Learn How a $300 Haircut Will Raise Your Company’s Profits
I heard a great story from Derek Halpern who spent over $300 on a men’s haircut. Seriously. What’s the difference between a $300 haircut and a $10 haircut? It all comes down to the experience and expectations.
One of the easiest ways to increase company profit is to increase pricing. Many people struggle with this and say, “People wouldn’t buy from me if I raise my prices and they would go to my competition.” That’s not TRUE!
When Derek arrived at the studio (not the barber shop) they walked him over to the bathroom to put on his robe. The stylist listened to him for a while and then started making recommendations based on the shape of his jaw line and his hair type. The stylist spent 45 minutes doing the sides of his head with a “gold” comb, and then another 45 minutes on the top of his head. Finally, the stylist walked him through the step-by-step process to style his hair on his own.
Here are two takeaways from this $300 haircut that you can apply to your business…
- The business changed the terminology from ‘barber shop’ to ‘studio.’ By doing this, guests do not have any preconceived notions of what to pay and they can charge anything they want. Smart. If you want to charge higher prices, avoid general terminology and do something that stands out.
- People can charge whatever they want for their service if they deliver a unique experience and the vision. Meaning, if you are great at what you do, provide an experience that is different and educate your clients on what they can do differently to better themselves, you can charge just about anything you want. What things can you recommend to your clients that they don’t already know? How can you make your customers feel different and special?
Whatever’s the industry standard… do better. You need to be great at what you do and hone your craft. It wasn’t just a haircut – it was a learning experience.