How much should I charge for beauty treatments?

Savvy_Sue

One thing to consider is the business side of running a business from your home.

1. Are you a tenant? If so, you need to check your tenancy agreement, you may need your landlord's permission to do this.

2. Are you a home owner? If you, you need to check whether your mortgage lender needs to know about this.

3. Is your home insured? If so, your insurer needs to know (and you will probably NOT be covered for any thefts without forced entry.)

4. You probably know you need to register as self-employed with HMRC. If you have a room exclusively set aside for your business, then you can claim part of your utility bills as expenses, BUT if you have a room exclusively set aside for your business you MAY be liable to Capital Gains Tax when you sell your home.

5. There MAY be an issue with your local council wanting to charge business rates on part of your property, and certainly if there are any parking 'issues' in your area there may be complaints if you attract a lot of business.

It would be worth checking out the Small Biz board for the answer to questions like this, and since I think the advice you've had about checking local prices is probably the best you'll get, I shall move you over there now.

MOVING THREADS FOR BETTER RESPONSES

Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere (please see this rule) so this post/thread has been moved to the Small Biz board, where it should get more replies. If you have any questions about this policy please email [EMAIL="abuse@moneysavingexpert.com"]abuse@moneysavingexpert.com[/EMAIL].

My own helpful tip about people accompanying clients to your home is to identify local cafes where they could wait. DH and I used to go to someone's home for massage (one after the other) and it was absolutely lovely: he would drop me off then go home for 45 minutes work, then I'd ring when I was done and he'd drive over for his appointment while I wandered off to scour the nearby charity shops and have a coffee.

Then she moved her work into a nearby GP surgery. It's no longer within walking distance of the charity shops (and the ambience isn't quite so nice). But on our last visit I discovered a cafe in the local community centre, and now we drive over together, and one of us waits there for the other.

so, if you let your clients know that there's nowhere for their drivers to wait, BUT there's a good cafe within five minutes, that might pre-empt any problems.

LittleTinker

A lot of people will avoid private homes because of the lack of insurance. I know some of you said you would go to private homes but what assurance do you have that they are properly covered for all liabilities?

And how comfortable would a lot a women be in private homes if they are getting undressed?

You never know who else is in the house.

lessonlearned

Thanks Little Tinker for your comments. The issues you raise are interesting and they do help me to plan around any problems that might arise.

Re the Insurance - I will have my insurance certificate on display, along with my qualifications certificates, just as any high street salon would be expected to do. I think that would reassure my clients.

As regards changing, should my clients need to remove clothing, they will have access to a bathroom which has a lock, they will then be given robes to change into, again just as in any other spa or salon.

A big thank you for all those posters who raised issues of my own personal safety. I am a trusting person and I have to confess that I hadn't given much thought to that aspect. Does anyone one know if I am able to advertise as a "Ladies Only" service?. Would I be contravening any legislation designed to overcome sexism?

The waiting room scenario is one I will have to think about. I do have a lovely sitting room but as you say, it wouldn't be an ideal situation. There is a local cafe (and a few pubs!!) I will take a look at the cafe and see what hours they are open.

Anyway, thanks again for all your replies - they really are very very helpful..

martindow

I would contact Business Link who will give you lots of valuable free advice on practical matters of setting up a business.

Pricing is a strange thing. If you try to undercut other people you can raise suspicions in prospective clients that you might not be any good or unqualified. Very expensive prices will put most people off but some will be attracted on the basis that you must be extra special to justify the rates that you are asking.

Make sure that you keep receipts for all of the little things that you spend money on, mileage incurred and possibly a proportion of household expenses. These add up and you want to set off as many legitimate expenses as you can against your takings to minimise the tax payable. May be worth speaking to an accountant. Many offer an initial free half hour.

Good luck and I hope that it goes well.

LittleTinker

Would it be better for you to rent a room in an existing salon?

melancholly

http://www.fsb.org.uk/default.aspx?loc=general&id=0

i don't really know the remit of the federation of small businesses, but remembered i know someone else who is/was a member (can't remember if they still are!), so they may be worth a look.

i know plenty of people who go to private homes for music lessons, sewing lessons, language practice etc etc etc, so remember how many successful businesses are run from homes and don't be too put off by people saying they wouldn't go to a home based business as there are clearly a lot of people who are happy to!

lessonlearned

Thanks for the vote of confidence Melancholly and, indeed, to all the other posters who have been so positive about my plans for my proposed home based therapy business, and a big thank you for all your helpful and considered advice.

Little Tinker, it would appear that you have some issues regarding a therapy business based from a private dwelling. Whilst I respect your views, I have decided to press ahead with my plans regardless. And no, I would not even consider the idea of renting a room in someone else's salon. Were I to do so, I would have no control over my own business, which would wholly defeat my objectives. :rolleyes:

I intend to build a business which will be based on my personal reputation for the highest professional standards and conduct and straightforward and honest business dealings.

I do sincerely hope, Little Tinker, that your objections are not based on a bad personal experience.

It occurs to me that there are all sorts of situations where we, as consumers, are at the mercy of others, often when we are at our most vulnerable. Doctors examine us: nurses, dentists, physios, psychiatrists, etc and yes, even ambulance personnel (as per yesterday's news), are in a position to misuse their power over us. All we can do in such situations is trust that we are in safe and trustworthy hands.

Sadly, yes there are rogues and villains in all professions and in all walks of life. We have to take what precautions we can to protect our own interests and then simply have a little faith in our fellow beings. Maybe I've just been very fortunate but so far my trust has never been betrayed and I have received nothing but kindness and fair dealing from everyone I have met.

There will be those, who through misfortune and bitter experience, will perhaps feel rather differently, but I'm sure that the good people far outnumber the bad and the world is still full of nice, decent people who just want to make an honest living. Whether they work from home or from high-end, luxury high street premises is surely irrelevant.

Savvy_Sue

LittleTinker wrote: »

A lot of people will avoid private homes because of the lack of insurance. I know some of you said you would go to private homes but what assurance do you have that they are properly covered for all liabilities?

And how comfortable would a lot a women be in private homes if they are getting undressed?

You never know who else is in the house.

I have to say I used to feel a LOT more comfortable in my therapist's home than I do in the surgery! Who knows WHO is walking up and down the corridor! :rotfl:

Pennywise

I'd say you should charge the same, or just very slightly less than your local competition.

Don't go too cheap - not only do you risk your professional image, you are also tieing yourself down for the future - if your business grows, you will need proper premises but your regular customers will be used to low prices and you may lose a lot of regulars at the exact time you need them the most.

You should price according to where you want your business to be in 3-5 years, not according to its low costs today. Even though you aren't incurring them, you need to factor in your future costs, such as room hire, advertising, VAT (if your turnover is likely to rise to the VAT thresholds in 3-5 years), accountancy fees, legal fees, professional subscriptions, etc etc.

Concentrate on other unique selling points where you can out perform your competition, such as more flexible hours, emphasis on personal attention (not the latest trainee from a larger firm etc), any specialisms you have that your competition don't offer or don't advertise.

It is a myth that everyone is price conscious - lots of my "one man band" clients charge far more than the High Street competition - people WILL pay for a premium service. It is better to have just two customers who you charge £75 per hour than having three customers who you charge £50 per hour.

I know it is very tempting to undercharge and be too-flexible just to get your first few customers, but it restricts you in the long term when you're bogged down with too many low paying customers.

lessonlearned

Thanks very much Pennywise - food for thought there.

I must say that I blanch sometimes at the prices quoted in newspapers and magazines for the latest fashionable salon or spa. (We're often talking three figures here for a fairly basic facial).

My OH once booked me some time in a very smart salon in a beautiful country hotel as a special treat. The prices were astronomical. I didn't have the heart to tell him that the therapist wasn't very good. She wasn't a trainee, just rather poor. I didn't let on to her that I too was a therapist. When I asked for advice on skincare etc she was unbelievably ignorant. Most of her advice was laughable, especially the "cod-science" she was spouting. Her hygiene practices also left a lot to be desired. Like many therapists her real interest was in pushing the products the salon was selling so she could earn extra commission. I'm not knocking her for that, but still, she should have been better at her job.

Without wishing to sound arrogant I know that I know my stuff - it's just that I can't offer the same "glamour & glitz" as the trendy, ritzy salons. That's why I've been so uncertain about how much to charge. However, I think I will heed your wise words, Pennywise, and not go too cheap. Fewer appointments will mean that I can really concentrate on offering a premium service and still make enough money. Hopefully, my clients will recognize this. As you so rightly put it, I want to be in business in five years time, not just for a few months.

I have decided to visit a few local salons to "suss out the competion". I'm also going to book in for some seminars at the next industry event at the NEC to bring myself up to speed with the latest industry news and developments.

I am so looking forward to getting cracking now. I'm aiming to be up and running properly by about May.