Determining Your Pricing and Tailoring Your Insurance | Shelia Abrahams

May 24, 2024

FHA Founder, SHEILA ABRAHAMS MBE, emphasises the importance of determining your pricing and tailoring your insurance.

Pricing and insurance considerations are vital aspects of running a successful freelance hairdressing business. Everywhere you look, from social media to magazines, the heat is on for ‘working smarter not harder.’ Ensuring adequate insurance coverage can be daunting, but with careful planning and guidance, freelance hairdressers can navigate these challenges effectively.

Setting prices:
Determining your pricing structure is a crucial step that reflects your skills, expertise and business needs. While it can be tempting to compare prices with competitors, setting rates based on your unique value proposition is essential. The Freelance Hairdressers Association (FHA) recommends a minimum hourly rate of £25. However, it’s important to also include additional factors such as product costs and overhead expenses.

For instance, when pricing services like a cut and blow-dry, it’s essential to factor in the time taken, the cost of products used AND the running costs of the business. A basic guideline on a cut and blow-dry suggests adding a minimum of £8 to cover product expenses. Similarly, for colour services, pricing should also reflect the time invested and the product costs involved – this will ensure that your hourly rate remains competitive while covering all expenses.

Regular training and skill enhancement should also be reflected in your pricing structure. Ultimately, clients value expertise, so adjusting prices to reflect your evolving skills can help you stay competitive in the market.

The FHA can help streamline the process of determining costs with our cost and profit calculator. This will ensure that your pricing remains fair and sustainable. Overall, the main thing to consider is setting a price list that’s relevant to you and your business.

Taking deposits:
In today’s dynamic business landscape, the option of taking deposits from clients for appointments is gaining traction among professional hairdressers, with the unfortunate reality of clients occasionally cancelling or failing to show up taking a huge toll on our industry each year. Taking deposits can help mitigate potential losses and protect the valuable time and resources invested in preparing for appointments. However, it’s crucial for hairdressers to communicate clearly with their clients regarding this policy. Establishing clear rules and regulations – either via your website, booking system, email or text message – is increasingly important for maintaining transparency and professionalism in client interactions.

Insurance coverage:
Insurance is a non-negotiable aspect of any freelance hairdressing business. Protecting yourself, your clients and your business assets is paramount in today’s dynamic market. The FHA offers specialised insurance policies tailored to the needs of freelance hairdressers, covering various workspaces and including essential features like skin testing. Understanding the nuances of insurance coverage is critical. Public liability insurance and treatment risk coverage are essential components that protect you in various scenarios. Third-party insurance alone may not provide adequate coverage, particularly concerning treatment risks specific to hairdressing services.

Choosing an insurer who understands the intricacies of your profession is vital. A comprehensive insurance policy not only safeguards your business but also ensures compliance with industry standards, such as manufacturer’s instructions for skin testing.

Incorporating insurance costs into your pricing structure is essential for maintaining financial stability and peace of mind. By investing in robust insurance coverage, freelance hairdressers can mitigate risks and focus on delivering exceptional services to their clients.

Pricing and insurance are integral aspects of running a successful freelance hairdressing business. By establishing fair pricing structures and securing comprehensive insurance coverage, hairdressers can build a strong foundation for long-term success in the industry. The guidance and support provided by organisations like the FHA play a vital role in helping freelance hairdressers navigate these complexities with confidence and professionalism.

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