Start with your cost of service.
Pricing confidence starts with knowing your real costs. Include supplies, processing fees, and time. If you are not paying yourself yet, set a target hourly rate based on your goals.
- Supplies per service (product, disposables, tools).
- Processing fees (card fees, platform fees).
- Overhead (rent, utilities, insurance, software).
- Your desired hourly rate.
Simple pricing formula
Price = (time in hours x target hourly rate) + supply cost + overhead buffer.
Example: 1.5 hours x $60 + $8 supplies + $12 overhead = $110.
Use time-based pricing to stay profitable.
Time is your inventory. If a service takes longer than planned, your margin disappears. Build time buffers into pricing and avoid undercharging for complex work.
If clients request custom work, price based on time tiers rather than a huge list of micro add-ons.
- Create two time tiers: standard and extended.
- Offer a consultation for high-variance services.
- Track actual time for two weeks and adjust.
Use packages to increase value, not discounts.
Packages can help new clients commit and help you predict revenue. Keep the savings modest and tie it to a goal like consistent maintenance or a seasonal reset.
- Offer a 3-visit package with a small savings.
- Include a bonus add-on instead of lowering price.
- Set a clear expiration date to protect your schedule.
Raise prices with clarity and confidence.
Price increases are part of growth. Give notice, explain the reason in one sentence, and thank clients for their support. Most clients will stay if they trust your quality.
- Give 30 days notice for most services.
- Let current clients book one appointment at the old rate.
- Update your booking page and scripts on the same day.
Price increase script
Starting May 1, my pricing will update to reflect the time and products used to deliver consistent results. I appreciate your support and would love to keep you on the schedule.
Common pricing mistakes to avoid.
Most pricing issues come from underestimating time or copying competitors without context. Focus on your costs and the experience you deliver.
- Keeping too many service variants that confuse clients.
- Discounting without a clear end date.
- Not charging for add-on time or premium materials.