Why is it Important to Calculate your Cost Per Service as a nail professional?

When providing nail services, running a successful business goes beyond just artistic talent and creative flair. For nail professionals, understanding the financial side of your services is crucial for building a sustainable and profitable business! 

One key aspect of financial management is calculating your various costs per service. In this blog, we're sharing our top tips for why it's important to accurately determine your cost per service and how it can contribute to your success as a nail pro.

1. Establishing Pricing

Calculating your cost per service provides you as the nail professional with a clear understanding of the product expenses associated with each treatment. By factoring in the cost of products, tools, overhead expenses, and time, you can determine a fair and competitive price for your services. Without this knowledge, setting prices may lead to undercharging, undervaluing their skills, or worse, operating at a loss.

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   Check out the Cost Per Service for the Light Elegance Lexy Line Gels here (full set): 

Check out the Cost Per Service for JimmyGel here (full set):

2. Profitability Assessment

Knowing the cost per service (including products and all other running costs) is essential for assessing the profitability of individual nail services. By comparing the cost per service to the price charged, you can identify the profit you are making on each service. This information helps you make informed decisions about which services are most financially rewarding and which may require adjustments to increase profitability.

*Pro Tip: Filling your builder gel each service can save you not only time, but money per service! Instead of soaking off each JimmyGel set, try filling your JimmyGel clients to save product and time which means more money in your pocket! Remember to use Tack as your bonding agent before JimmyGel for longer wear.

Check out the Cost Per Infill Service for Lexy Line hard building gels:

Check out the Cost Per Infill Service for JimmyGel soak off builder gel in a bottle:

3. Budgeting and Financial Planning
Understanding the cost per service (including all overheads and expenses) enables you to create accurate budgets and develop effective financial plans for your business. By knowing how much each treatment costs, you can calculate your monthly expenses, plan for any upcoming investments, and set realistic targets for your turnover and income. This information empowers you to make sound financial decisions and ensure long-term sustainability! 

4. Spending Wisely
Accurate cost calculations aid in effective spending on your business. You can evaluate the usage of product, tools, and equipment per service and identify any areas where wastage or over spending occurs. With this knowledge, you can optimise their income, minimise unnecessary expenses, and ensure the efficient use of your product stock. This practice contributes to reducing costs and improving overall profitability!

Remember that buying in bulk or purchasing refills can also save you money per service! The cost per service for a 120 ml Lexy Line Refill for a rebalance service is only £0.50, compared to a 10ml which costs £1.40 per rebalance service.

5. Pricing competitively

By understanding the financial aspects of your business, you can compare your pricing with competitors, and identify opportunities to differentiate your services based on quality, customer experience, or additional value-added offerings that you offer which others don't or that you offer at a higher standard.

This is when product consistency and performance can make all of the difference. Choosing to work with a product like Light Elegance that is high-quality, helps you work efficiently and provides lasting results can set you apart from the competition!  

While artistic talent and skill are vital for nail professionals, understanding the financial aspects of your business is equally important!

Calculating the cost per service provides a comprehensive view of the expenses associated with each nail service and allows you to make informed decisions about pricing, profitability, spending, and budgeting. By mastering this aspect of your business, you can achieve financial success, build a sustainable business, and thrive as a nail professional!