Episode 95
Pricing for Profit & Back Bar Budgeting
with Nina Tulio
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What we'll be talking about
In this episode, we’re talking about pricing and budget strategies and why you need to learn both to become a financially secure hairdresser
Knowing how to price salon services for profit is more of a dream than reality for many hairdressers, but it does not have to be that way. Many Hairdressers and Salon Owners are muddling their way through pricing without clear strategies & back bar budgets designed to help their business be profitable.
If you are listening to this in real time we are fast approaching the end of the financial year & that can be a nerve wracking time when you start crunching numbers. Because simply the amount of revenue does not equal profit. There are many factors that contribute to running a profitable business, including back bar budgeting, financial forecasting, charging for colour used and not over ordering professional stock to name just a few.
Show notes for podcast episode 95
LET’S MEET OUR GUEST – nina tulio
I am talking with Nina Tulio, a former stylist and salon owner turned international business coach, motivational speaker and The Business Education Ambassador for Oligo Professionnel. In addition to these roles, she is also a columnist and Ambassador for Schedulicty , a columnist for SalonEVO Magazine which is based in the UK. And a part of the Editorial Advisory Board for Beauty Launchpad Magazine.
First and foremost, Nina is a salon coach and mentor for salon owners, stylists, suite owners and renters. I love Nina’s Instagram and tiktok dance videos that make business education entertaining and fun. I am super excited to be talking with her in this podcast.
Bad combination: Under charging & over spending
Is this you?
Do you feel like you’re not chagrin enough which is either causing you to worry or work way more than you have to.
If you are operating at the same prices as 2-3 years ago you are slimming your profits – you’ll end up working way harder and working more than 40+ hours a week and more clients than is sustainable for you and your business. Hair colour services are more dimensional and require more product. Styling and cutting services are more customised and cannot be rushed. We must stop emotional discounting and charging prices that were better suited to our industry a few years ago.
Check out our budgeting pro tips below and connect with Nina Tulio to learn more about pricing for profitable services.
Nina’s PRO TIPS FOR Back Bar Budgeting:
- If you are a Suite Operator, Chair Renter or Freelancer your budget is 15% to spend in comparison to your revenue. That is your benchmark and that is your budget. You must be strategic to having an ordering system.
- Suite Operators, Chair Renters and Freelancer target profit is 50%. You need to run your profit and loss every month to look at overspending.
- If you are a Comission Salon Owner 6% (or your revenue) is your back bar budget. This particular category is where we spend the most, and it’s different to suite operators due to different operating costs, such asutilities, payroll, profit margin, rent etc.
- If you are a Comission Salon Owner your target profit is 20%
Listen to learn more in Episode 95 of the Colour Kristina Talks podcast to find out about pricing for profit and back bar budgeting.
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