How to Price Treatments and Retail Products Properly (Not Emotionally)

One of the biggest reasons beauty businesses feel busy but not profitable is simple: pricing hasn’t been done properly.

Not intentionally.
Not strategically.
And definitely not based on real numbers.

Instead, prices are often chosen based on what competitors charge, what feels “reasonable,” or what clients might tolerate. The problem? None of those approaches protect your profit.

This final step of your business reset is about fixing that.

Why Pricing for Profit Matters More Than Ever

Pricing is not just a number on a treatment menu. It dictates:

• How much you pay yourself
• Whether your business can grow
• If retail is worth stocking
• How sustainable your workload is
• Whether you’re building a business or just a job

If pricing is wrong, everything else struggles — no matter how good your skills are.

Being fully booked does not equal being profitable.

The Biggest Pricing Mistakes Beauty Businesses Make

Before we talk about how to price correctly, it’s important to understand what usually goes wrong.

Common mistakes include:

• Copying competitors’ prices without knowing their costs
• Pricing based on confidence levels rather than numbers
• Forgetting to include tax, rent, software, insurance, and admin time
• Underpricing to “stay competitive”
• Not reviewing prices as costs increase

Pricing should never be emotional or reactive. It should be calculated.

How to Price Beauty Treatments for Profit

To price treatments correctly, you need to know what it actually costs you to deliver that service.

This includes far more than just the product used.

Step 1: Calculate Your Hourly Business Cost

Start by working out how much your business costs to run per hour.

Include:

• Rent or home salon overheads
• Utilities (electricity, water, heating)
• Software and booking systems
• Insurance, licensing, and compliance costs
• Marketing and advertising
• Education and ongoing training
• Equipment wear, maintenance, and replacement

Add up your monthly business expenses and divide by the number of hours you realistically work per month.

This gives you your hourly operating cost.

Step 2: Add Your Labour (Pay Yourself Properly)

You are not “free labour.”

Decide on an hourly wage that reflects your experience, skill level, and responsibility.

This is your non-negotiable.

Hourly operating cost

• Your hourly wage
  = Base hourly rate

Step 3: Add Product and Treatment Costs

Now add the cost of delivering the treatment:

• Product used per service
• Consumables (gloves, disposables, cotton, wax, tint, solutions)
• PPE if applicable

Be realistic — underestimating here is one of the biggest profit killers.

Step 4: Apply Your Profit Margin

Profit is not what’s left over. It’s something you build in intentionally.

A healthy service profit margin in beauty is typically 40–60%.

Formula for treatment pricing:

(Base hourly rate × treatment time)

• product cost
  = cost price

Cost price ÷ (1 − desired profit margin)
= retail treatment price

This ensures your pricing supports growth, not just survival.

How to Price Retail Products for Profit

Retail is one of the easiest ways to increase profit — but only if priced correctly.

The Standard Retail Pricing Rule

Most professional beauty retail follows a 2.2x–2.5x markup.

Example:
• Wholesale cost: £10
• Retail price: £22–£25

This markup accounts for:
• Stock holding
• VAT or tax
• Shrinkage and wastage
• Marketing
• Staff time selling

Pricing retail too low makes it dead stock. Pricing it correctly turns it into predictable income.

Don’t Forget Hidden Retail Costs

Retail pricing should also factor in:

• Shipping and import costs
• Storage space
• Payment processing fees
• Returns or damaged stock

If you’re only doubling your cost, you’re likely underpricing.

Why “Random” Pricing Holds Your Business Back

Random pricing leads to:

• Burnout
• Cash flow stress
• Resentment toward clients
• Inability to scale
• Constant discounting

Strategic pricing gives you:
• Clarity
• Confidence
• Better clients
• Room to grow
• Control over your business

Pricing properly is not greedy — it’s responsible.

When to Review and Increase Prices

Pricing is not set forever.

You should review pricing when:
• Product costs increase
• Rent or overheads increase
• Demand grows
• You upskill or add new techniques
• Your calendar is consistently full

Small, regular increases are far easier for clients to accept than big reactive jumps.

The Reset Question to Ask Yourself

As you close this business reset, ask yourself:

“If I continue pricing exactly as I am now, will my business support the life I want in 12 months?”

If the answer is no, pricing is where the change starts.

Final Thoughts

Your skills deserve structure.
Your time deserves respect.
Your business deserves profit.

Pricing is not about charging more for the sake of it — it’s about building something sustainable, professional, and future-proof.

This is how you stop guessing — and start running a real business.