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How To Price Correctly With This Service Charge Formula

How To Price Correctly With This Service Charge Formula

Beauty professionals — use our service charge formula to help you break down when and how much to raise your prices by!

Learn how much to charge for services with our service charge formula.

MOBILESTYLES App is an on-demand app that connects licensed health and beauty professionals with local clients all in the comfort of their own home. By providing premium at-home services, professionals are expected to come at a higher cost than, let’s say, the average professional who the clients travel to. A service charge formula can help any PRO figure out exactly how much of a premium rate to charge.


This research will allow you to evaluate for marketing purposes how much you should charge for premium services. A good rule of thumb is to offer irresistible incentives for clients. For instance, if you offer haircut services, you can include an eyebrow threading service for free – this will entice the client and lead to greater opportunities.


Since you are a traveling, on-demand health and beauty professional, it’s also important to factor in gas mileage for your vehicle when setting your prices. For example, if you normally charge $40 for a haircut and are willing to travel within a 10-mile radius for a client, you can set your haircut price to $45 to include enough for gas.


Other factors to calculate when setting your prices are the cost of tools, time to travel, and products used. When clients book you, they are expecting top-notch services, and with that comes higher-priced services. Remember to also factor in all of your necessities when setting your prices. If you feel you’re not raking in as much revenue, maybe it’s time to raise your prices.

How much is too much, and how much is too little, you ask?

As a freelance health and beauty professional, it’s important, to be honest about three things: expenses, taxes, and clients. Paula Pant, from The Balance, lays down how much you should be saving for taxes. “When you are a freelancer, you aren’t just responsible for paying your income tax. You must also pay self-employment tax.”

Pant recommends “to set aside 25-30% of your taxable freelance income” for income tax, and FICA tax, and any additional taxes you may owe in April. Now, this suggestion isn’t concrete. When filing your taxes, you will subtract your business expense from your overall freelance income, which will round off your actual taxable income.


As a freelance health and beauty professional, it is critical that keep track of all expenses throughout the year. These expenses can include but are not limited to: supplies used on clients, travel expenses, mileage driven, etc.

While providing the most exceptional services, you must also be cognizant of your potential hours of productivity (PHP) and real hours of productivity (RHP). Lauren Gartland, Business Coach, illustrates that by figuring out the hours you actually worked in a week, you can compartmentalize if you should or shouldn’t raise your prices.

The find your daily average, follow the formula: divide the real hours by the potential hours. To find your PHP, write down the hours worked (not including lunch or break times). To find your RHP, write down the exact hours worked. For example, the RHP for a week is 5.5 hours, and the potential is 8– after calculating the average of each day, a week is 27 hours, and the potential is 42, then divide 27 by 42, which is 64%.

Gartland emphasizes, “if your average is 85% or higher, then it is time to raise your prices, as your demand has exceeded your supply. “Start with 10% increments” and then adjust accordingly. She highly suggests repeating the booking rate every three months to analyze what your rate is.


We hope this information has been useful to you as freelance health and beauty professional. Creating a service charge formula can be tough, and enforcing it even tougher. Your services are essential during a pandemic, where clients are seeking normality and to look and feel their best. Thank you for your astonishing services and for choosing MOBILESTYLES App. Stay safe and charming!


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