In mentoring and participating in social media forums, Janet and I often run across statements/discussions to the effect of when you work out of a home-based salon, you don’t charge as much. Why do people think this way, I wonder? Some people add to their statements, “because I don’t have overhead.” The truth of the matter is, you DO have overhead….it’s just disguised and passed along to your personal accounts,
You will have more water, sewer, garbage. More heating and cooling. More internet and phone service than you normally would in your private residence. You’ll have more laundry, laundry soap, cleaning products, supplies like paper towels, trash bags, TP and so on.
Part of your property tax should be allocated to the business. Part of the mortgage. You will no longer have that space available to live in, so it’s not a personal expense any more–it belongs to the business and the business should bear the burden.
You will have driveway usage. Wear and tear on your doors entering and exiting that room. Flooring, door trim, wall paint near the entrance will have wear and tear. There may need to be a walkway put in…and certainly maintained. Outside lighting…maybe signage (if allowed).
All of your services will still take the exact amount of time, product and linens….so there is zero savings there just because you are in a different location.
So, really, there is no reason to discount your service prices just because your location is different. In fact, if I offer you the privilege of entering my home for a service, I’ll certainly be bumping up my “experience” quotient and it will be very exclusive. I would RAISE my prices.