Learn how to price your salon, spa, or esthetician services for profitability. Includes pricing formulas, strategies for raising rates, and tips for communicating value to clients.
Pricing is one of the most stressful decisions beauty professionals face. Charge too little, and you're working yourself to exhaustion for pennies. Charge too much, and you fear losing clients to competitors.
Most beauty professionals undercharge. They set prices based on what feels comfortable rather than what actually makes their business sustainable. The result? Burnout, resentment, and businesses that barely break even despite fully booked schedules.
Let's fix that. Here's how to price your beauty services for real profitability.
Before we get into formulas, let's address why underpricing is so common:
Imposter syndrome — "Who am I to charge that much?" You compare yourself to industry veterans and forget that your skills have value right now.
Fear of losing clients — You'd rather have a full book at low prices than risk empty slots at higher prices.
Not knowing the math — Many beauty pros set prices by gut feeling or copying competitors without understanding their own costs.
Confusing busy with profitable — A packed schedule feels successful, but if you're not profitable, you're just running a very busy charity.
Emotional pricing — You feel bad charging friends, family, or loyal clients what your services are actually worth.
Here's the truth: undercharging doesn't make you humble—it makes you broke. Your expertise, training, products, rent, and time all have real costs. Your prices need to cover those costs and leave room for profit.
Before setting prices, you need to understand what each service actually costs you to deliver.
These are costs that occur every time you perform a service:
Example: A facial might use $15 in products and disposables.
These are your ongoing business expenses divided across all services:
To calculate overhead per service hour:
Example: $3,000 monthly overhead ÷ 120 service hours = $25/hour in overhead
This is where most beauty professionals drastically undervalue themselves.
Your time includes:
If a 60-minute facial actually takes 90 minutes of your total time (including prep, cleanup, and notes), you need to price for 90 minutes, not 60.
Here's a simple formula to calculate your minimum viable price:
Minimum Price = Product Cost + (Overhead per Hour × Total Time) + (Desired Hourly Rate × Total Time)
Let's use a facial as an example:
Minimum Price = $15 + ($25 × 1.5) + ($60 × 1.5)
Minimum Price = $15 + $37.50 + $90
Minimum Price = $142.50
That's your floor—the minimum you should charge to hit your income goals while covering costs. You can (and often should) charge more based on your expertise, location, and demand.
Your minimum price is just the starting point. Several factors allow you to charge premium rates:
Years of experience, advanced certifications, and specialized training justify higher prices. A master esthetician with 15 years of experience shouldn't charge the same as someone fresh out of school.
Prices in Manhattan are different from prices in rural Kansas. Know your local market, but don't race to the bottom.
Specialists command higher prices than generalists. If you're known as THE microblading expert or THE corrective skincare specialist in your area, you can charge accordingly.
A track record of amazing results, glowing reviews, and word-of-mouth referrals earns premium pricing. Document your work, collect testimonials, and let your results speak for themselves.
The overall experience matters—ambiance, amenities, professionalism, convenience. A luxurious spa experience justifies higher prices than a basic service.
If you're consistently booked 4-6 weeks out, you're underpriced. High demand is the market telling you to raise your rates.
Knowing your market helps you position your prices appropriately:
Important: Don't just copy competitor prices. Understand what they offer at those prices and how your services compare in terms of quality, experience, and results.
Offer good-better-best options:
Tiering lets clients self-select based on budget while giving high-value clients a premium option.
Bundle services at a slight discount to increase average transaction value:
Packages also improve client retention—they've already paid, so they'll come back.
Monthly memberships create predictable recurring revenue:
Memberships transform one-time clients into committed regulars.
Low-cost add-ons with high perceived value increase revenue without much extra effort:
Many clients will add these small extras, significantly boosting your average ticket.
If you're currently undercharging, you need to raise your prices. Here's how to do it with confidence:
Don't surprise clients. Announce price increases 30-60 days in advance:
"Starting March 1st, our service prices will be updated to reflect our continued investment in advanced training, premium products, and the exceptional experience you've come to expect. We're grateful for your continued support."
Consider giving your most loyal clients a grace period or a smaller increase:
"As a valued client, your current pricing will remain the same through March 31st."
This softens the transition and rewards loyalty.
State your new prices with confidence. You're not doing anything wrong—you're running a sustainable business. Apologizing makes it seem like you're doing something you shouldn't.
If possible, enhance the experience when you raise prices:
This gives clients something tangible to associate with the new pricing.
Not every client will accept higher prices, and that's okay. Clients who only value you because you're cheap aren't your ideal clients. The clients who stay (and the new ones who find you at your real value) will be better fits for your business.
Pricing isn't just about numbers—it's about communicating why you're worth it:
Most clients have no idea about:
Share this knowledge. When clients understand the value, price becomes less of an issue.
Don't just sell "a facial"—sell clear skin, confidence, relaxation, self-care. Outcomes are worth more than activities.
Before/after photos, client testimonials, and success stories justify premium pricing better than any explanation.
If you seem unsure about your prices, clients will be unsure about paying them. State your prices clearly and confidently. If asked, briefly explain the value without being defensive.
Watch out for these common pricing mistakes:
❌ Pricing based solely on competitors — You don't know their costs, goals, or profitability
❌ Discounting too often — Trains clients to wait for sales instead of paying full price
❌ Charging friends/family differently — Creates awkwardness and devalues your work
❌ Not raising prices annually — Costs go up every year; your prices should too
❌ Complicated pricing — Confusing price structures frustrate clients
❌ Emotional pricing — Letting guilt or fear dictate your rates
Schedule regular pricing reviews:
Here's your pricing action plan:
Pricing your services correctly isn't greedy—it's necessary. You deserve to run a profitable business that rewards your expertise and hard work. Start charging what you're worth.
Struggling with pricing decisions? ProBeauty AI includes a Pricing Strategist AI assistant that helps beauty professionals analyze their costs, research market rates, and set profitable prices with confidence. Learn more about ProBeauty AI or get started free.
Join thousands of beauty professionals using AI to grow.
