Design a Service Menu and Pricing That Supports Profit

Price for Profit (Not for “What Others Charge”)

A profitable service menu does two jobs at once: it helps clients choose quickly and it protects your time and income. Pricing “to match the salon down the street” often leads to undercharging because your speed, product quality, rent, and schedule are different. Instead, build prices from your numbers: time per service, product cost, overhead, and the hourly rate you need.

The Profit Formula (Use This for Every Service)

Start with a simple structure you can repeat:

Service Price = Labor + Product Cost + Overhead Allocation + Profit Buffer

• Labor = (Service time in hours) × (Desired hourly rate)
• Product Cost = disposable + consumable cost per service (not retail price of a bottle)
• Overhead Allocation = a per-hour overhead rate × service time
• Profit Buffer = 5–15% to cover waste, no-shows, extra cleanup, small delays

Step 1: Calculate Your Real Service Time

Time is your main inventory. Price must reflect the full time you spend, not just “hands-on” minutes.

Track the Full Appointment Block

For each service, measure:

• Client time: consult, service, checkout, rebooking
• Turnover time: sanitize, reset station, laundry, tool prep
• Admin time (if it happens inside the block): photo, notes, payment issues

Example: A “60-minute gel manicure” might be 70 minutes total when you include 10 minutes of cleanup and checkout. Price the 70-minute block.

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Quick Timing Method

• Time your next 10 appointments of the same service.
• Use the average as your standard block time.
• Round up to the nearest 5–10 minutes to protect your schedule.

Step 2: Calculate Product Cost Per Service

Product cost is often underestimated because bottles last a long time. You only need a practical estimate that is consistent.

What to Include

• Files, buffers, wipes, gloves, masks
• Sanitation supplies
• Base/top coat, color, builder/gel, acrylic/liquid, remover
• Tips/forms, adhesive, nail art materials used
• Single-use pedicure liners, toe separators, pumice (if disposable)

Simple Costing Shortcut

If you don’t want to calculate per milliliter, use a “service kit” estimate:

• Manicure services: $2–$6 product cost (depending on brand and disposables)
• Pedicure services: $4–$10 product cost (liners, exfoliants, creams)
• Enhancements / extensions: $3–$12 product cost (forms/tips, builder, bits wear)

Then refine over time by tracking what you reorder most.

Step 3: Build Your Overhead Rate (Per Hour)

Overhead is everything you pay to operate whether you have clients or not.

Common Overhead Items

• Rent/booth rent, utilities, internet
• Insurance, licensing, accounting
• Booking software, card processing fees
• Marketing spend, website
• Laundry, cleaning service
• Equipment maintenance and replacement

Calculate a Usable Overhead Number

Use a monthly estimate and divide by your billable hours.

Overhead per Hour = Monthly Overhead ÷ Monthly Billable Hours

Example: Monthly overhead = $1,800. You can realistically book 90 billable hours/month. Overhead per hour = $20/hour.

Now you can allocate overhead to each service by multiplying overhead per hour by service time.

Step 4: Choose a Desired Hourly Rate (Labor)

Your hourly rate is not “what you take home.” It must cover your pay plus taxes, unpaid time, and growth.

How to Set It Without Guessing

• Decide your monthly personal pay goal (before taxes).
• Add a cushion for unbooked time and admin time.
• Divide by realistic billable hours.

Desired Hourly Rate = (Monthly Pay Goal + Cushion) ÷ Monthly Billable Hours

Reality check: If you want $4,000/month and you can book 80 hours/month, your labor rate must average $50/hour (before adding product and overhead).

Step 5: Price a Service Using the Full Formula (Worked Example)

Let’s price a gel manicure.

• Total block time: 70 minutes = 1.17 hours
• Desired hourly rate (labor): $50/hour
• Overhead per hour: $20/hour
• Product cost estimate: $4
• Profit buffer: 10%

Labor = 1.17 × $50 = $58.50  (round to $59)  Overhead = 1.17 × $20 = $23.40  Product = $4.00  Subtotal = $86.40  Buffer (10%) = $8.64  Price = $95.04 → $95

If that price feels “high,” don’t immediately lower it. First check: are you underestimating your billable hours, undercharging your time, or offering too much inside the service?

Create a Tiered Menu (Basic, Standard, Premium)

Tiers make your menu easier to understand and reduce price resistance by giving clients a choice. Each tier should have a clear difference in time, results, and included steps.

How to Design Tiers

• Basic: maintenance-focused, shortest time, limited options
• Standard: your most popular, best value, balanced time/results
• Premium: longer wear, more detail, luxury elements, or advanced correction

Example Tier Structure (Manicure)

Rule: Your Standard tier should be the easiest “yes.” Price it so it’s profitable and positioned as your signature option.

Add-Ons: Increase Ticket Size Without Extending Every Appointment

Add-ons work when they are optional, clearly timed, and priced to protect your schedule. Each add-on should have its own time block and cost.

High-Value Add-Ons for Nail Pros

• Nail art (simple, detailed, custom)
• Repairs (per nail)
• Paraffin treatment
• Callus care (pedicure upgrade)
• French / ombré
• Chrome / cat-eye / specialty effects

Price Add-Ons Like Mini-Services

Use the same formula, but keep it simple:

Add-on Price = (Add-on minutes ÷ 60 × (Hourly Rate + Overhead per Hour)) + Product + Buffer

Example: 15-minute paraffin add-on. Hourly rate $50, overhead $20 → $70/hour combined. 0.25 × $70 = $17.50 + product $2 + buffer ≈ $22 → price $22–$25.

Make Nail Art Profitable (Without Confusing Clients)

Instead of endless “$1 per dot” pricing, offer art tiers:

• Art: Simple (10 min): dots, hearts, 1–2 accent nails
• Art: Detailed (20–30 min): hand-painted, layered effects
• Art: Custom Set (45–60 min): multiple techniques, complex designs

Attach a time block to each tier so you can schedule correctly.

Naming Services So Clients Understand (and Choose Faster)

Service names should be clear, consistent, and outcome-based. Avoid insider terms unless you explain them.

Naming Formula

[Result] + [Method] + (Optional: [Wear/Benefit])

• Result: “Long-Wear,” “Strength,” “Smooth Heels,” “Natural Look”
• Method: “Gel Manicure,” “Builder Overlay,” “Dry Pedicure”
• Benefit: “Up to 3 Weeks,” “Chip-Resistant,” “Callus Focus”

Examples:

• “Long-Wear Gel Manicure”
• “Strength Builder Overlay (Natural Nails)”
• “Smooth-Heel Pedicure + Callus Care”

Write Benefit-Focused Descriptions (Not a List of Steps)

Clients buy outcomes: durability, neat cuticles, comfort, appearance, and time saved. You can still mention key inclusions, but lead with the benefit.

Description Template

1) Who it’s for  2) The result they’ll notice  3) What’s included  4) Timing/maintenance note

Example (Standard):

Long-Wear Gel Manicure — For clients who want glossy, chip-resistant nails that stay polished through a busy week. Includes detailed cuticle work, shaping, gel color, and a high-shine finish. Best maintained every 2–3 weeks.

Example (Premium):

Strength Builder Overlay — For thin, bendy, or breaking nails that need reinforcement. Includes structured builder application for added strength and a smooth apex, finished with gel color or a clean nude. Recommended maintenance every 3–4 weeks.

Set Boundaries That Protect Profit (Policies That Match Your Menu)

Boundaries prevent “hidden free labor.” Put policies on your booking page and repeat them in confirmation messages.

Late Policy (Protect Your Schedule)

• Define a grace period (example: 5–10 minutes).
• After that, choose one: shorten service, convert to a simpler tier, or reschedule.
• State any fee clearly.

Sample wording: If you arrive more than 10 minutes late, your service may be adjusted to fit the remaining time or rescheduled. Late arrivals may require a rebooking fee.

Repair Policy (Stop Free Fixes From Eating Your Week)

• Offer a short complimentary window only if it’s your work and within normal wear expectations.
• After the window, charge per nail or per fix.
• Clarify exclusions (accidental trauma, picking, using nails as tools).

Sample wording: Repairs within 3 days are complimentary for lifting or chipping under normal wear. After 3 days, repairs are $X per nail. Breaks due to impact are charged at the repair rate.

Design Change Policy (Nail Art and “Can We Add This?”)

Prevent last-minute add-ons from pushing you behind:

• Require art selection at booking (choose an art tier).
• State that same-day upgrades depend on time availability.

Sample wording: Please select nail art add-ons when booking. Same-day design changes are accommodated only if time allows and may require rescheduling.

Common Undercharging Traps (and How to Fix Them)

• Including removal for free in every service: make it an add-on or include only “my work removal” with clear limits.
• Not charging for extra length/thickness: add a length tier or “extra product/time” add-on.
• Pricing by “set” but doing custom work: create a premium tier for structured work and a separate art tier.
• Not pricing turnover time: build it into the block time.
• Discounting your best work: keep discounts rare and strategic; don’t discount premium tiers that require skill and time.

Step-by-Step Service Menu Rebuild Template

Use this template to rebuild your menu in one focused session. Work service by service.

1) List Your Core Categories

• Manicure
• Pedicure
• Enhancements/Extensions
• Maintenance/Refills (if offered)
• Removal
• Add-ons

2) For Each Service, Fill This Pricing Block

3) Build Tiers With Clear Differences

• Write 1 sentence per tier: “This is for clients who want ___.”
• Define what changes between tiers: time, durability, correction, luxury elements.
• Ensure each tier is profitable on its own (don’t rely on add-ons to make it work).

4) Create Add-Ons With Time Blocks

For each add-on, define:

• Time: 10/15/30/45 minutes
• Price: calculated and rounded
• Where it fits: manicure, pedicure, or both

5) Write Descriptions Using the Benefit Template

• Lead with outcome (wear, strength, comfort, appearance).
• Keep it scannable: 2–3 sentences max.
• Add a maintenance note (how often to return).

6) Attach Policies to the Menu (Not Hidden Elsewhere)

• Late policy
• Repair policy
• Removal policy (my work vs other work)
• Nail art booking policy

Mini-Audit Checklist: Remove, Raise, or Repackage Low-Profit Services

Run this audit on every service you currently offer.

• Time check: Does the service regularly run over its booked time? If yes, increase time block and price or simplify what’s included.
• Margin check: After product + overhead, are you earning your desired hourly rate? If no, raise price or reduce steps.
• Demand check: Is it booked at least 2–4 times per month? If no, consider removing it or making it seasonal/limited.
• Stress check: Does it create frequent fixes, complaints, or re-dos? If yes, repackage into a premium tier with stricter expectations or discontinue.
• Upsell check: Does it naturally lead to profitable add-ons? If no, rewrite the description and booking flow to present add-ons clearly.
• Opportunity cost: Could that time slot be replaced by a higher-profit service you already do well? If yes, reduce availability or raise price until it earns its spot.

Practical Repackaging Moves (When a Service Isn’t Profitable)

Option A: Turn It Into a Tier Upgrade

If clients love a feature that costs you time (extra massage, detailed cuticles, hot towel), move it from Standard into Premium and price accordingly.

Option B: Convert “Free Extras” Into Add-Ons

• Removal
• French finish
• Chrome/special effects
• Repairs

Make them selectable at booking with clear time and price.

Option C: Create a “Correction” Service

If you often fix work from other places (or severe issues), create a separate service with a longer block and higher price. This prevents a standard appointment from turning into unpaid correction time.

Option D: Raise Price and Reduce Complexity

If a service is popular but draining, simplify the included steps and keep the result consistent. Clients usually prefer reliability over “extras.”