Summarize this article in one sentence.
Base your prices on your overhead costs, what your competitors charge, and on your location's median income level. Add up your operating expenses (including products, equipment, mortgage or rent, and utilities), taxes, costs to maintain permits and licenses, and any outstanding loans. Figure out how much money you need to make to cover these costs and maintain a profit margin of at least 10 to 20 percent. For example, if you want to make $52,000 per year to maintain a 15 percent profit margin, you need to make $1,000 per week. If $80 for a women's cut and $40 for a men's cut are reasonable prices in your area, you'll need to book enough appointments at these rates to meet your weekly quota. While reasonable prices and discounts can build your client base, you need to charge enough to cover your overhead and generate profit. If you undersell your services or offer too many discounts, your profits could take a hit. At a minimum, your services should include cuts, washes, and styling. High end services, such as a $200 precisely sculptured cut, work well in wealthy areas. However, you might want to focus on inexpensive basic cuts in less affluent locations. You might focus on cutting and styling a particular gender or hair type. Factor in your local customers' needs and, if necessary, broaden your skills so you can build a larger customer base. Hair coloring and extensions can add variety and help you book more appointments. You'll need to maintain an inventory of all necessary materials, which you can purchase at beauty supply stores. Keep in mind that your local jurisdiction might regulate the use of chemicals or require additional permits. For instance, in the UK, hairdressers must administer a patch allergy test before coloring a client's hair. Additional services allow clients to patronize your business in between cuts, giving you more opportunities to make money. If necessary, invest in a class to develop these skills yourself or hire staff to help you provide these services. You may start with basic services first, then see if adding other services like facials, make up, and waxing make sense for your home business. They may be good options if you are not getting as many hair clients as you'd like or if you'd like to try out different skills on your clients. Retail is a quick and easy way to generate revenue. A business license allows you to purchase products from wholesalers, which you can then sell at a marked up price. Most retailers use a 50 percent markup. If you purchased a product wholesale at $7, sell it for $14.
Price your services competitively. Offer basic services that target your local market. Include coloring and extensions to broaden your clientele. Offer additional services, such as facials, make up styling, and hair removal. Display and sell retail products.