Why basing your prices on others in the industry does more harm than good

Setting your prices based on what others charge might seem like a safe approach, but it can actually do more harm than good. Every nail and beauty business is different, with varying overheads, skill levels, and experience. Copying someone else’s pricing structure without fully understanding your own costs is a fast track to undercharging, overworking, and ultimately, burnout.

Your overheads aren’t theirs

One of the biggest mistakes beauty professionals make is assuming that because another business in their area charges a certain rate, they should too. But what if:

• They work from home and you rent a salon space?

• They use lower-cost products while you invest in premium brands?

• They have fewer bills to cover, or receive financial support elsewhere?

Without a clear understanding of your own expenses, you could be charging prices that don’t even cover your costs, let alone make a profit.

Skills and experience should factor in

Your pricing should reflect your expertise, not just what others are doing. If you’ve invested years in training, perfected your craft, and built a strong reputation, you should charge accordingly. Those with less experience may charge lower prices to attract clients, but that doesn’t mean you should follow suit—your value is based on what you bring to the table, not just where you’re located or whether or not you're happy with minimum wage.

Know your numbers

If you don’t understand how your prices are calculated, you’re setting yourself up to fail. Pricing isn’t about picking a number that feels right—it’s about:

• Covering all your business costs (rent, bills, insurance, stock, training, etc.)

• Paying yourself a fair wage (why do I see so many talented pros basing their hourly rate on minimum wage?! You are skilled professionals!)

• Factoring in taxes and reinvesting in your business

• Making sure your time is being properly valued

Without tracking these, how do you know you’re actually making money? If you’re only covering costs or barely breaking even, you’re working for free.

How do you know you’re winning if you’re not keeping count?

Running a successful business means knowing your numbers inside and out. Regularly reviewing your income and expenses allows you to:

• Adjust prices as needed

• Identify where you might be losing money

• Make informed decisions about discounts, promotions, or new services

  
  

The bottom line

Instead of basing your prices on what others charge, focus on understanding your own business. Work out your expenses, value your time, and price your services in a way that ensures profitability. If you’re not keeping count, you won’t know if you’re truly succeeding.

Are you confident in your pricing strategy? If not, it might be time to take a closer look at your numbers. The Nail Your Career community is behind you every step of the way!