’t need that kind of publicity.
   
9. The words “spa,” “natural,” “organic” and “green” will lose favor as consumers and beauty professionals will realize how overused and meaningless these words have become. Giving too much credence to these words may be hazardous to your credibility, if not your health.
   
10. Manufacturers will present their products with integrity, rather than mislead with buzzwords and marketing speak. As product consumers, we have the right to know what ingredients products contain and a responsibility to use them safely and effectively. We should know where the science ends and the marketing begins, and not cross that line with our own clients.
    
11. Manufacturers of professional products will renew their commitment to salon professionals, through education, research and inventory control. If the term “professional” means anything at all, it suggests that these products are of a higher quality and that professionals use these products in salons to achieve optimum results. If it’s only a marketing term to appeal to consumers, then it’s meaningless.

Most trends within the nail industry start in the salon, so start your own trend for 2011 by being the best nail professional you can be.

By Jaime Schrabeck, Ph.D.

Mastering the Basic Skills

Article Published in Stylist Magazine, January 2011


As beauty professionals, basic skills provide the foundation for our services; without these skills, it’s possible that our clients could do better, even as amateurs. Before I became a licensed manicurist, I did better work than the professionals I paid as a client, and that‘s not saying much. After hours of training and years of practice, it’s our mastery of basic skills that distinguish us from our clients and our competitors.

Regardless of the service being performed, our primary concerns should be safety, quality and consistency. At a minimum, it’s our professional responsibility to protect the health and safety of our clients. Consumer protection is the reason why most states require licensing, a beauty school education, a written and/or practical examination(s), compliance with regulations, and in some states, continuing education. Without expounding on the efficacy of these requirements, let’s agree that while the intent is admirable, in practice they do little to ensure consistent quality. The same can be said for the restaurant industry; a restaurant can have an immaculate kitchen and meet the highest standards for food safety, and the food can still taste awful. Likewise, safety is only one feature, albeit the most important, of a quality beauty service.

It’s not without irony that I consider the most basic thing we do as manicurists to have the greatest potential for harm. Filing seems so simple: pick up a file, hold it against the nail and start stroking. But which file? Paper, wood, mylar, metal, ceramic or glass? A standard 7 by 3/4 inch file, a block buffer, a custom-shaped file or a drill? How coarse or fine should it be? Disposable or disinfectable? Can you really disinfect it? How do you hold it? How do you hold the client’s finger? How much pressure to apply? How fast should you file? How do you avoid the skin surrounding the nail? How do you know when you’ve filed enough? I could continue, but my point being that choosing the right file for the task and knowing how to use it safely and efficiently is critical to our work. And a special note on drills: Using a drill can’t replace our hand-filing skills any more than using a food processor can replace a chef’s knife skills.

Nothing helps develop filing skills faster than working on your own nails. Manicurists should know how it feels to have a friction burn on their nail plate, or a cut to their skin. It’s painful! Careless or overly aggressive filing can lead to serious damage, including infections. Special care must be taken, whether filing on natural nails or removing enhancement product.

While in beauty school, we students are asked to identify different nail shapes, as if we don’t know the difference between round and square. What we don’t learn is how to file the desired shape symmetrically and consistently, from the client’s perspective. That’s why when filing the end of fingernails, it’s advisable to position the client with a bent elbow and the back of the hand and fingernails facing the manicurist. To save time, shape one nail first and ask the client to approve before proceeding to the remaining nails. The easiest shape to file is a square; as long as the file is positioned perpendicular to the nail at the end and parallel along the sidewalls, it should be straight. However, when the nail plate isn’t perfectly aligned with the finger, it’s the manicurist’s job to file in such a way to make it look as if it were. For more rounded shapes, it’s better to establish the length first at the end of the nail, and then shape the sides accordingly. Filing at an angle deep into the sidewalls will weaken the structure of the nail, and can make nails, enhanced ones in particular, look as if they’re ready to launch away from the nail bed. As for nail length, it shouldn’t be judged by looking at the underside of the nails because they’re rarely the same length naturally. To compare lengths, hold corresponding fingers side-by-side and view from the top surface. The overall length, measured from the base of the nail to its end, should be consistent between matching nails (pinkie to pinkie, etc.) and in proportion to each other.

And what about nail structure, particularly after applying enhancement products? It’s not enough to create a smooth surface. For strength, nail enhancements have to be structured properly with the apex (the highest point of the arch when viewed from the side) located near the stress area and enough c-curve (the curvature of the nail when viewed from its end) to help the nails resist breakage. For a more sleek and natural look, the product should gradually taper toward the base of the nails until flush to the nail plate and taper toward the ends to avoid thickness. Ideally, proper structure should be achieved through judicious and sparing use of product more than excessive filing. (Besides, the “pile and file” approach wastes time, labor, product and money.) Once the proper structure has been achieved, it’s fairly easy and very time efficient to produce a smooth surface by applying gel top coat. This eliminates the need to graduate file grits from coarse to super fine in order to obtain a scratch-free, shiny finish. Knowing how to buff enhancement products is critical for nail competitions, but completely impractical and time consuming in the salon.

To perfect your filing skills, I recommend consulting with nail competitors for file recommendations and procedures that will enable you to achieve great results efficiently and safely. Filing may be basic, but it’s far from simple.

By Jaime Schrabeck, Ph.D.