On today’s episode, we have Christina Kreitel. Her and Elizabeth did a webinar on The Perfect Pricing and budgeting!
1:30 LET’S TALK BUDGETING!
Christina on budgeting “If you don’t know how to budget, you shouldn’t have a business.”
You control your money, don’t let your money control you! Learning to control your money can be out of your nature as a hairstylist, but it is crucial that you get help because it can be the most empowering feeling! If you want to be a successful hairstylist and business owner, you have to figure it out!
4:00 STEPS TO TAKE TO BUDGET
Business if personal. Your life is different than another person’s life and that doesn’t mean it’s wrong. You have different goals and intentions and it’s important to remember that.
#1 DO THE MATH. The cost vs. the efforts need to be balanced.
After hairstylists calculate their costs, many are only making $5-7 an hour.
Follow @megbrownbalayage. She calculates her inventory very simply.
Look at your back stock and calculate how much you have. If you have product that has been there for over 1 month, you don’t need it! It’s better to take extra tips to keep it fresh, then to sit on color you don’t use. Take it back to SalonCentric and extend it. Look at exactly what you NEED.
Also, look at how much TIME you are spending on your clients. Are you making $200 on a client that you spent 2 hours with or did you spend 8 hours with them? Put a time limit on your clientele!
Make sure your clients understand in the consultation your boundaries and time limit and exactly what you can do for them with the amount of money and time they are willing to pay.
With these documents you track how many clients you see, your application time, and your costs (the easiest way to do this is with SalonScale!)
After you calculate your cumbers, it’s time to stabilize! Once you get your numbers, you can decide what to do with your prices. From there, you go into building your pricing menu!
Your pricing menu is your formula to come up with something simple to show them.
All your clients care about are: The end result, Time investment, and Money investment.
33:30 HOW DO YOU GET OUT OF DEBT AND MANAGE YOUR MONEY?
Step #1. Have self control!
Don’t spend money on non-important items and get honest with yourself and your expenses.
Step #2. Remember your goals and ignore the critics
Do what you need to reach your goals.
47:00 CHRISTINA’S ADVICE
Get Elizabeth’s Perfect Pricing Method
Listen to Dave Ramsey’s book.
Elizabeth recommends to be willing to sacrifice things now for the bigger picture!