Skin therapist and salon owner, Kristy Hines recently implemented tiered pricing for beauty services. Almost 12 months on, the outcome is a positive one. Reports Ashleigh Sharman.

Kristy Hines
Kristy Hines

Introduced in October 2012, tiered pricing for beauty therapist treatments has been up and running at Mineral Lifestyle Hair Day Spa close on a year. Co-owner and director, Kristy Hines always wondered why this system, the norm in the hair industry, was not adopted by its beauty counterpart and set about change.

“As a business we already offer our team commission on product and as a small business I have a set amount of leverage in salaries I can offer if my services are at a set price. We found that talented therapists with high guest retention were asking for salary increases and we had no room to move! During my career in the industry I’ve known many therapist that have felt they were never able to earn the money they could in other industries, hence they were leaving to follow new career paths — yet sad to be leaving the beauty industry,” explains Hines.

“In August 2012 we expanded to become a hair spa alongside our day spa. Being exposed to tiered service pricing to allow for different levels of experience, different salaries reflective of experience and retention of guests, got us thinking “why is the beauty industry not doing this?” This revelation, combined with some inspiration from a business seminar at Hair Expo last year about saying ‘yes’ to your guests, just at a price, gave us the motivation to implement this new approach.”

Requiring development and education within the team, Hines says the concept was challenging for some therapists however those who looked for a sustainable financial career in the industry were excited by it.

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“It took a transitional period, just like when we increase our prices in general, but we looked again to the hair industry in how they educate their guests about stylists or colourists going up a tier in pricing. We were surprised at how open and understanding clients were — I think we underestimated how adjusted they already were about tiered pricing for services,” Hines says.

Citing the main benefit of tiered pricing for services as retention and satisfaction of staff, Mineral Lifestyle Hair Day Spa is confident it will help grow and sustain clients — both factors assisting the overall financial sustainability of the business.

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“Tiered pricing has also allowed me as a business owner to be open to performing treatments again with a new enthusiasm! It also delivers clear structure to staff for what performance is required to earn a pay rise, giving them a clear career path and a financial reward for getting there. I would encourage all spa and beauty businesses to look at this model. This not only values our education, experience and skills but helps us to elevate our industry.”

Kristy Hines is co-owner and director of Mineral Lifestyle Hair Day Spa, call (02) 9360 7311 or visit www.minerallifestyle.com.au.