How To Make Your Freelance Price List Profitable

One of the biggest mistakes you can make when starting your freelance journey is taking the prices from the salon you've left and immediately reducing them. It can feel like the easiest option, especially if you're concerned about whether clients will follow you, but making pricing decisions before you've looked at your numbers is essentially guesswork.

Imagine reducing your prices by $20 per appointment when you first go freelance.

If you're seeing 20 clients a week, that's $400 less revenue every week or more than $20,000 over the course of a year.

That's a significant decision to make before you've looked at your expenses, income goals or profitability.

There is no right or wrong price point. What matters is whether the numbers stack up.

The reality is that when you start freelancing, you're taking on expenses that were previously covered by your employer. Before making any decisions about your pricing, take the time to understand what your business needs to earn each month.

Start With Your Expenses

The first place to start isn't your service menu. It's your expenses.

Before reviewing your prices, make sure you understand what it costs to run your business each month.

This might include:

• Chair rental

• Stock and colour

• Software subscriptions

• Tax and superannuation

Once you know your numbers, you can begin working backwards and calculate what your business actually needs to earn.

Decide What You Want To Earn

Whether your goal is more flexibility, replacing your previous salon income or increasing your earning potential, your pricing needs to support it.

Instead of asking, "What should I charge?" start asking, "What does my business need to earn?"

That simple step changes everything.

The Power Of A Price Review

As your skills, experience and business evolve, your pricing should evolve with it.

If you're seeing 15 colour clients per week, a $10 increase per appointment creates an additional $7,800 in annual revenue before you've taken on a single new client.

Considered changes can have a significant impact over time.

If you're not sure where to start, the Rooted Price Rise Calculator can help you review your current pricing, understand the impact of price increases and make informed decisions based on your numbers.

Your price list should be built around facts, figures and informed decisions, even if some of those numbers are projections when you're first starting out. Having that clarity allows you to build a business that can grow sustainably while supporting the lifestyle you're working so hard to create.

Ready to review your pricing? Download the Rooted Price Rise Calculator and discover what even a few adjustments could mean for your business. https://www.carlarinaldi.com/rooty