Did the title get you here? Yeah – it was a good one and it's one of the strategies we're going to discuss below. Today we're going to briefly dive into "The Mind Games of Money" and decode the psychology of pricing.

We're constantly asked questions about pricing – which is why we talk about it every 6-8 weeks. This time we're going to dive deeper into one of our unconventional approaches on pricing, because beneath the surface of numbers and decimal points lies a fascinating world of psychology that can make or break a sale.

*To make sure we didn't overload you with information we limited our list to the three below.

If you want the full list and a one-time, 30min, complimentary consultation on how to implement one of these strategies in your business - text "strategy" to 888.572.2017.

The Decoy Effect: How Comparison Shapes Choice

Ever wonder why companies often offer three pricing tiers? It's not just to cater to different budgets—it's to guide your choice.

The Economist magazine once offered three subscription options:

• Web-only subscription for $59
• Print-only subscription for $127
• Web and print subscription for $127

At first glance, option 2 seems pointless. Who would choose print-only when they could get web and print for the same price? But here's the kicker: the presence of option 2 made option 3 seem like a bargain, significantly boosting its sales.

This principle, known as the "decoy effect," is used widely. Netflix, for instance, uses a three-tier pricing strategy that makes its standard plan seem like the best value, nudging customers away from the basic plan.

Anchoring and Framing: The Power of Context

The way a price is presented can be just as important as the price itself. This is where anchoring comes into play.

In a study published in the Journal of Marketing Research, researchers found that exposing consumers to a high anchor price for a product increased their willingness to pay by up to 50%.

Apple masterfully employs this technique. When they launch a new iPhone, they often introduce the premium model first, anchoring a high price in consumers' minds. This makes the standard model seem like a bargain in comparison, even though it's still a premium-priced product.

Charm Pricing: More Than Just Numbers

A study published in Quantitative Marketing and Economics found that using a $9 or $7 ending increased demand by more than 24% compared to a nearby price point. This phenomenon, known as "charm pricing," is so powerful that it even works when the 9 or 7-ending price is higher than a nearby round number.

While these psychological pricing techniques can be powerful tools, it's crucial to use them ethically. Manipulative pricing practices can damage trust and harm long-term customer relationships.

The key is to use these insights to better communicate your value, not to deceive or manipulate customers.

Understanding these psychological principles - as a barber - gives you a powerful toolset and an advantage in your industry. Brainstorm on which of the strategies we discussed best fits your current business model.

Remember, the goal isn't to trick customers into spending more, but to present your pricing in a way that accurately reflects the value you offer.

Feel like you know were to go from here, but you'd feel more comfortable with a personalized plan of action? That's why we're here! Text "strategy" to 888.572.2017.

The SBA (Small Business Association) reports that businesses conducting mid-year audits are 83% more likely to secure funding when needed. But in the barbering world, only 11% of barbers (via self or outsource) maintain, accurate up-to-date financials - and there’s no data on how many barbers actually conduct mid-year or annual business audits.

Mid-year is when common people slack or maintain - it’s also when the cream of the crop level up. At this crucial mid-year point, is your barbershop financially f[H]it or are you risking your future growth?

Think of your business as your car sitting in the driveway and business audits as the gas refills, oil changes, tire rotations, etc...To keep it running smoothly, you or a professional need to regularly perform maintenance. You don’t just drive your car and hope the tank magically gets refilled (even though that would be amazing). And if your brakes were screeching so loud that it was heard three blocks down the street, you wouldn’t just rock it out by blasting your stereo hoping the music drowns out the shrieks. No, you'd take it to a shop, allow them to run diagnostics and make critical adjustments. Well - guess what? That's exactly what your barbershop needs right now.

Starbucks, a company that knows a thing or two about consistent service, reviews its sales data weekly. Why? Because data doesn't lie. It can be manipulated to tell a story - but at its core - data doesn’t lie.

In big business it's recognized that three aspects majority of businesses lose money on are taxes, operations and marketing.

Taxes

I know, I know. Taxes are about as exciting as watching paint dry. But here's a statistic that might perk you up: The IRS reports that businesses that engage in mid-year tax planning can reduce their tax liability by up to 85%. That's real money back in your pocket.

Operations

Let's talk efficiency. Toyota's famous for its "lean" manufacturing process, which has helped them reduce waste and increase productivity by up to 30%. Now, you're not building cars, but the principle applies.

How streamlined are your operations? Are you wasting time between appointments? Is your booking system working for you or against you?

Marketing
Your marketing strategy should be tunnel-visioned based on system data. Did you know that Nike adjusts its marketing campaigns quarterly based on performance data? They consistently see a 40% increase quarter-over-quarter in campaign effectiveness as a result. What's the barber equivalent?

Have you set a marketing budget or are you just posting the same reels and videos as every other barber? Or are you just throwing money at social media ads and hoping for the best? I know maybe you're reaching out to influencers who have a large following and trying to tap in their market. Smart – you're in NC tapping into a FL market. It's time to double down on what has been proven time after time to work.

A mid-year business audit isn't just a feel-good exercise. It's a critical business move that can mean the difference between scraping by and thriving. Remember, you're not just cutting hair - you're running a business.

It's time to take a hard look at your barbershop, make the tough decisions and set yourself up for a killer second half of the year. Recently a barber out of Raleigh and I had a great conversation about the information I just told you. He owns three shops and said something that you may be thinking - "I wish I had the time to think about these things and the time to execute these practices."

In response to his comment, we created a Barber Business Audit Checklist. Text "audit" to 888.572.2017 to get started. Don't let another day go by leaving money on the table.​​​​​​​​​​​​​​​​ The clock's ticking. What are you going to do about it? Your move, boss.

Davian: Alright. So we just wrapped up an amazing session this morning. Thank you for the invitation. You mentioned this is the first time you guys did this. What was your inspiration?

William: I know they got great ideas. I know they got great vision of things they wanna do. And sometimes, as entrepreneurs, sometimes we get caught in our head on the ideas, but we don't put them down on paper. Right? And so I'm a fan of the Business Model Canvas because I utilize it myself as well whenever I just want to kind of brain dump and get these ideas out of my head. And I try to explain to them that even when you dump it, it's, like a living document.

William: So for those that are not familiar with the Business Model Canvas, it's 9 building blocks allowing you to break down your vision of your business - right - from the cost to deciding your customer segment to some of the channels you have to go through, how to reach them, as well as, some of the other activities to help make that business successful, and also understanding your revenue, but also understanding your cost as well.

Davian: Surprisingly enough, I've seen or you might have even heard of, a school doing something like this before, but it usually involves them building up their own mock barbershop.

Davian: You did a little spin where you kind of gave them free reign, where they could create any type of business model with any industry - not just the barber industry - why that?

William: I can't pronounce the gentleman's name who actually discovered the Business Model Canvas format. But I use it as part of my mentoring for other entrepreneurs as well. And, the main thing I wanted them to take away from it is that even though it wasn't a barbershop - as long as you understand the requirements to start a business it'll help you in your journey in being an entrepreneur.

William: The same fundamentals you need to start a barbershop, you can apply those same steps to start any business. So I allowed them to have the free reign to think of any business, in order for them to think outside the box, because the most important part, is that they understand how to use that tool. And the cool thing is that all the information they put down on the canvas, could be built and turned into a more traditional business plan.

Davian: There's something called cross industry practices (CIPs). So how one of the students presented on an amusement park and was figuring out how they can attract customers - some of those tactics can be translated into their barbershop or their mobile barber truck or whatever else they want try to create.

William: And I was super proud of them because some of them kept the businesses a secret. They didn't want tell me prior to presenting because they knew I would start giving them the 3rd degree.

William: I was very proud of them. They did exactly what I was hoping they would do - which is to allow themselves to be creative, allow themselves to be free - because when you're thinking about a business, it doesn't have to always be daunting. It can be, but, you know, we want to be able to tap into that creative space so you can really open up and think about everything.

Davian: Expectations. What did you expect them to come up with? And did they exceed that expectation or meet it?

William: They met it and some exceeded it as well. I say they all exceeded it because I'm surprised some even showed up and presented. I was thinking that they would use an excuse to take a day off. So, yes, they all exceeded it.

William: You know, again, we want them to know how to cut good hair, but we also want them to know how to run a good business as well. And that doesn't necessarily mean a full shop because those same principles apply, to your individual chair as well.

In an industry where 80% of new businesses fail to differentiate themselves, having a solid set of Standard Operating Procedures (SOPs) isn't just nice to have – it's your lifeline to success.

According to a study by the Professional Beauty Association, only 13% of cosmetology & barber schools and salons & barbershops have comprehensive SOPs in place. That means 87% of the industry is missing out - and I’d bet 10% of that 13% is cosmetology & salons, not barber schools & shops.

Here’s what’s crazy - your love for some companies are due to their phenomenal SOPs.

1. Starbucks' "Green Apron Book": This manual is the bible for every barista, covering everything from drink-making to customer interaction. McKinsey & Company found that businesses with standardized processes achieve 30% higher operational efficiency.

2. Disney's "Four Keys": Safety, Courtesy, Show, and Efficiency. These aren't just words – they're the foundation of Disney's legendary service culture. According to Cornell Hospitality Quarterly, Disney's structured training significantly boosts customer satisfaction and repeat visits.

3. Ritz-Carlton's "Gold Standards": From their Credo to their 12 Service Values, these standards guide every interaction at Ritz-Carlton. The Journal of Hospitality & Tourism Research found that these rigorous standards significantly enhance guest loyalty and satisfaction.

So, what's in a good SOP, and why should you care? Let's break it down:

1. Vision & Mission: This isn't just fluff. Companies with a clearly articulated purpose outperform others by 42% in profitability. Your vision sets the tone for everything else. So spastically speaking if you earn $70,000 annually without a vision & mission, you can become a 6 figure barber solely by doing the work and adopting a vision & mission.

2. Customer Service Philosophy: 86% of buyers will pay more for a better customer experience. Your philosophy isn't just words – it's money in the bank.

3. Hygiene & Sanitation Policy: In a post-pandemic world, 76% of consumers say cleanliness is a top factor in choosing a service provider. Your cleanliness standards aren't just about health – they're about trust.

4. Performance Management: Businesses that implement regular performance reviews see a 14.9% lower turnover rate. This means no more revolving doors of barbers and empty booths. Keep your team sharp so clients keep coming back.

5. Conflict Resolution: Workplaces with effective conflict management are 131% more likely to have engaged team members. Engaged barbers = Empowered clients = Successful shop.

But here's the real secret: SOPs aren't just about rules. They're about culture. And culture? That's your golden ticket.

Companies with strong cultures see a 4x increase in revenue growth. Let that sink in. Your SOPs aren't just paperwork – they're the blueprint for your success.

Implementing SOPs can:

1. Increase Efficiency

2. Boost Profits

3. Enhance Training

4. Improve Client Retention

In a world of barber schools and barbershops barely treading water, the winners aren't just teaching the exam and giving fades – they're cutting through the noise with a well-defined brand and waterproof operations. You might not be Starbucks, Disney, or Ritz-Carlton, but you can learn from their playbook and dominate your local market.

It's time to sharpen more than just your scissors. Craft your SOPs, build your culture and watch your business transform from a commodity to a community-impact.

Want a head start? Text "SOP" to 888.572.2017 or click the button below to get your hands on our comprehensive Barber SOP template.

McDonald’s isn’t just a place to get a burger; it’s a place where families come together. Their story emphasizes quick, reliable, and family-friendly service. Compare this to Burger King’s “Have it your way” campaign, which highlights customization and personal choice. Each brand tells a different story, even though they both sell burgers and fries.

In a world where "a haircut is a haircut," how do modern barbers stand out? The cold hard truth - an astonishing 80% of new businesses fail to achieve brand differentiation. And in the barbering world swimming with sameness on social media, that lack of a distinct identity is a death sentence.

But there's a simple solution you can learn from an unlikely teacher: The restaurant industry. Because just like restaurants offer similar core products (burgers, sandwiches, fries, etc.), barbers at a core provide commoditized services - haircuts and grooming.

Barbers and restaurants have a lot in common. Both industries sell similar products under different brands and success hinges on various measures one of them being how well they differentiate themselves through their messaging.

Right now, many barbers are making the mistake of marketing themselves in the same generic way, particularly on social media. You need to realize that, like the restaurant industry, your product is essentially the same: haircuts and grooming services. What will set you apart is your unique story and brand identity.

This same phenomenon drives over $935 billion in U.S. restaurant sales annually, as brands captivate audiences through their unique personalities and experiences.

The Harsh Barbershop Reality Now contrast that with your average barber's approach to marketing. According to research by Phorest Salon Software:

• 53% of barbershops have an inconsistent or non-existent brand presence
• 68.5% don't prioritize investment in brand development and differentiation
• Only 16% actively work on developing their shop's story and identity

In other words, most barbers are sleepwalking, blissfully unaware that their very existence relies on shattering perceptions that "a haircut is just a haircut." Without a distinct brand story to capture clients' imaginations, you're merely a forgettable commodity.

So how can barbers take a page from the billion dollar restaurant playbook for storytelling success?

Follow these steps:

1. Unique Value Prop: What makes your skills, atmosphere, and personal vibe different? Do you specialize in modern styles, provide old-world grooming with straight razors, or cultivate a community hangout?
2. Build Your Narrative: Develop the narrative behind your brand's "why."
3. Show, Don't Tell: Forget ambiguous slogans and the oversaturated before/after transformation videos. Authentically market your story through powerful visuals:
   1. Dynamic client transformations
   2. Collaborations with local businesses
   3. Share tough conversations, if permitted
4. Infuse It Everywhere: Consistency and constant reinforcement breed familiarity.

Don't let your barbershop get lost in a million voices screaming for attention. Legacy barbers aren't just skilled with scissors - they're masters at storytelling too.

Does your shop's unique brand narrative spark that level of emotion, affinity, and differentiation?

If not, it's time to pick up your pen and start writing a new chapter for your barbering legacy. Don't know where to start or want someone to bounce ideas off of? Text "strategy" to 888.572.2017.

In our blog post "All You Need Is 90-seconds" we discussed the importance of implementing the GND (Golden Nuggets of Data) strategy, so let's address the elephant in the room...

...The 90-second investment at the start of each client interaction creates a ripple effect that allows you to proactively understand and cater to your clientele like never before. But here's the hard truth - for this strategy to pay off, you have to conquer one of the industry's biggest client experience killers: lack of timeliness.

You know exactly what I'm talking about - Client B arrives at 10:50am/10:55am for their 11am cut, only to be waiting until 11:15am/11:20am because you were still wrapping up Client A's appointment from 10:15am. This "cascade of lateness" creates a rushed, frazzled experience right out of the gate.

As the old saying goes, "Being early is being on time and being on time is being late." Guess what? Research actually proves it - data from the University of Mississippi shows that even minor delays of 6 minutes or less can significantly impact how customers perceive and rate a business's service quality.

Client B is now sitting anxious in your chair, feeling like an inconvenience from the jump. Not exactly the mindset you want them in when you're implementing strategies that promote client retention and additional revenue streams.

You know income tax, property tax, sales tax? Well this is called 'timeliness tax' - when either your chronic lateness, mismanagement of time or looseness on disciplining late clients, eat into your bottom line.

Professionals from elite consulting firm Bain & Company found that every 5 minutes of lateness leads to a 25% decrease in productivity over the course of a day. For a barber or stylist regularly running 10-20 minutes behind, that's a devastating tax being paid on your effective service rate and revenue-generating potential. So having funding to grow your business or paying yourself to support the lifestyle you want will be extremely difficult and physically taxing - that's another tax you just introduced into your business.

So while the GND strategy is a powerful tool, it's just one piece of a greater commitment to punctual, respectful client interactions from start to finish.

Whether it's spacing out bookings, enforcing check-in/cancellation policies, or simply improving your personal time management habits, prioritizing timeliness allows you to:

1. Provide a best-in-class experience primed for capturing accurate customer data
2. Maximize your productive output to earn what you're worth
3. Build a reputation for reliability that keeps clients coming back

Transforming your barbering business goes far beyond just implementing new tactics. It starts with living out the basic principle of respecting your clients' time, from the second they walk through your doors.

With timeliness in place as the sturdy foundation, that's when simple strategies like the GND strategy can flourish into game-changers for understanding your audience and delivering more value.

So reflect on this question and answer to yourself or below in the comments.

What small, immediate adjustments can you make in your daily operations to start building or maintaining a reputation for reliability and respect for your clients’ time?

If you want more guidance and practical steps in creating a system to decrease the timeliness tax, text "strategy" to 888.572.2017 or click the get connected button below.

According to a study by the Missouri University of Science and Technology, people are most honest in the first couple of minutes of an interaction when the human tendency toward deception and DSA (dynamic social awareness) hasn't yet been triggered.

Psychologists at Harvard confirmed this, revealing the first 90 seconds of an encounter carry a psychological "Honeymoon Period" where people are subconsciously focused and open books.

As a barber, you live and die by your ability to truly connect with your clients on a personal level. Having that rapport and understanding of who they are is what separates you from being a commodity cut.

But how can you systematically automate and scale that knowledge beyond just the clients you directly rock with? The answer is shockingly simple - a 90-second survey completed immediately when they sit in your chair.

This isn't some extensive interrogation into their life story and deepest desires. You just want to capture the Golden Nuggets of Data (GND).

That's it! Basic information that allows you to remarkably transform your business.

Research by the Harvard Business Review found that 57% of customers reveal personal data through companies leveraging FOMO (fear of missing out) and social pressures.

Implement this strategy -->

1. Have a device that you hand clients when they sit in your chair.
2. Have the survey already up on the screen.
3. Make a statement like:
   1. "I'm going to hand you this form really quickly. Most people fill this out in about 90 seconds."
   2. Or "Here you go. People take about 90 seconds to fill this out."

This strategy uses positive social pressures that indirectly creates a trusting space for your clients by creating a picture in their mind that others did the same which motivates their cooperation through a phenomenon called normalcy.

With a simple 90-second survey you start to grow a database with key insights like:

• How to increase your open, conversion and retention rates
• Best times and days to strategically schedule promotions and marketing
• Zip codes to analyze where your market reach extends

You're not simply collecting data - you're opening up gateways to new revenue streams, profoundly better experiences and lasting relationships with your existing and potential client base.

The 90-second investment at the start of each client interaction creates a ripple effect that allows you to proactively understand and cater to your community like never before.

No more fishing for sharks in a sea using bass bait.

Embrace the humble survey not as a chore, but as a psychological secret weapon to elevating every facet of your barbering services and bottom line.

So reflect on this question and answer to yourself or below in the comments.

Think about a restaurant, mechanic, coffee shop, shoot...maybe even a barbershop you frequently visited, but at some point you decided to stop going there. Why did you stop going there? Other than moving - I can guarantee that they didn't capture and utilize the GND.

If you want to know more on how to capture and utilize the GND in your business, text "strategy" to 888.572.2017.

We're going to jump straight into a formula today. The cost of your products/services should be less than the price your clients pay, which should be less than the value your clients receive. This is 99% of businesses desired pricing model.

The actual cost of providing products or a service should be less when compared to the price tag you put on it. And more importantly, the value your clients perceive should be exponentially higher than that sticker price.

For example, a bottle of shampoo & conditioner may only cost you $18, but you charge $29.99. Why? Because clients aren't just paying for the product, they're paying for the promise of cleanliness, convenience, peace of mind and maybe even finding love with better hair days.

A basic haircut service may have close to zero hard costs for you. Yet you charge $50. Because to your client, that $50 could be the admission ticket to landing a new job, nailing a big promotion or looking fresh for a memorable life event.

Seems crazy when you break it down to the true costs, right? But that's because you're not selling shampoo & conditioner or haircuts. You're selling feelings, perceptions, and identity transformations.

I know what some of you are thinking, "But doesn't my labor cost something since I'm providing the service? I have to charge for my time. I have to charge my worth."

Sure, your time has value. But look at it this way - if you only had 24 hours left to live, would you charge $100/hour and only work those last 24 hours for $2,400? Most people would say no, because you can't put a hard number on the value of your existence or your time. This example may seem extreme, but think about it - your "worth" is subjective based on many factors, with the largest factor being how much time you believe you have. The less amount of time you believe you have, the more valuable your time is.

The truth is, most people don't charge what they're literally "worth" by the hour. They charge based on what they want to make. If you want $1,000 a day and only want to cut 10 heads, you'll charge $100 a cut.

The question is rarely "What am I worth?" It's "What do I want?" People charge what they want, not what they're worth.

Elevate Your Marketing

Think about those commercials that start by grabbing your attention with an exciting scene or story...only to reveal they were advertising something completely different by the end.

Like a family camping adventure that draws you in with the sights and sounds of nature, until finally there's a close-up shot of a Ford truck and their promotional financing deal.

Whether you know it or not you were sold on the experience and emotions first.

A study by Harvard Business School found that 95% of purchasing decisions are subconscious, driven by emotions and instincts rather than logic.

Data from NeuroFocus' brain activity analysis found ads appealing to human motivators like happiness (31%), appetite (24%), and attraction (14%), were most effective at driving purchasing.

The actual product of a new vehicle almost became an afterthought to the engaging storytelling.

This is the "show me no work" framework, using the r-cubed strategy. Don't sell the product or process of your service, sell the benefits and positive life changes that it can unlock for your clients.

So ask yourself this question and answer to yourself or below in the comments.

What are two ways I could approach my business marketing to first show the intangible value and experience I provide as a barber, before ever directly selling the service or product I provide?

If you want to know more on how to implement the r-cubed strategy and the "show me no work" framework, text "strategy" to 888.572.2017.