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How to Charge What You are Worth
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Reprinted with permission from Pet Age-9/2006
How to Get What You’re Worth Too many groomers undercharge for their services. Take these practical steps and start getting the money you deserve. By Daryl Conner A highly contagious disease is spreading throughout the grooming industry. It’s the “undercharging for services” plague—and it has some nasty side effects: overworked groomers, poorly groomed pets and inefficient, ill-equipped shops. Beyond these are even more insidious side effects, such as groomers working and living without proper insurance and health care, and the very high number of burned-out groomers who either suffer working in that unhappy state or leave our industry altogether. All this because many of us are afraid to charge what we are worth. It seems that the problem here is double-edged. Many of us do not recognize our worth or the value of the services we offer. Still others do realize the worth of the work we do, but lack the business sense to formulate a plan that will allow us to bring home a profit at the end of a long, hairy day. So the question is: How do we come to understand our value in the marketplace—and how do we charge appropriately for it? Stop Giving Your Services Away I started out by asking my brother, Dana Waters. He is not a groomer, but he is a very successful businessman who has given me a boatload of excellent business and financial advice ever since he helped me set up my first business when I was 6 years old, selling earthworms to his fishing buddies. He said we all have a tendency to give our services away, thinking we are making friends for life. “What it boils down to is that you only have so many hours in a day, and you can only get so much for your skills. You need to make a decision who you are going to have benefit from your work. Are you going to benefit yourself, your family and your pets, or the customer? You won’t make friends or earn respect by charging less that what you are worth. Don’t buy your friends. Be a good human and get all the free ones you want!” Dana’s words reminded me of how many groomers have told me they felt cheated because they charged a client less than they should have to groom a pet, and the client did not show any gratitude or even leave a tip. In most instances, these groomers were acting out of compassion, undercharging to demat some wooly unkempt beast because they didn’t want to shock the customer by billing them what the time was really worth. The end result was not only lost income, but also a buildup of bad feelings on the groomer’s part. On the positive side, actions such as these reflect what a kind and compassionate group we groomers are on the whole. On the negative side, this shows a lack of confidence and business acumen that is at the root of this epidemic of undercharging. Calculate Your Cost of Doing Business Fortunately, there is a cure. Treatment begins by deciding what sort of business you run so you can set appropriate prices. Do you predominantly cater to pet owners who just want a basic short clip and bath, or do you cater more to clients who want specialized and highly skilled services? If you are grooming mostly dogs that are clipped down one length all over, you can do many more per day than a groomer who is scissoring poodles and hand- stripping terriers. How many dogs do you choose to handle per day? All of this figures into the rates you charge. Many groomers decide what to charge by placing anonymous calls to local competitors’ shops and asking for price quotes. While this is a good way to peeve your local co-groomers, it is a lousy way to price your work. One groomer in your area may use the rock-bottom cheapest shampoos, groom high numbers of dogs, cage-dry every dog and rent her space cheap from her Uncle Louie who cuts her a good deal. The next groomer you call may invest in the highest-quality tools and products, fluff-dry even the pugs he or she grooms, and pay top rent for a great location. The first groomer in my scenario may charge an average of $18, and the second one might average $50. How would you know where to base your fees based on what they quote? Instead, you need to figure out the actual cost of running your grooming business. Debi Hilley, owner of A Cut Above (Albany, Ga.), created a comprehensive form to figure out just how many pets she needs to groom and what she needs to charge to not only cover her expenses, but also make a profit You also must consider the economic climate in your area. But being able to charge higher prices doesn’t necessarily translate to higher profit margins. “A pet owner can get a dog groomed for $100 in New York City, or pay $25 for a similar trim in rural Vermont,” said Mario DiFante, owner of Four Paws (North Providence, R.I.). “The groomer that charged $25 could be turning more profit on the groom depending on what their business overhead is.” Salary surveys are a good way to find out how your fees compare to other groomers in your area and across the country. In 2005, PetGroomer.com conducted a national survey of 7,000 stylists, the largest survey of groomers ever done, according to the Web site. Although the survey will not help you understand what you need to charge to cover expenses, it is encouraging to see that grooming fees across the country are on an upward trend. Groomers across the United States are demanding—and receiving—more for their services then ever before. Charge Enough to Make a Profit After you know exactly how much it costs to run your business, you need to figure out what you need to earn per hour to cover those expenses and make a profit. Billy Rafferty, who owns and operates the very successful grooming salon Doggy Dooz Inc. (Chicago), said, “I base my fees on how much I need to earn per hour. My goal is to bring in $90 to $100 for every hour I work.” Keep in mind that not only do your hourly fees need to cover the hours actually spent grooming, but also reflect time spent doing paperwork, answering customer calls and cleaning up. By streamlining and organizing business tasks, you can actually increase your income. “Cut down on interruptions, keep conversations with clients as short as possible and do not be a slave to the phone,” said Laurel Tofflemire, owner of Empire Grooming (Coos Bay, Ore.). When you are busy, use voice mail and call customers back. If you have employees, let them deal with the customers so you can keep grooming. If you can groom an extra small dog per every two hours you work because you can groom faster, you can give yourself, say, a $20 an hour raise, depending on prices in your area. Hiring someone to answer the phone and do paperwork also can help you groom more dogs per day. This might be a good option if your shop is busy. Raise Fees Periodically Once your basic prices are set, you need to schedule regular cost-of-living rate hikes. “Rather than wait several years between price increases and then raising rates dramatically, it is better to raise rates a small amount each year,” said John Stazko, an educational speaker dedicated to making the grooming industry a better place to work. Many stylists choose to raise rates in the spring when business is typically at its busiest. You also can plan rate hikes when you are making improvements or renovations to your business. Even something as simple as a fresh coat of paint can give your business a new look and feel that gives customers the impression that they are getting their money’s worth. “Giving quality service is about more than just the pet’s haircut,” said Bayla Feldman, manager of Benji’s Place (Winthrop, Mass.). “Sanitary, safe conditions, good equipment and good-quality products all come into play. If you do not have a clean, attractive work environment, you cannot demand high prices.” Besides offering a pleasant and professional business image, you also can command good prices by differentiating yourself from other stylists. For example, becoming certified in pet CPR or earning Certified Animal Handler status are easy things you can do to show you care about your work and are a serious professional. Evidence of competing in grooming competitions is a surefire way to impress clients as well. How you raise your rates also is important. Don’t be apologetic and sheepish when you announce a rate hike. Be proud that you are building a successful business. Higher prices convey the image that the consumer is getting something of value. In fact, many groomers report that they actually receive more tips after they have raised their base grooming fees! Posting a notice of a planned increase is fine if you feel you should, but keep in mind that your physician, plumber and auto mechanic don’t warn you before they up their rates. Pet stylists who are able to make a nice profit doing work they love build healthy, successful businesses. When you earn a profit, you can afford to purchase tools such as vacuum clippers, bathing systems, electric or hydraulic tables and other time- and labor-saving devices. These tools enable groomers to work more safely and efficiently, and are always a good business investment. When you earn a good living at what you do, it improves your outlook on life, reduces dreaded burnout, and gives you a chance to save for your future. Believe you are a professional and charge what your skills are worth. It is time to stop the epidemic of undercharging for our services. pa Daryl Conner is certified by the International Society of Canine Cosmetologists as a Dermatech Petcare Specialist and as a Master Pet Stylist Meritus. Happily employed at Yankee Clipper Pet Grooming in Rockport, Maine, she has loved styling cats and dogs for more than 20 years.
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