How to price your services

Step 1: work out the supplies cost per service

List everything used up in the service and work out how much each item costs per service. If a $20 bottle lasts for 20 services, each service uses $1 of that product.

Don't forget disposables: gloves, cotton, towels, files or capes. They're cheap one by one, but they add up.

Step 2: measure the real time

Count from when you prepare to when you clean up, not just the time with the client. A service that “takes an hour” may take you an hour and a quarter in total. If you do home visits, travel time is charged with the travel fee, separately.

Step 3: decide how much you want to earn per hour

Divide what you need to earn per month by the hours you spend with clients that month. For example, if you need $3,000 and work with clients 120 hours a month, your target is $25 an hour.

Use real hours with clients, not the hours you spend available and waiting.

Step 4: leave a share for the business

If the price only covers materials and your pay, the business never saves to replace equipment, take courses or get through a slow month. That's why each sale should leave a share for the business. With Rentablo's split, the minimum price is the higher of these two:

• For supplies: supplies cost ÷ supplies percentage.
• For time: (hourly earnings × hours of the service) ÷ pay percentage.

Whatever is left stays as business profit.

Examples

Example figures with the Balanced profile (20% supplies, 50% pay, 30% profit) and a target of $25 an hour. Your costs and your city change the result.

• Gel manicure: $4 in supplies and 75 minutes. For supplies: $4 ÷ 20% = $20. For time: $25 × 1.25 h ÷ 50% = $62.50. Minimum price: about $63.
• Haircut: $2 in supplies and 40 minutes. For supplies: $10. For time: $25 × 40 min ÷ 60 ÷ 50% ≈ $33.33. Minimum price: about $34.
• Home massage: $5 in supplies and 60 minutes. For supplies: $25. For time: $50. Minimum price: $50, plus the travel fee, charged separately.

Compare with the market

The calculation gives you your floor: below that price you lose money. Then check what similar businesses charge in your area. If your price is far above, see whether you can cut time or supplies, or explain clearly what your service includes. If it's far below, you're probably undercharging.

When and how to raise your prices

• When your supplies go up.
• When your schedule is full for several weeks in a row.
• When you learn a new technique or upgrade your materials.
• At least once a year, so inflation doesn't leave you behind.

Give two to four weeks' notice, explain the reason in a few words and keep the old price for appointments already booked. A WhatsApp message to your regular clients works well.

Frequently asked questions