Business Basics: Professionalism

The contrast between my life in the beauty industry and my life in the business sector is astounding. I used to work in a Human Resources support role for a Fortune 500 company in their Organizational Development department. In that role, I was exposed to training and expectations for their high level executives. The expectations for business professionals is vastly different from how the majority of beauty professionals act nowadays - and its not that beauty professionals have a less important job by any means, its that business and the importance of professionalism isn't even touched  in the beauty industry unless you take a rare advanced training beauty business class.

Look, I get it. This is a creative industry. You did not go to school for business because its too stodgy/ boring/{insert adjective here}. Except you DID go into business - the beauty business.   

Professionalism

Professionalism is a set of character strengths and values directed toward high quality service to others through one's work. It encompasses the skills, knowledge and behavior that you use at work and that you present to the outside world as a beauty professional, even if not at work . Let me repeat that - even if not at work.   If you are representing the company in any capacity - even just talking about where you work to an acquaintance -  your behavior will be judged in relation to your job.

Professionalism isn't how you look, it's how you behave.  It's saying what you mean, doing what you say, and getting the job done.  People who act professionally are regarded better by both peers and clients, make more money and are seen as experts in their chosen field.   People who act professionally are valued by their company. Professionalism establishes boundaries to clients. It promotes respect and minimizes conflicts.

Of course, how you look still matters. Being neat and clean is important in order to look professional. What would you think if you went to a doctor who was wearing a sloppy, stained sweatsuit and had matted, messy hair? Your opinion of their professionalism - and probably their competency - would go down and you might even be uncomfortable seeing them.

Characteristic of Professionals - in ANY Industry

• Neat in appearance - while professionalism is a set of behaviors, appearance still matters, ESPECIALLY in the beauty industry.
• Polite and well-spoken but not cocky
• Reliable
• Competent in their role and always striving to become experts in their field
• Ethical
• Organized
• Accountable for their actions - they admit their admit mistakes and correct them and don't try to blame others
• Maintain poise - they keep their calm in difficult situations
• Respectful of others - customers, superiors and co-workers alike

Professionalism is important, even if you do not work for a Fortune 500 company. By maintaining professionalism, you will go further in your career, make more money and be regarded as an expert in your field.  Its a win-win situation!

Unprofessional Behavior

Unprofessional behavior happens, but a true professional will strive to not let it happen and to minimize issues when it dies happen (to them or someone else in their place of employment.

Unprofessional behavior can include:

I love this picture! from LinkedIn

• Being late or skipping work.
• Discussing taboo topics or your personal life
• Swearing
• Being defensive
• Being unresponsive
• Being disrespectful
• Not keeping promises
• Blaming other people
• Being fake
• Lying and stealing
• Poor communication
• Arguing in front of clients
• Insults, verbal comments, or criticism intended to belittle or berate others
• Verbal outbursts
• Conduct that can be considered harassment or discrimination
• Verbal or physical threats of violence, retribution, or lawsuits
• Any of these examples

I highly encourage you to keep reading and researching on the subject of Professionalism and even take a class if you can. It is an extremely important piece of making a viable career that is not talked about often enough in this industry.



Resources and References
https://www.strategies.com/blog/career-professionalism-success-beauty-industry/
http://beautysupply.about.com/od/Marketing/tp/Keeping-It-Professional-In-The-Beauty-Industry.htm
http://www.modernsalon.com/article/7511/9-essential-work-ethics-for-salon-success
http://brainwashedu.com/raising-the-professionalism-of-the-beauty-industry/
https://www.linkedin.com/pulse/10-characteristics-professionalism-greg
https://www.usatoday.com/story/money/business/2014/08/02/unprofessional-workplace-behaviors/13420381/
https://www.linkedin.com/pulse/20140706111652-12357314-top-10-most-common-unprofessional-behaviors
https://www.slideshare.net/tammyjwatson1969/professionalism-in-the-workplace-37460714
https://www.slideshare.net/wicaksana/professionalism-in-the-work-place
http://www.rasmussen.edu/student-life/blogs/main/four-reasons-why-you-need-to-be-professional/
http://smallbusiness.chron.com/importance-professionalism-business-2905.html

Business Basics: Communicating with Clients

This is your new mantra: Clients are not your friends.  They pay you to do a service.  You are a professional.

Acting professionally isn't just about how you carry yourself while at work, nowadays with social media, it is also about how you carry yourself in your online presence.

Social Media

Clients are not your friends.  They pay you to do a service.  You are a professional.

Social media: noun; websites and applications that enable users to create and share content or participate in social networking. See: Instagram, Facebook, YouTube, Tumbler, Snap Chat, Periscope, Twitter, Pinterest, Reddit, LinkedIn, blogs, et cetera, et cetera.

Social media has made it so easy for an average Nail Tech (or any one else) to market themselves quickly, cheaply and effectively.  For a small business, or even an average technician looking for clients, social media is an amazing invention that allows free, instant self promotion. However, it is that "instant" piece that gets people into trouble. Always think before you post! I have seen nail techs post the most unprofessional things on their business pages. From one person who literally posted that they were looking for a surrogate to have a baby, to another who posted a meme that was taken as anti-religious and who lost a lot of religious followers due to that single post. And many, many more who post negative things about other businesses, people, their baby daddy...it goes on and on. Your personal life and professional life should NEVER be intermixed in your social media.

Spelling and Grammar Count!

A professional social media page needs to be proofread. Misspellings and poor grammar bring down your professional image and credibility.  I know typos happen to the best of us - but if you do not know the difference between your and you're or too, two and to, look it up before you post something. It may sound trivial, but it absolutely brings down the image of you as a tech, the image of the industry as a whole and perpetuates the "nail techs are just dumb people who can't hack a real job" myth.  Poor grammar and spelling comes across as unprofessional and gives the impression that you don't take your role seriously.  In the business world, you will never see an advertisement with misspellings or poor grammar because that would present a very poor image of the business.

Similarly, proper punctuation and capitalization show professionalism just as much as proper grammar and spelling.

Social Media is Advertising

As I said above, in the business world, you will never see an advertisement with misspellings or poor grammar because that would present a very poor image of the business.  Social media is your advertising platform, treat it as such. There is an entire profession of people who do nothing but craft advertisements and marketing campaigns. If you are going to compete with corporate salons who use professional marketers and advertisers, you need to act professionally on your business social media pages. Period.

Text Messages

Clients are not your friends.  They pay you to do a service.  You are a professional.
No one is saying you can't text your clients - in this day and age more and more clients prefer to text over calling for an appointment. The main thing is that you set boundaries with your clients.

If your lawyer or doctor or dentist texted you at 11 pm "smh. I SAID I would get you in on sat. you hv to lmk when"  What would you think?  Not very professional, right? Personally I would find a new lawyer/doctor/dentist if that happened.

Ideally you would have a separate phone number for work, but if for some reason you cannot do this, you will need to learn to manage your work texts.

1. There are many services that you can set up to take online and make text appointment reminders.  Yes they have a service fee but it may be worth it to you to save your sanity. Acuity Scheduling is one and is only $10 a month  and Appointment Tell is a service that reminds clients via text, email or phone message and may also be helpful if you don't need a full scheduling software ( I am not affiliated with them, nor have used them, just pointing out these services exist).
2. Use Google Voice - you can get a second phone number that forwards to your cell/home/work phone and you can dictate hours in which to receive calls and texts.  Use that phone number for clients.
3. Make it very clear on your business cards/websites/social media that clients can text your phone during business hours only (of course there will always be clients who don't read or care about what you put out there...)

In Your Chair

Clients are not your friends.  They pay you to do a service.  You are a professional.
Having said that, yes you will sometimes have actual friends in your chair.  And some regular clients become very close with you after years of seeing you.  But in your chair, they are clients.  They are paying you to do a service.  You need to wear your "professional" hat and put the "friend" hat away for later. Yes, you can be friendly but keep in mind that topics of conversation in any workplace should not start a debate or invoke strong emotions.  Politics, religion, your health, your finances, risque jokes, sex and sexuality, problems in your relationships, gossiping about coworkers...all of these are majorly "off limits".  I realize it is hard when the person sitting across from you has know you since grade school, but remember this is your career, not your living room, and if you work in a salon or spa with other people anyone could overhear you.  Keep it neutral.

By keeping your place of work professional, clients will respect you.  Once you start becoming too informal, they start to think you are friends and should give them discounts.


Say it with me now: Clients are not your friends.  They pay you to do a service.  You are a professional.

You can do this!


References and Resources:
http://www.nailsmag.com/article/96401/texting-over-a-landline
http://www.fiercehealthit.com/story/maintaining-professionalism-social-media-heres-how/2013-04-12
http://www.thegrindstone.com/2011/06/27/career-management/office-etiquette-inappropriate-workplace-topics-you-should-avoid/
https://gigaom.com/2010/10/08/professionalism-and-social-media/
http://www.mw-creative.co.uk/social-media-tips-beauty-industry-2014/
http://salonnerds.com/social-media-marketing-importance-hair-salons/
http://thehairartistassociation.org/2013/05/5-common-social-media-mistakes-beauty-salons-make-and-how-to-avoid-them/

Business Basics: Resumes

Resumes (or curriculum vitae if you do not live in the US) are one of those things that the average beauty industry person has no idea about, even though having a good resume is a critical element in the job seelking process.  When I applied for my first nail job, I went to apply thinking I would just fill out an application and that would be that.  When they asked for my resume, I gave them a blank look - this was not something that was even mentioned in nail school!

A resume/curriculum vitae is defined as "a brief account of a person's education, qualifications, and previous experience, typically sent with a job application."  It is a summary of your relevant work/educational experience.  This means, you do not need to list every single job you have ever had, nor every subject you studied in school. 

You will want to tailor your resume to the position you are applying for - and yes this means that you should look at and refine your resume for every job you apply for!  You may not need to make any adjustments if the positions are all very similar, but you may need to tweak a word or two or even a whole section.

For instance, if you are looking to apply at a spa that only does natural nail manicures, you will not want your objective to read "A highly talented nail technician with experience in providing professional, high quality acrylic nails." The fact that you do acrylic nails means nothing to a natural nails-only spa.  It is neither relevant nor tailored to the application.

Being relevent doesnt just mean salon work.  When you are first starting out, you most likely will not have worked in a salon.  Under the Experience section of your resume you can put previous jobs that focus on your relevant transferable skills.   A salon owner isn’t just looking for someone who can do great nails.  They also want someone who is reliable, is professional with the clients and who is a team player.  Showing that you worked as a sales associate for three years, doesn’t speak to your nails skills, but it shows you are a loyal and dependable employee – which is equally as important.

Students should include statistics from their work at the school salon including includes how many clients they serviced in a week, the average service ticket, the number of referrals, the percent of re-books, the average retail ticket, and weekly service and retail goals. The resume should also include experiences outside the classroom, from volunteering at school fundraisers to doing a beauty photo shoot after hours.


Parts of a Resume
Resumes have four basic parts - your contact information, the objective, your education and your experience.  In addition you can add sections highlighting relevent skills or other relevant information.

• Contact Information: This is self explanatory - name, address and phone number plus email address. If you have an online resume, include that website address as well.


• Objective. This is an optional piece - more and more people are saying to leave it off but if you choose to keep it in, this is where you tell the employer exactly what you are looking for in a place of employment.  Mention the kind of environment and position you are seeking. State your objective simply and concisely; it is never necessary to have a long-winded statement.


• Education. List it all: where and when you went to school and any continuing education classes or seminars you have attended.


• Experience. List prior work experience beginning with your present position and working backwards. List all products you have worked with. This will give you an advantage over the other applicants who have no experience with certain products.  Your experience does not have to be paid to be relevant. This allows you to include any experience in which you learned or demonstrated skills, knowledge or abilities that are related to the type of job you are seeking.

You can add additional sections as desired. Some examples are:

• Activities/ Awards: To help make yourself stand out, be sure to add anything that shows your passion for the industry - such as memberships to industry associations and awards or competitions participated in.
• Other Experience/Volunteer Work: If you have a lot of experience you can choose to separate your experience into difference sections and list related volunteer work
• Skills: Most resumes can benefit from having a skills section. The heading might simply read "Skills," and include a list of various skills. Since skills are a large part of the beauty insutry and are more related to your objective than some other sections, place this section higher on your resume page than other less-related sections.
• Certifications/Licensure: You can include you licensure in your education if it was obtained due to training, but you may also wish to highlight it as a separate section, especially if you have certifications from manufacturers - such as being a CND Master Tech.

References
On a resume, it is unnecessary to state "references available upon request." Most employers assume this. Do, however, prepare a reference list, on a separate page from your resume.

On curriculum vitae, references ARE typically listed.

In selecting people to ask to serve as references for you, think about what those individuals know about you and if they can discuss your work-related qualities. Don't list references who only know you in a social capacity. While family friends may have nice things to say about you, employers don't place value on these kinds of references.  Also, don't ever give someone's name as a reference without that person's permission.


Dos and Don’ts of a Successful Resume
• Don’t use overly cute or ornate fonts. Make it as easy as possible for the interviewer to get the information she needs without having to try to decipher what the words are.
• Don’t use a lot of icons or design elements that will be distracting to the interviewer. You want her to see the information in your resume, not the art.
• Don’t go for bright neon paper. Although you want your resume to stand out in a stack, the interviewer may have difficulty reading that beautiful yellow color that you so love.
• Do be creative — but opt for a classic style over glitz and glamour.
• Do use spell-check. And have someone proofread it for you as well.  I can not stress this enough!  Proofread, have your mom proofread, have your teacher proofread, have a friend proofread and then proofread it again!  Check not only for spelling mistakes, but mistakes in the "voice" of the resume.  It should all sound cohesive.

Seeing how others structure their resume may bring you some ideas - go ahead and Google "Nail Techncician Resume Examples" and you will get many ideas on how to structure a resume.  You can also look for cosmetologist, hair stylist, esthitician, manicurist, and beauty industry resume examples to get additional ideas on structuring a resume, even if you don't do hair or skin care for a living.


References/Resources
http://www.career.vt.edu/resumeguide/ContentSections.html
http://www.career.vt.edu/JobSearchGuide/ReferenceGuide.html
http://www.nailpro.com/sample-resume/
http://files.nailsmag.com/Handouts/naCH11resume.pdf
http://www.beautyschoolsdirectory.com/blog/beauty-careers/how-to-write-a-cosmetology-resume/
http://www.nailsmag.com/article/96938/help-students-create-impressive-resumes-fresh-out-of-school
http://www.nsinails.com/nail-labs/tricks-of-the-trade/prepping-for-an-interview.html#.VnAsgXJglaQ

Business Basics: Limited versus Full Service Offerings

Ther are two main ways of looking at your service offerings in a salon. You can do everything under the sun (that you can do under your licensure) or you can limit your services.  There are pros and cons to each.

The Full Service Menu - Pros
A "Full" Service menu generally means that you offer every type of service you are legally allowed to perform.  This can be great for clients who will be able to  pick and choose the services they want.  Also, because not all salons offer all services, you are ensured that clients will seek you out for the lates and greatest services they see on the internet (assuming you are marketing your full service menu!).

"We get all kinds of requests from clients who can’t get certain services when they visit discount salons, so our motto is, 'We do everything!'" — Vicki Peters


The Full Service Menu - Cons
On the flip side, too big of a menu can cause clients to be confused by too many choices and services. Most clients do not understand the jargon of the nail industry so if you are listing five types of acrylic nails on your menu, it is very likely a client would get overwhelmed and you can potentially lose clients who don't know what to ask for. In addition if you bill your salon as full service, trends, internet buzz, and Pinterest postings could have you scurrying to add new services to keep up with the demands of client.  Also, offering a varied menu of services means keeping product for all of those services in stock, even if you only actually perform the service once in awhile.  By not performing some services oftern, you may be slower and even forget certain steps in the service.


The Limited Service Menu - Pros
By offering a limited menu, you can specialize in specific services and bill yourself as a specialist - clients often perceive specialists as "better" at their job.  With fewer options, clients do not tend to become overwhelmed or confused regarding services and the tech does not ahve to stock as many products.  You can build a core clientel that come to you for your expertise and you will always be on top of your game.

"I fully believe in being specialized and keeping the options simple while giving the complete service." — Suzanne Cox, Salon at the Highland, Cedar Park, Texas


The Limited Service Menu - Cons
You will not be able to accomodate clients who are looking for the latest and greatest thing they saw on the internet.  If your long-time client decides they want a pedicure but you only offer gel nails, you will not be able to accomodate them. Of course, in an ideal world you would have a referral relationship with another tech who specializes in pedicures.


No matter what you choose, it is important to keep the pros and cons in mind when designing and choosing which services you will perform. 

How many services do you offer?



References/Resources
http://www.nailsmag.com/article/98023/crowdsourcing-specialties-vs-a-wide-ranging-menu
http://www.nailsmag.com/article/107890/is-it-time-to-tweak-your-service-menu

Business Basics: Inflation, Cost of Living Index, and more fun stuff.

It is important to understand that what you charge for nails will be unique to YOU.  We already talked about pricing services and figuring out your own prices, but lets be honest, not everyone in the beauty industry is interested in the hard business skills - how many of you actually have sat down and done the math??  Yep, thought so. Well, I hate to tell you but there is more math in this article :)

Once you have been in the business for awhile, you will find that you will need to raise your prices. Yes, you will.  If you are not raising your prices each year or two, you are effectively taking a pay cut because of inflation. And if you move to a new city your prices need to be adjusted because of the local consumer price index (a.k.a. cost of living index)

When I started doing nails 15+ years ago in Midwest small-town USA, I charged $45 for a full set (of which I made 50% commission - about $15 per hour with an hour and a half full set).  After 15 years of inflation that price should be $62.28 minimum - and actually it should be more because my skills and training would have increased my prices.  (Try this nifty inflation calculator).

Now, taking the fact that if I was still in Midwest Small Town USA I should be charging $62.28 and the fact that I now live in Midwest Big City USA, which has a higher consumer price index, I should be charging a minimum of $69.83 for my full set just to equal the $45 I charged when I was starting out.

If you want to figure this out yourself:
Take the base price ($45)
Use the inflation calculator to get your current price ($62.28)
If you have moved to a new location or are just curious about what people should charge in other parts of the US to get the same buying power as what you charge, you would take the cost of living index (COLI) of your new location, divide by the COLI of your old location and then multiply that by your service price.
111/99 = 112.1
112.1*$62.28 = $79.83

If I was in Manhattan (New York City), I would have to charge $138.21 just to equal the buying power of $62.28 in Midwest small town USA.  Pretty mind boggling when you think about it!




References:
http://www.bls.gov/cpi/
http://www.usinflationcalculator.com/
http://www.bls.gov/data/inflation_calculator.htm
http://money.cnn.com/calculator/pf/cost-of-living/index.html
https://www.coli.org/

Business Basics: Lowering Prices

So you have decided that you want to adopt a low-end competitive pricing strategy, remember that your profit margin per sale is going to be less so you’ll need to focus on reducing your costs.

The Iowa SBDC recommends several best practices for this approach:

• Obtain the best prices possible for products
• Locate the business in an inexpensive location
• Closely control inventory
• Limit retail to fast-moving items
• Design advertising to concentrate on "price specials"
• Offer limited services

Lets take a look at these individually.

 

Obtain the Best Prices Possible for Products

Buy in bulk and stock up during sales.  Find less expensive substitute products - every penny counts when you have a slim profit margin (this is a huge reason so many discount salons turn to MMA! Don't be tempted... there are plenty of inexpensive EMA brands out there). 

 

Locate the business in an inexpensive location

You will need to assess your location and determine if moving your business to a cheaper location is worth it - will it be too out-if-the-way for a lot of walk in clientel?  Is it in too seedy of a location that your regular clients won't like to drive there?  There is a difference between inexpensive and cheap - do your research and figure out where your business might thrive. 

 

Closely control inventory

This one is a bit harder, but determining how much liquid and powder should be used per service and making sure to charge for longer nails that take more product will be very important.  Using only one paper towel and 2 cotton pads per service WILL make a difference.  Remember, every cent counts.

 

Limit retail to fast-moving items

Retail can bring in a lot of money, but don't stock items that will languish on your shelves for months - you will not want to have your cash tied up in retail that is not moving.

 

Design advertising to concentrate on "price specials"

This is a given.  Since your target market will be clients who are looking for the best price, you will need to make sure to entice them.  That also means your services should be priced with a profit margin that allows setting sale prices and still making a profit.  This is why it is so important to know your numbers!

 

Offer limited services

The more services you offer, the more of your money will be tied up in stock.  If your clients never get gel nails, don't offer them - otherwise you will have a lot of money in product and equipment sitting in your desk not being used. Have a limited basic service list so you can have limited stock. 

 

 

 

Negative Aspects of Low Pricing

Remember: cutting prices can have a number of consequences. The SBA (Small Business Association) points out:

• It lowers the perceived value of your brand and product –even the big brands are guilty of this and the effect over time is detrimental. Like everyone else, many mall-based clothing chains are struggling to hang on to their market share in this tough economy, and are literally handing out online coupon codes and deep discount sales on a weekly basis. This in turn leads the customer to know and expect price cuts, and, of course, any informed buyer is going to hold out for the next sale rather than pay full price for a product they have come to see as over-priced.
• Once you cut prices it’s hard to put them up again – anyone who has ever bartered or sold anything can tell you that once you take that price down it’s very hard to justify adjusting those prices up again.
• It attracts customers who only care about price points – a business’s unique value very rarely hinges on price; it’s usually a combination of price, product, reputation, and value that it brings to the market it serves. By changing your market strategy to focus on cutting prices you are essentially undermining all the good work you’ve done to build your brand, and there’s no going back – you’ll find yourself having to cut prices on every service you offer.
• It’s a war you can’t win – cutting prices across the board is never a good idea because when you cut, the competition cuts, until the business willing to tolerate the lowest margins prevails and it’s usually the lower quality competitor. There are no winners here.

Focus on Value Instead
With all this talk about price it’s easily forgotten that most small businesses build their brand and their success on the value they deliver. Value is so much more than price, it embodies the product, your team, your leadership, and customer service – and it can help differentiate you in a crowded and competitive market.

Selling on this value instead of price will consistently differentiate you for the long term despite the temptation to fall into a price war with the competition.

How do you do this? Know your target market, your competition, your product and your advantage.
Remember price is a reflection of your value.



Resources and References
https://www.sba.gov/blogs/how-avoid-falling-price-war-focusing-value
http://www.nailsmag.com/article/90938/the-pricing-problem
https://www.iowasbdc.org/Portals/0/ClientDocuments/How-to-Price-Your-Products-and-Services.pdf

Business Basics: Setting Yourself Apart

TIP # 35 SETTING YOURSELF APART 

by Vicki Peters  circa 2001

Setting yourself apart from your competition takes time and effort and can't be done overnight. It is a collection of good business basics, knowledge and  experience and most of all good customer service skills. It takes experience, professionalism and wisdom to see what your competition is NOT doing. It  also takes the right salon environment. If you're working in a salon that does not share your professional ethics then you should find one that does.  If the rest of the salon does not answer the phone with the utmost care, if  you're working with techs that don't have high enough standards then you  should reconsider where you're working. And for those who think lowering your prices to compete with those discount salons up the street is taking the WRONG approach. It is, just the opposite, believe me. Here are some ideas  for you.

Professionalism
Salon appearance - does the salon look the way you want it to look? What is  the client's first impression and is there anything that you can improve on?  What is the decor and does it need updating?

Your appearance - Are you a jeans and T-shirt kind of manicurist? Will smocks  help the appearance of the techs because it is difficult controlling what  everyone wears? Do you apply makeup every day and do your hair so you feel  good about the way you look? Are your nails done? There is no excuse here.  Get a standing with a tech at another salon if you don't have time and get  your nails done. Top coat them with gel so they are resistant to acetone. We  are our best form of advertisement and if your nails don't look good then how  can you sell your services? And there is nothing wrong with natural nails -  buff them so they look neat and clean all the time. Take a look at the  things and containers on your table - it is time for a table makeover? When  was the last time you scrubbed your station down and removed all the polish  and yuck from the top of the table? How about a new lamp? Is your table set  up simple or do you have a cluttered table with personal things that looks  like an extension of your bedroom?

Table Manners - This is also important from the client's perspective. How do  you handle interruptions and phone calls while you're servicing a client? Do  you gossip within the salon? Do you have salon menus available for the new client? Do you do nail consultations for the first time client? Do you offer  alternatives to acrylic work? How to you greet the client and how do you end  the appointment? Do you meet her at the front door and walk her back to the  waiting area every time?

Do you explain your technical procedures and why you prefer the products you  prefer? Do you explain how you sanitize your implements? Do you share with  your clients the extra education you take all year long to improve your  knowledge? If not they won't know.

Trends

You need to be up on all the latest trends. Watch the consumer  magazines and be on top of all the new polish colors as soon as they are  available. Watch consumer nail shapes as well.

Referrals & Networking

take advantage of the clients that sit in your chair  before you go spend too much money on advertising. Your clients can advertise  for you. Tell them you are looking for new clients and arm them with several of your business card. Write their name of the back of the card so when the  new client comes in from a referral you so will know who it is. Reward that
client with an extra 10 minutes of a massage or something special that does  not cost money and they will remember. Discounting a service is not  memorable. Most of your clients probably believe you're booked and don't need  more clients - if you don't tell them they won't know.

Retail 

If you're not retailing you're missing the boat. The client wants your professional opinion on a top coat they do not want to go to the store and  buy something blindly they would prefer your recommendation because you know.  So why not sell them retail? Our recommendations can be powerful. They are  always looking for good hand lotion, exfoliant and cuticle products. You can
make so much more money by retailing and not having to work longer for it.

Career Enhancement 

If you're not attending several trade shows and classes a  year YOU ARE OUT OF THE LOOP. Don't you ever think for one minute you know  enough because you don't and your business will eventually suffer. Even if  you're fully booked now, that will not last. You have to maintain your career  with fresh information, constantly. Go to every product class you can, even
if you don't use or like the product. The educator may have one little tip she passes on that will make it worth your while going to the class. Also you need to  continually try new products, you never know - you just might find something  you like better and if you don't it will just confirm you're using the right  product.

Network at the shows - get online and find out who is going to what show and  meet up. Help with a competition (maybe mine?) so you get the chance to stand  over the shoulder of someone like Tom Holcomb as he competes. Watch the  judging, hang with the competitors. Share hotel expenses with other techs you  meet and network. Share ideas and attend classes and discuss with others what
you learned at the classes. There are hidden values to attending a show that  if you don't dig deeper you may miss. Spend ample time watching all the demos  you can. Never know what you can learn.

Goal Setting 

This is important to do in order to grow your career. Goals  can be getting your time down, learning new techniques so you can charge more  or training others. Setting goals on how much money you want to make each  year and how you're going to do that.

Customer Service 

I can't say enough about this. Customer service and  sanitation for that matter are two of the most important factors in securing  a loyal client, the nails you do actually plays a much smaller part in it all. If you don't take pride in how you take care of the client she will not think the service was good no matter how good the nails are.

So let's start with developing a phone dialog and customer service standards with in the salon. Answer the phone by the third ring. Take turns on answering the phone if that is what it takes when you don't have a receptionist. A consistent phone dialog should be written that every one uses. When you have to put someone on hold do so nicely don't just click. And please don't yell across the room if the phone is for some one else especially if the client is not on hold and can hear you. Keep track of everyone's schedule so when a client calls in for someone that is not there you know when she will be or take a written message and place it on the manicurist's desk. Not knowing is not good enough, the client called for a reason and she needs an answer. If you have voice mail use it and ask if the client if she would like to leave a message in so and so's voice mail if they are not there.

Develop a standard on how to greet a new client that may be a walk in. Don't let her stand there and wait for some to greet her.. Put your friendliest tech closest to the front door for that reason. And even if you're all independent contractors you should be working as a team. The client does not care if it is not your job; she just wants to be taken care of. Bottom line.

Customer service is easy and the best way to gain loyalty. Training on customer service is something to consider, there are many seminars you can take, Career Track is one of them and they are very good. I have taken several myself and there are plenty of books on the subject as well. Look outside the beauty industry for customer service help. Watch the way you are taken care of when you venture out to other salons, stores and restaurants. Give the client the impression that no matter what your salon can accommodate
her.

Setting yourself apart from the other salons is easy as I said but will take a collection of service skills to rise above the discount salon mentality. And remember there will always be "Ford" customers out there but you want the " Cadillac" customer, and in order to attract a clientele like that you have to be a "Cadillac" tech. So, are you?

DISCLAIMER
Any products mentioned in the "Tip Of The Week by Vicki Peters" is not an endorsement of any kind.

Business Basics: Pricing Services - Doing the Math

When determining your prices, you don't want to price yourself out of the market, but at the same time you want to cover overhead expenses and generate a profit. Therefore, in pricing your services you must consider these two factors: what the market will bear and your profit margins.

First things first, let's determine our target market.

Target Market
You cannot determine your prices if you do not know you you are servicing. Your target market is not something I can tell you , you will need to think about it in relation to your own area.
There are four main pieces to your target market:

• Region (Determining the types of jobs that people in the salon's region hold may give you a clue as to the prices you can charge and the services you should offer)
• Gender (do you cater to men or women exclusively? Or both?)
• Style (are your clients on the cutting edge offashion or more conservative? Are they young mothers who want natural looking nails or are they teenagers who just want to look "cool"?)
• Socioeconomic Status (Pricing is going to be very different if you service affluent young professionals in a large city versus people in an economically challenged rural area)

Of course not everyone in your area will get their nails done here are some questions to ask yourself to help narrow down your potential market:

• Who has the need for my products or services, the financial ability to purchase my services, and the ability to find my services?
• How many of these people or businesses exist in my general area today?
• How much money does each person or business currently spend every year solving the problem that my service also solves?
• Who else do I share this market with? (how many other nail salons are in my general vicinity?)

Service Pricing Categories
“Within our industry there are three categories with which you can choose to align yourself: budget/economy, intermediate/midsection, and luxury/top end,” says salon consultant Maxim Titter. There is no right or wrong category, she emphasizes, only the danger of not knowing which category you belong to.

Each category varies, once again, with your location - in my area anything under $40 for a full set is a budget salon but in other areas the mid-range price is $25 and $40 is getting expensive. What your online friend charges has nothing to do with how much you should charge(unless you work across the street from each other).

Your Service Offerings
Next, you want to figure out what prices your market will bear - ask yourself this question: Is my service unique? Now, yes, there are a million places offering acrylic nails, but your service can be unique in that you guarantee your work and offer free hand massages and basic nail art. If your service is unique--meaning there's little in the way of direct and indirect competition--then you're a market leader and you have more leeway in setting the prices.

If you are a market follower--meaning your service is not necessarily unique and you're not the only outlet--then setting prices is easy. Your prices simply can't be higher than that of your closest competitor. The question you should then ask is this: Should I be offering this service? (or should I make my services more unique) The answer lies in your profit margin for this product.


Profit Margins
All right, get our your calculators and spreadsheets. We are going to crunch some numbers!

Keep this in mind: The purpose of business is to make a profit. Every service you offer must must cover your fixed costs and generate a profit--otherwise, you're just trading dollars.

One more thing, I am looking at these number as an independent tech. If you are paying employees your costs would include their salary and employer taxes, which would make them much higher.

Terminology:

• Fixed costs:costs that do not fluctuate with sales volume such as rent, utilities, depreciation, licensing, insurance, advertising, laundry, maintenance, postage, bank service charges, computer programs related to your business and so on.
• Depreciation:loss of value over time and with use - you likely use a range of equipment that has a limited lifetime (brushes, electric files, tables, lamps, chairs, etc.) and the decrease in value of these items should be considered an expense. You should figure out depreciable items and their life expectancy and work in the monthly cost of these items into your fixed costs. For tax purposes, the IRS considers items subject to depreciation to be "fixtures" (like table and chairs) but for our purposes anything that we need to buy periodically (brushes and UV bulbs) will go in this category.
• Direct Costs: Costs that are directly associated with the service being sold such as product cost.

Step 1: Make a list of all of your fixed costs, not including depreciable items. For items you pay annually, take the annual amount and divide by 12 to get the monthly cost.

Fixed Costs:	Monthly
Rent	$500.00
Utilities	$60.00
Insurance	$8.25
Licensing	$2.92
Advertising	$16.67

Total Monthly Cost: $664.71

Step 2: Make a list of all of your depreciable items and their cost and life expectancy. Here is a good list of examples on depreciable items and their life expediencies. Here is another good reference. Obviously things like acrylic brushes are not on the list so with that you just figure how often you buy that item. Take the cost and divide by the life expectancy to get the annual cost. Then take the annual cost and divide by 12 to get the monthly cost.

Depreciable Items	Cost	Life Expectancy (years)	Annual Cost	Monthly Cost
Manicure table	279.00	7.00	39.86	3.32
Tech Chair	99.00	7.00	14.14	1.18
Client chair	99.00	7.00	14.14	1.18
Pedicure station	2,395.00	7.00	342.14	28.51
Electric file	350.00	5.00	70.00	5.83
Bits	150.00	1.00	150.00	12.50
UV lamp	150.00	5.00	30.00	2.50
UV bulbs	45.00	0.25	180.00	15.00
Desk lamp	79.00	7.00	11.29	0.94
Acrylic brush	28.00	0.50	56.00	4.67
Gel brush	15.00	1.00	15.00	1.25

Total monthly cost: $76.88

Step 3: Make a list of all of your direct costs (product cost per service)

This step can be a bit harder since cost could vary. Many manufacturers have broken this out for you. For my example I am using the CND product cost per service chart. Remember, buying larger sizes will lower the cost per service and increase the profit margin

	Product/ Service	Other Costs/ Service*
Acrylic Full Set/Fill	1.87	3.00
Gel Full Set/Fill	3.28	3.00
Shellac Manicure	3.21	3.00
Spa Manicure	2.56	3.00
Spa Pedicure	2.89	3.00

*other costs include disposables like files, cotton, toe separators, etc. I just used the same number for all services here but you should figure out your specifics.


Next determine how many of each service you perform each month

Service	Average # Per Month
Acrylic Full Set/Fill	25
Gel Full Set/Fill	30
Shellac Manicure	20
Spa Manicure	15
Spa Pedicure	25

Total Services per Month (average): 115

Take the total number of services (115) and divide your fixed costs and depreciable costs by that number

Fixed costs per month: $664.71/115 = $5.11 per service
Depreciable costs per month: $76.88/115 = $0.67 per service

For a total of $5.78 - Now add those costs to your product costs

Service	Product/ Service	Other Costs/ Service*	Fixed Costs/ Service	Total Cost Per Service
Acrylic Full Set/Fill	$ 1.87	$ 3.00	$ 5.78	$ 10.65
Gel Full Set/Fill	$ 3.28	$ 3.00	$ 5.78	$ 12.06
Shellac Manicure	$ 3.21	$ 3.00	$ 5.78	$ 11.99
Spa Manicure	$ 2.56	$ 3.00	$ 5.78	$ 11.34
Spa Pedicure	$ 2.89	$ 3.00	$ 5.78	$ 11.67

Your total cost per service is your break even point. Setting the price at the break-even price will give you a profit of 0. Essentially you would be doing the service for free if you charge that amount.

Figuring Out Your Pricing Structure

Now we need to determine what we need to charge to make a living.

Lets say my goal is to make $15 an hour.
For the sake of this exercise I am going to assume that I am booked completely solid - meaning every hour I work I am booked with no gaps. If you are not booked solid (and honestly, who is?) then you need to figure out how much you need to make during the hours you are working to cover the hours you do not work. I will be writing a post on that soon (and yes it involves more math!).

Service	Total Cost per Service	Service Timing (hours)	Salary	Minimum Price to Charge
Acrylic Full Set	$10.65	1.50	$22.50	$ 33.15
Gel Full Set	$ 12.06	1.50	$22.50	$ 34.56
Acrylic Fill	$ 10.65	1.00	$15.00	$ 25.65
Gel Fill	$ 12.06	1.00	$15.00	$ 27.06
Shellac Manicure	$ 11.99	0.75	$11.25	$ 23.24
Spa Manicure	$ 11.34	0.75	$11.25	$ 22.59
Spa Pedicure	$ 11.67	1.00	$15.00	$ 26.67

So now you have a price that will make you a profit and a living wage (assuming you are booked solid!). Ask yourself this: Can I sell my services at this price and still be competitive? If the answer is no, then you have the following alternatives:

• lower your direct costs, fixed costs or desired profit
• make your service unique and market it as such
• reduce your timing or salary expectations
• Get in more clients to spread out your fixed costs further
• consider not selling this service and focus your attention instead on services that have a better profit margin or less competition.

Resources & References
http://smallbusiness.chron.com/target-market-salon-industry-21637.html
http://www.entrepreneur.com/article/53786
http://www.nailsmag.com/article/81998/determine-your-target-market
http://articles.bplans.com/how-to-determine-your-tam-total-addressable-market/
http://www.inc.com/guides/2010/06/defining-your-target-market.html
http://www.nailsmag.com/article/108396/figure-it-out
http://smallbusiness.chron.com/depreciate-beauty-salon-taxes-33545.html

Business Basics: Pricing Services

I think that the question that is most asked in online nail tech groups and forums is "What do you charge for xyz?" and frankly I am always amazed at the question. For one, what I charge is not likely the same as what you would (or should) charge - unless you have the exact same training as I do with the exact same quality of work and work across the street from me. There are so many factors in figuring out your pricing that it can be mind boggling. So let's break it down.

 

[I should mention I have a degree in Business Administration. I am not a CEO or anything but I do "get" how business works and I believe it is something that nail technicians needs to understand and luckily I am also a nail technician and can speak "business" without putting you to sleep (I hope).]

 

Factors

What factors affect how you should price your services?

• Location
• Overhead costs
• Service timing
• Competition ("supply and demand")
• Technician qualifications (more training = higher prices)
• Customer Service & "extras"   

Location

In business, as in real estate, it's all about location, location, location!  You will not be able to charge the same prices in an inner city, lower middle class neighborhood as you can in a high-end day spa in an expensive suburb.  But that doesn't mean that because the area doesn't warrant charging $100 for a full set of nails that you cannot charge what you are worth.  Just take into account where you are located - you do not want to price yourself out of business!

   

Overhead

Even if you don't own a full fledged salon with employees and you work out of your home salon, there are still many costs associated with doing business besides just the cost of your products!

 

Taxes, rent, utilities, insurance, marketing, licensure and transportation are all overhead. Part of the overhead costs must be allocated to each service performed and must be adjusted annually.

 

Service Timing

Time equals money, its true.  Setting your prices based solely on what someone else charges and not based on your time is setting yourself up for failure.

Decide how much money you need to make per hour.  Lets say you need to pay yourself $20 per hour.  This does not mean you price your 1 hour pedicure at $20!  You need to make $20 after all of your other costs are taken into account. 

Take your product cost - lets say $3 - and your overhead costs - lets say we figured out $12 per service for overhead - then the absolute minimum you can charge for a 1 hour pedicure is $35.  Now if you think about the fact that being self employed means you pay extra in self-employment taxes, you might want to adjust your prices to account for that as well.  If you do discounts or coupons you may want to pad your starting prices to help offset those.  If you offer "free" extras then you need to add in a bit for that as well. Lets say we determine that we need to charge $40 for a 1 hour pedicure just to make $20 commission.  So that means our 1 1/2 hour full set needs to be at least $60 and a half hour basic manicure needs to be $20.  Make sense?  Good because in my next post we are going to do some more math <evil grin>

**all numbers here are off the top of my head and not representative of anything other than an example**

 

Competition
The goal of business is to make a profit. If the salon down the street is charging $15 for a full set of nails, that doesn't mean that you need to lower your prices to compete with them, especially if it means that you will not make a profit on that service.  High volume salons make very little profit on each service - their strength is in quantity, not necessarily quality. Do not try to compete with them (unless that is your business plan).  Instead, highlight other factors, like customer service.

 

 

Tech Qualifications

In every industry, people with more training get more money. My sister is an auto mechanic - every time she goes to training and gets a certification - boom - she gets a $1 an hour raise. In the business world, people with Masters degrees make more money.

 

As a nail technician, any additional training, including trade shows, or certifications you obtain absolutely justify a higher cost for your services because you are more qualified at doing them.  Have you set foot into the competition arena?  If you have won or even placed second or third in a competition you are justified in raising your prices.  Anything you do to raise your status and skills in the industry justifies charging more! 

 

 

Customer Service & "Extras"

Not charging enough is a common problem for small businesses simply because  they frequently find that their costs are higher than they anticipated or they are competing with much lower priced (and lower value) businesses. Many techs do have one advantage, though, and it’s one that justifies charging a higher price – service!

"I’d rather add on an upgrade to spoil my client than have to rush and fit in more people because I am not making enough. That’s not fair to anyone." ~ JESSICA MAHLER, Painted Red Nails, Osterville, Mass.

Clients must feel that they are getting “value” for their dollars spent.  If a client has money to spend and could get a basic service or a service with "extras" included, they will opt for getting the "extras" every time.  Who doesn't like "free"?

I know of people who offered free paraffin dips (product cost is minimal and clients can dip themselves) and one tech I know offers free basic French nails (white tips airbrushed - it literally took her less than a minute, she did not include pink or anything other than white airbrushed tips for free).  Free nail art on one finger, guaranteed work for one week after a service,  etc, etc.  My point here is if you are offering "free" things then your prices should be set to cover those amenities (so they aren't really free, just built into the price).  Its like a hotel - you get free soap and shampoo but do you really think they are free?  Nope, they are built into the price of the room.  Same concept. 

The important thing here is you need to MARKET these things to make yourself stand out from the competition and justify your prices.  One easy way to market your service is when someone asks the price of a full set of nails you answer, "My full sets are $60 and that includes a hand massage, free paraffin dip and free optional French upgrade and they are guaranteed for one week." 

Some other things that can help you justify higher prices or selling above your competition. include:

• Satisfaction in handling customer complaints
• Knowledge of product or service
• Helpful and friendly staff (even if it's just you!)
• A convenient or exclusive location
• Exclusive merchandise (if you sell retail)

I hope this helped you think a bit more about pricing your services.  Stay tuned for more posts on pricing coming soon...

 

Resources: 

http://www.nailsmag.com/article/90938/the-pricing-problem

http://www.nailsmag.com/article/91245/how-to-raise-your-prices
http://www.nailsmag.com/qa/93942/how-do-you-announce-service-price-increases

https://www.sba.gov/blogs/how-price-your-small-business-products-and-services 

https://www.sba.gov/blogs/how-avoid-falling-price-war-focusing-value