How did you arrive at your pricing model?

Did you get there by looking at what other barbers charge, going with the industry standard, or did you use a formula that applied to your specific situation?

Haphazard pricing is part of the reason many barbers are stressed.

You've heard me say many times that money is the number one cause of stress, whether you have a little of it or a lot of it. What if you only have a little of it because your pricing isn't right for your business and lifestyle?

That is why this issue is about pricing clarity.

This week, I’ll address the pricing formula every prosperous barber needs.

In each system, I'll touch on:

• Mental Health System I'll talk about the stress of finding the right price for you and what happens when you don't have the right price for your business and lifestyle.

• Money System I'll talk about what takes away from your revenue and profit when your pricing is off.

• Business System I'll give you the exact formula you need to use in order to get to the right price with clarity and confidence.

I'll be sure to use examples to help you apply what I'm discussing here to your specific situation, but I'll also give you a free resource you can use to calculate your own price.

Mental Health System

You've likely been thinking about raising your prices, but you're feeling unsure about how to do it.

Before we talk about how to do it, which I will address in future issues, let's talk about why you need to do it.

However, if you want to book now, book a session with me to figure out your pricing now. Read on, I'll tell you how you can do that below.

If you've been feeling stressed when you look at your numbers at the end of the day or week, that's your brain trying to tell you something.

Your brain is comparing the aches and pains you feel in your body with the amount of money deposited into your bank account, and the two don't match.

Your brain is logical, and it can add even if the numbers are off.

There is no number that can match your value because you are priceless, but there is a number that makes you feel like your hard work was worth it.

What is that number?

Do you know it?

Do you want to have it?

Then today is the day you make the commitment.

Your action this week:

Commit to raising at least one of your menu prices.

If you don't commit to raising at least one of your menu prices, you'll continue to feel that yucky feeling at the end of the week.

You'll also begin to resent your clients as they advance in life while you stay the same.

You may find yourself looking at other barbers and feeling jealous because they have things or do things that you can't.

Is this how you want to feel?

No!

So what if I told you the money is there, but it's behind your fear of rejection?

In Issue 13, we addressed this. Go back and read it if you don't remember.

Mentally, you feel it.

Physically, you feel it.

But that mental or emotional obstacle keeps you stuck at the same price.

The good news is, if you want to keep the same lifestyle, you are on the right path.

But if you want more, and I know you do, then it's time for you to address your Money Mentality and adjust it.

Feel the fear and commit to raising one of your prices anyway.

Here's why:

What if instead of you comparing yourself to other barbers, you were the benchmark, meaning other barbers look at your for the industry standard.

Are you there yet?

Are you the industry standard?

You can tell by how you feel.

Is the feeling at the end of the week yummy or yucky?

You can feel it when your schedule is full, your body is working, your expenses have changed, and your life is asking for more.

This means it's time for your price to change and fit not only what the industry calls for, but what you desire.

Your desires are valid.

But sometimes the price stays the same because the mind starts asking questions.

What if they leave?

What if they complain?

What if they book less?

What if somebody says something and I don't know what to say back?

You are not alone. Many business owners feel this.

Especially business owners who are pricing a service.

Even more from business owners who look their clients in the eye instead of hidding behind an ecommerce website or an employee. 

What you feel is valid, but it is holding you back, so it's time to adjust it.

Money System

If your price isn't right, your shop, your customer service, and your leisure time all suffer.

You can't afford to fix what's broken or wearing down.

You can't give your best to your customers, and instead of resting, you're thinking about what's going wrong.

Most barbers were taught theory in school, but they were not given a business math course.

They learned how to provide the service, but not how to calculate the price that supports the life, business, and peace of mind they actually want.

Pricing should not begin with comparison.

It should begin with clarity.

Your price should be built from your responsibilities, your goals, your business costs, your capacity, and the quality of life you are building.

Does your current money system take this into account, or do you try to fit your lifestyle into whatever you bring home?

That can work, but it leaves you feeling behind and underappreciated.

Basically, it leaves you feeling yucky!

A prosperous barber does not borrow another barber’s price.

A prosperous barber builds a price from the life, business, and people he's responsible for.

Business System

Your price needs to account for what is happening inside your business and inside your life.

Things like:

• What it costs to run your business
• What you need to take home
• What you need to set aside for taxes, insurance, and investing
• How many clients you can realistically serve each month

This is what happens in a Pricing Clarity Session with me. I walk you through the real numbers.

For example, in this exercise, use a simple planning number:

200 cuts per month.

You may not cut exactly 200 heads every month.

You may cut more.

You may cut less.

This formula takes that fluctuation into account. It gives you room for vacancy, slower weeks, cancellations, family responsibilities, sick days, holidays, and real life.

If you cut more than this formula accounted for, consider that your bonus week or bonus month. But also think about where you'll apply your bonus money into your financial goals.

Here is a formula you can use to gain more clarity and control:

Minimum Average Cut Price = Total Monthly Need ÷ 200

Your Total Monthly Need includes the money required for your business, your life, your taxes, your insurance, your savings, your rest, and your future.

You'll need to add these up. I created a worksheet and a spreadsheet to help you do this if you need it.

But let's keep going with the example. If your Total Monthly Need is $11,000:

$11,000 ÷ 200 = $55

That means your Minimum Average Cut Price is $55.

From there, you can price your add-ons like shaves or enhancements to give you a higher per-service price. 

That number gives your pricing a target. Don't drop below $55 per cut.

Now you can look at your service menu, your schedule, your add-ons, your rebooking, and your service mix with logic, not emotion.

When the business system is running smoothly, your price is not random.

Your services have purpose.

Your schedule supports your energy.

Your booking flow has boundaries.

Your boundaries create policies that protect you and your business.

Your clients know what to expect, and they give you and your business more respect.

This gives you peace of mind, money flow, and a business you can count on to help you save for retirement. When you have a business system...

You know what you need to earn.

You know how many appointments your body and schedule can handle.

You know which services support the business best.

You know when it is time to adjust.

That is how a barber moves from working hard to working with structure.

And I haven't even told you how to make money when you're not standing behind the chair. I'll do that in two weeks.

So make sure you're subscribed. The link is below. 

The system I am showing you is about taking the skill, trust, knowledge, and client experience you already have and putting a stronger system underneath it.

That is how you build toward All Day Money.

Want the pricing worksheet so you can work through your numbers? Click here and download it free. 

Inside the Prosperous Barber Network

The pricing worksheet is available in the Prosperous Barber Network but you'll also get a pricing calculator to add up your numbers for you.

I'm building the world's largest global barber network offering mental health and money systems.

It's called The Prosperous Barber Network and it's for experienced barbers who already have a working business and want to build onto it with more structure so they can enjoy life today while saving for a comfortable future.

Remember, this is not about starting from scratch. It is about taking the skill, trust, knowledge, and client experience you already have and turning more of it into systems that bring you "All Day Money."

The Founding Beta is open now.

Inside the Network, you get immediate access to:

• Visualize Your Prosperous Life:  This Async Session is a powerful exercise that will help you see your true desires personally and professionally without anything in the way.
• Chair Sessions 101: A downloadable ebook giving you the exact framework you need to control the conversations you have with clients so you don't take on their stress and feel weighed down at the end of the day.
• Discussion Topic: One discussion topic each week with other barbers helping you take action toward your vision. I'll be there too.

The "Stress and Money" series is a bonus. 

It is a YouTube series that I put inside the Network so you can always refer back to it easily.

You may have already started the series on YouTube and that's how you got here. If so, Way to Grow! You're in the right place.

This is for barbers who are committed to building systems for their business that bring them All Day Money, but don't want to do it alone.

It is for barbers and shop owners who want to build with support, rhythm, and community.

Join the Prosperous Barber Network Founding Beta Now!

Did You Know?

Did you know the barber pole is one of the most recognized business symbols in the world?

For generations, that symbol has told the community one clear thing:

A skilled professional is available here.

That is powerful.

Your chair is not just a place where people get cleaned up.

It is a trusted local business.

It is a service hub.

It is a relationship center.

It is a place where people return because of skill, consistency, and care.

Subconsciously, you knew this, but now make it part of your conscious intention. You are a barber and that means you are one of the most recognized professionals in the community. 

Your pricing should reflect that.

From the Chair

In between clients, take time to lower your stress using one of the mental health tools I offer.

Here is a link to our resource page.

There you will find:

• A place to subscribe to the Journal if you are not already subscribed
• A link to take the Money Mentality Quiz
• The Know Your Numbers worksheet
• A way to join the Prosperous Barber Network Founding Beta

Click here now to go to the main resource page and get access to all we offer.

If you know you want to get into the network, go here to join the Prosperous Barber Network Founding Beta, but book mark the resource page, you'll need it later.

I'll see you sooner. Love you muchly!

Kiné

P.S. Send this issue to a barber you respect. Tell them to start by reading issue 14, then subscribe. This well help them understand what the PBJ is all about. Start here!