Confidently Raise Your Prices and Build a More Profitable Business

Let’s get real—if you’ve ever struggled to confidently raise your prices, you’re not alone. Maybe you’ve been stuck at the same rates for years, worried that increasing them might scare off clients. Or perhaps you’ve been basing your pricing on what other stylists are charging, without really knowing if it’s the right move for you.

I’ve been there too, but the good news is you can raise your prices in a way that reflects your value, without feeling guilty or losing clients. Today, I’m sharing the steps that helped me take control of my pricing—so by the end of this post, you’ll be ready to charge what you’re truly worth with confidence.

When I Was Stuck Charging $35 for Haircuts

Let me take you back to when I first started renting a chair. I had ZERO clients. I had just left a commission salon, where I had a full book, to go to college full-time (yep, gave up a full clientele—crazy, right?). But when I realized college wasn’t for me, I found myself standing in a new salon with no clue what to do next.

Naturally, I based my service menu on what the other stylists around me were charging. I had been a stylist for eight years at that point, but I was still charging $35 for haircuts. I didn’t question it—after all, that’s what the others were charging, so it felt “normal.”

Fast forward two whole years, and guess what? I was STILL charging $35 for haircuts. I had never given myself a raise, never questioned my pricing. Sound familiar?

It wasn’t until I sat down, got real about my expenses, and realized I had been massively undercharging for TEN years, that I finally did something about it. And now, I’m sharing what I learned so you don’t have to make the same mistakes I did.

Step 1: Understand the Expenses of Running Your Business to Confidently Raise Your Prices

Before you can confidently raise your prices, you need to know your numbers. What does it actually cost you to run your business every month? This isn’t just about rent—it’s everything that goes into keeping your chair open.

Here are some expenses to consider:

• Salon or chair rent
• Backbar products (shampoo, conditioners, treatments)
• Inventory like color, lightener, and styling products
• Utilities (electricity, water, etc.)
• Software for booking or payments
• Continuing education
• Business apps like (Canva, photo editing apps etc.)
• Insurance, taxes, and licenses
• Little touches, like offering your clients drinks or snacks

Add it all up—this is the cost of doing business. It’s the bare minimum you need to cover just to keep things running. Without knowing this, you’re just guessing when it comes to pricing, and we’re done with guessing!

Add up all of your monthly business expenses and divide the total by the number of hours you work per month, this will give you the BASELINE of what you need to factor in just to cover your expenses.

Step 2: Factor in the Value of Your Time and Product Usage for Accurate Pricing

Now, let’s talk about time. You’re not just charging for a haircut—you’re charging for the time it takes to do that cut. Every service should reflect the time, energy, and skill you bring to the table.

Start tracking how long each service takes. If a color service takes you two hours, the price should reflect that. Longer services = higher prices, period.

Then, let’s get real about product usage. How much product are you using per service? You’d be surprised how much money you can lose on color services if you’re not tracking product costs. I used to go through color and lightener without even thinking about it.

You want to know how much PER OUNCE each product costs you. For example say the lightener you use costs you $50 for 32oz, take the $50 and divide it by 32 = 1.56. So it costs you $1.56 PER OUNCE of lightener. You will want to figure out the cost per ounce of all of your backbar products.

Here’s a tip: weigh out your products and know how much you’re using for each service. This helps you calculate product costs per service, so you’re not accidentally eating into your profits.

Once you get a handle on time and product usage, you’ll see how it all factors into your ability to confidently raise your prices and charge what you’re truly worth.

Step 3: Establish Your Hourly Rate and Confidently Raise Your Prices Based on Income Goals

Okay, now for the part where you really start to take control—setting your hourly rate.

Think about this: how much do you want to make in a year? Let’s say you have a goal of $100,000 (because, girl, you deserve that and more!). Here’s how to price your services confidently:

1. Decide how many hours you want to work per week. Let’s say 30 hours.
2. Multiply that by 52 weeks. This gives you 1,560 hours of work in a year.
3. Divide your income goal by your hours. In this case, $100,000 divided by 1,560 hours = roughly $64 per hour.

That’s your baseline hourly rate (without factoring in the cost to run your biz– take your ideal hourly rate and then compare it to your cost of biz hourly rate. If it costs you $30 per hour to RUN your biz you’ll want to factor that in to your ideal hourly rate). If you’re charging less than that per hour, you’re not going to hit your income goal. This is where you need to get honest with yourself—are your current prices in line with what you really want to make?

Step 4: Calculate Service Prices by Considering Time, Products, and Overhead Costs

Now let’s put it all together. You know your business costs, your time per service, and your product usage. Here’s how to price your services confidently:

1. Track your service times: Write down exactly how long each service takes you. (over the course of 3-4 weeks time all of your services and write them down that way you can really get an idea of how much time you’re spending on each service)
2. Calculate product costs: Weigh your color, lightener, and other products to know how much you’re spending per service. (you should also be tracking how much lightener/color you use per service so that you can set your base rate for products used, so if the average root retouch takes 3oz of color base your pricing with that in mind, that way if you use more than the 3oz you know when to charge for the extra product)
3. Determine your expenses: Add up your monthly business expenses and divide them by your working hours to find out your overhead costs.
4. Set your hourly rate: Based on your income goal and how many hours you want to work, calculate your hourly rate.
5. Price your services: Combine your service time, product costs, and hourly rate to set your prices. If you’ve been undercharging, this is where you adjust.

So go ahead, get clear on your numbers, and confidently raise your prices to start charging what you deserve.

Step 5: Stop Comparing and Confidently Raise Your Prices by Focusing on Your Worth

I know it’s tempting to compare your prices to the stylist next to you, but here’s the deal: their costs, goals, and experience are not the same as yours. You are running your own business, and your prices should reflect that.

Stop basing your prices on what you think people will pay or what someone else is charging. Your pricing should reflect the value you bring to the table—the experience, the results, and the personal touch you provide.

Final Thoughts: Charge What You’re Worth

Here’s the truth, friend: you deserve to be paid what you’re worth. No more second-guessing, no more undercharging, and definitely no more feeling guilty about raising your prices.

To recap, here’s what I want you to do:

1. Know your costs. Calculate everything it takes to run your business.
2. Track your time and product usage. Know how much each service really costs.
3. Set your income goal and hourly rate. You deserve to make the money that reflects your skills and value.
4. Price confidently. Use your service time, product costs, and hourly rate to set your prices.

Following these steps will allow you to confidently raise your prices and ensure that they reflect the value you provide.

Remember, you’re not just providing a service—you’re creating an experience, and that’s worth every penny. So go ahead, get clear on your numbers, and start charging what you deserve.