No More Free Rides: Lessons From Uber & Netflix

Running a salon is more than just delivering amazing hair services, it’s about running a profitable business. One lesson many salon owners overlook? You can’t keep giving “free rides” to clients by undercharging for your services.

Big companies like Netflix and Uber teach us important lessons about pricing, value, and revenue streams, this is how these lessons can apply directly to salons.

Pricing Isn’t Just About Numbers

As a salon owner, you’re constantly balancing two things: keeping customers happy and making enough profit to run a sustainable business. Clients want clarity, not complicated pricing structures.

For example, if your service menu doesn’t clearly communicate pricing, new clients might book the wrong service or experience sticker shock. A simple consultation, paid or free, can solve this problem and set the stage for a great client experience.

Lessons from Netflix and Uber

Consider Netflix: once a platform known for no commercials, it eventually added ads while continuing to provide value. Consumers stayed because the content they loved was still accessible. 

Similarly, Uber started as a simple, all-inclusive ride. Today, tipping adds another revenue stream, but the service remains valuable enough that customers continue to use it.

The takeaway? If you provide consistent value, your customers will stick around even when you adjust pricing or add new revenue streams.

Taking the CEO Seat

Salon owners need to step into a CEO mindset:

• Cover your product costs fully (think parts + labor pricing).
• Make calculated pricing changes to maintain cash flow and profitability.
• Treat new and loyal clients differently, maximize value without compromising loyalty.

Ask yourself: If I were investing in my salon, would I be happy with the return? Then act on that, without letting emotion dictate pricing decisions.

Stop Working for Free

Many salon owners unintentionally undercharge or absorb product costs, effectively working for free. Switching to parts + labor pricing ensures product costs are always covered. This not only boosts cash flow but also gives you the freedom to invest in education, experience, and growth.

Here’s where SalonScale comes in. SalonScale helps you:

• Track each service’s profitability in real time.
• See exactly how much your products and labor cost per service.
• Make data-driven pricing decisions confidently.
• Identify where you’re losing money and fix it fast.

By using SalonScale, you can ensure no service is underpriced, and every client contributes to a profitable, sustainable business.

Key Takeaways

1. Clarity matters more than method. Customers care about knowing what they’ll pay, not how you calculate it.
   
2. Value retention beats fear. Even if you raise prices, consistent value keeps clients loyal.
   
3. Step into your CEO role. Make pricing decisions for the health of the business, not based on emotion.
   
4. Cover your costs. Parts + labor pricing ensures you never give away your product for free.
   
5. Leverage tools like SalonScale. Track profitability, make smarter pricing decisions, and grow your salon confidently.
   
   

Running a profitable salon isn’t about being the cheapest, it’s about delivering value while making sure your business thrives. Take a page from Netflix and Uber: create value, communicate it clearly, and don’t be afraid to earn what you’re worth.

Let’s talk about getting you started, book your free 30 minute demo call!