How Emotional Discounting Hurts Your Hairdressing Business

As a freelance hairdresser, you will have faced situations where you felt tempted to lower your prices or offer discounts to your clients. Maybe you wanted to attract new customers, retain loyal ones, or simply avoid losing a booking. While this may seem like a good strategy in the short term, it can have negative consequences for your business in the long run. This is what we call emotional discounting, and it can be detrimental to your profitability, reputation, and self-worth.

What is emotional discounting?

Emotional discounting is when you reduce your prices or offer discounts based on your feelings, rather than on your business goals, expenses, and value. For example, you may feel sorry for a client who is going through a hard time, or you may feel guilty for charging more than your competitors. You may also feel insecure about your skills or fearful of losing clients to other hairstylists. These emotions can cloud your judgment and make you undervalue your work.

Why is emotional discounting bad for your business?

Emotional discounting can have several negative impacts on your freelance hairdressing business, such as:

• Reducing your income and profit margins: When you lower your prices or offer discounts, you are essentially giving away money that you could have earned. This can affect your cash flow, your ability to cover your expenses, and your potential to grow your business.
• Damaging your reputation and brand image: When you discount your services, you are sending a message to your clients and the market that you are not confident in your value or quality. This can undermine your credibility and professionalism, and make you appear desperate or cheap. It can also create a perception that your services are not worth paying full price for, and that you are willing to negotiate or compromise on your standards.
• Lowering your client satisfaction and loyalty: When you discount your services, you are setting unrealistic expectations for your clients and yourself. You may feel pressured to deliver more than what you are paid for, or you may end up cutting corners or compromising on quality. This can lead to dissatisfaction, complaints, or refunds. Moreover, you may attract clients who are only looking for the lowest price, rather than the best value. These clients are likely to switch to another hairstylist who offers a better deal, or to ask for more discounts in the future.
• Decreasing your self-esteem and motivation: When you discount your services, you are telling yourself that you are not worth what you charge, or that you are not good enough to compete with other hairdressers. This can affect your self-esteem and confidence, and make you feel resentful or unhappy with your work. It can also demotivate you from investing in your skills, your tools, or your marketing, as you may feel that you are not getting a fair return on your investment.

How can you avoid emotional discounting?

To avoid emotional discounting, you need to change your mindset and your habits. Here are some tips to help you do that:

• Know your numbers: Before you set or change your prices, you need to know your costs, your income, and your profit margins. You also need to know your break-even point, your target revenue, and your growth goals. This will help you determine the minimum and maximum prices that you can charge, and the optimal prices that will allow you to achieve your desired results.
• Know your value: Besides your numbers, you also need to know your value. This means knowing your skills, your experience, your qualifications, and your unique selling proposition. You also need to know your target market, your ideal clients, and their needs, wants, and pain points. This will help you communicate and demonstrate the benefits and outcomes that you can provide, and the reasons why you are worth paying full price for.
• Know your policies: To avoid emotional discounting, you need to have clear and consistent policies for your pricing, your booking, your payment, and your cancellation. You also need to communicate these policies to your clients upfront, and stick to them. This will help you avoid confusion, misunderstanding, or conflict, and establish trust and respect with your clients.
• Know your alternatives: Instead of offering discounts, you can offer alternatives that will add value to your clients, without reducing your income or profit. For example, you can offer packages, memberships, you could offer a colour service that requires less maintenance, or an alternative service already on your price list that is more budget friendly for your client

Conclusion

Emotional discounting is a common pitfall for freelance hairdressers, but it can be avoided with the right mindset and strategies. By knowing your numbers, your value, your policies, and your alternatives, you can charge what

How Rebel Rebel Hair Studio can help you avoid emotional discounting

If you are a freelance hairdresser who wants to avoid emotional discounting, you may be interested in joining Rebel Rebel Hair Studio, a co-working salon for independent hair professionals. Rebel Rebel Hair Studio is located in Oxhey Village, Watford, Hertfordshire, and offers a peaceful and beautiful environment for you to collaborate with other experienced, qualified, and fully insured hairdressers. By renting a chair within Rebel Rebel Hair Studio, you can run your own business within a supportive and professional community, without having to worry about the overheads, maintenance, or marketing of a traditional salon. You can also benefit from the eco-conscious, ethical, and sustainable practices of Rebel Rebel Hair Studio, which will enhance your reputation and brand image. To find out more about Rebel Rebel Hair Studio visit our opportunities page