How to Stop Competing on Price: Premium Positioning for Beauty Businesses

If you have ever felt pressured to match a competitor's prices or run a Groupon deal, you are not alone. But the most successful salons are rarely the cheapest.

Why Discounting Destroys Your Business

Say your service costs 50 pounds with 30 pounds in costs. That is 20 pounds profit. Offer 20% off and your profit drops to 10 pounds - a 50% reduction for a 20% discount.

Discount clients tend to book once and never return, spend less on add-ons, and be more demanding.

Strategy 1: Specialise

Generalists compete on price. Specialists command premiums. Become known for something specific:

• "The balayage specialists"
• "Manchester's only Japanese straightening experts"
• "Award-winning bridal hair and makeup"

Strategy 2: Elevate the Experience

Small touches that cost little but justify higher pricing:

• Genuine consultations at every visit
• Complimentary proper coffee
• Instagram-worthy environment
• Personalised aftercare advice
• Follow-up messages checking satisfaction

Strategy 3: Build Your Online Reputation

When potential clients see 200+ five-star reviews and stunning portfolios, price becomes secondary. Your review system, Instagram strategy, and before-and-after content work together to justify pricing.

Strategy 4: Packages and Memberships

• Treatment packages: bundled services at a slight saving
• Monthly memberships: predictable recurring revenue
• Loyalty programmes: reward with perks, not discounts

Strategy 5: Communicate Your Value

• Talk about products you use and why
• Share team qualifications and training
• Explain your process
• Show results through your before-and-after portfolio

Making the Shift

You might lose price-sensitive clients short term. But you will replace them with clients who value quality, rebook consistently, and refer others. Better for revenue, team morale, and sustainability.

Pricing strategy is part of your overall approach. Read our complete marketing guide for beauty salons.