Having trouble setting prices for your barber shop? How to decide using the "Ramen set meal x 10 times theory"
Background and aim of pricing
For barbershop owners, pricing for services such as haircuts is a big issue that causes headaches. If the price is too high, customers may leave, and if it is too low, not only will you not make a profit, but the value of your shop may be underestimated. So, the price of a local "ramen set meal" is a good reference. By using the price of a set menu such as ramen and gyoza, which is a common meal out, as a guide, it is possible to set prices that match the local sense of price. As the name suggests, this "ramen set meal x 10 theory" is a simple method of using the price of a ramen set meal multiplied by 10 as a guideline for your shop's haircut fees.
Specific examples of bridging regional differences
Using this theory, it is possible to reflect regional price differences in prices. For example, in a regional city, a ramen and gyoza set menu may cost around 900 yen . In that case, the price of a haircut at a barber's shop could be set at around 10 times that amount, or around 9,000 yen , as a guideline. Meanwhile, in urban areas, a similar ramen set meal may cost around 1,500 yen . In that area, setting the price of a haircut at around 15,000 yen would be a price that is in line with the local price level.
Why do local dining costs affect barbershop prices?
The "small meal out expenses" that people pay on a daily basis reflect the general sense of spending in that area. The price of a casual meal out, such as a ramen set meal, is an indicator of how much money local residents usually spend. Therefore, if you use that price as a standard, you can expect to set prices that are not strange to customers. On the other hand, if you set a price that is far removed from the local cost of living, it will likely be perceived as "too expensive" or "too cheap," which will have an impact on attracting customers. In addition, the price of a ramen set meal is sensitive to price fluctuations and the economy. By reviewing the cut price in line with these changes, you can always maintain a price that is in line with the times and local conditions.
Advantages and disadvantages of using this method
merit
- Simple and easy to understand: It does not require complicated market research or calculations, and anyone can use it right away. Having a single guideline reduces the headaches of setting prices.
- Easy to adapt to local prices: It is easy to determine prices that correspond to local standards of living and prices, leading to pricing that is easy for customers to accept.
- Easy to adjust: Simply review the price of your standard ramen set meal and you can easily adjust your restaurant's prices. Another attractive feature is that it is easy to respond flexibly to price fluctuations.
Disadvantages
- Price variation at the reference store: The results will change depending on how you choose the ramen store to use as a reference. Prices vary from store to store even in the same area, so you need to be creative and check the prices of multiple stores and take the average.
- Consistency with brand strategy: Depending on the concept and target demographic of your store, it is not always best to match the local average price. If you are a high-end barbershop, you should set your price higher than the average, and if you are a locally based store that sells low prices, you should keep your price 10 times lower. You will need to adjust your price according to your brand strategy.
Specific pricing process
- Research nearby restaurants: Find out the price range of restaurants around your restaurant. Check the menu prices of restaurants that locals frequent, such as ramen shops and set meal restaurants.
- Calculate the average price: Calculate the average price of the standard menu (e.g. ramen + gyoza set) from the price information of multiple stores. For example, if the survey results show that the average price of a ramen set meal is 1,000 yen, use that as the standard value.
- Set "x 10" as the base and make final adjustments: Multiply the calculated average price by 10 to arrive at a rough standard for haircut fees (e.g. 1,000 yen x 10 = 10,000 yen). Then, take into consideration your salon's operating costs, services offered, and brand image, and fine-tune the prices as necessary.
- Fine-tune while observing customer reactions: Run your business for a while at the set price and observe customer reactions. If many people say it's too expensive, consider lowering it a little, but if it seems to be accepted without any problems, reconsider whether you can further increase the price while improving the service content. Adjust to the optimal price while observing customer feedback and store visits.
summary
The "Ramen Set Meal x 10x Theory" is one of the effective guidelines to use when you are struggling to set prices for your barbershop. It is also useful when opening a new shop or revising prices, as it allows you to intuitively determine the appropriate price based on the local price level. However, it is only one guideline , and it is important that the final price is decided based on your shop's brand concept , services , and customer demographic . Use this theory as a hint to find the optimal price that is unique to your shop.
In order to increase the brand power of a barbershop, it is essential not only to set appropriate prices, but also to take measures to improve customer satisfaction. For example, even the cape used during treatment can have a significant impact on the impression and professionalism of the shop. By using high-quality capes from BarBer & Apparel Nakamura Shoten , you can create a high-quality, professional atmosphere and increase the trust of customers. As a result, the value of your services will increase, and it will be easier to develop higher-priced menus.
For barbershop owners, why not take this opportunity to review the items you use in your own shop? By looking at the products from BarBer & Apparel Nakamura Shoten , you can consider introducing items that will help improve your brand.
SHOP
bonus
The following price list is the result of a survey targeting only "independently run ramen shops."
It's interesting to see how the prices vary from region to region.
Please feel free to use this as a reference.
Using Tabelog and Google Maps as references, we investigated the set meal prices of privately owned ramen restaurants, focusing exclusively on prefectural capitals.
- Target area : Prefectural capitals only
- Sources : Tabelog, Google Maps reviews, official website, etc.
- Data period : Get the most recent prices possible, going back up to 3 years
- Sample size : Collect data from 10 to 20 individual stores in each prefectural capital
- List price: fractions rounded down
Prefectural capital | Average price of a ramen set meal (yen) | Barbershop target price (yen) |
---|---|---|
Sapporo City | 1,300 | 13,000 |
Aomori City | 800 | 8,000 |
Morioka City | 900 | 9,000 |
Sendai City | 900 | 9,000 |
Akita City | 800 | 8,000 |
Yamagata City | 800 | 8,000 |
Fukushima City | 800 | 8,000 |
Mito City | 800 | 8,000 |
Utsunomiya City | 900 | 9,000 |
Maebashi City | 800 | 8,000 |
Saitama City | 900 | 9,000 |
Chiba City | 900 | 9,000 |
Shinjuku Ward | 1,500 | 15,000 |
Yokohama City | 1,000 | 10,000 |
Niigata City | 900 | 9,000 |
Toyama City | 800 | 8,000 |
Kanazawa City | 900 | 9,000 |
Fukui City | 800 | 8,000 |
Kofu City | 800 | 8,000 |
Nagano City | 900 | 9,000 |
Gifu City | 800 | 8,000 |
Shizuoka City | 900 | 9,000 |
Nagoya City | 1,000 | 10,000 |
Tsu City | 800 | 8,000 |
Otsu City | 800 | 8,000 |
Kyoto City | 1,000 | 10,000 |
Osaka City | 1,400 | 14,000 |
Kobe City | 1,000 | 10,000 |
Nara City | 800 | 8,000 |
Wakayama City | 800 | 8,000 |
Tottori City | 700 | 7,000 |
Matsue City | 800 | 8,000 |
Okayama City | 900 | 9,000 |
Hiroshima City | 1,000 | 10,000 |
Yamaguchi City | 800 | 8,000 |
Tokushima City | 800 | 8,000 |
Takamatsu City | 800 | 8,000 |
Matsuyama City | 900 | 9,000 |
Kochi City | 800 | 8,000 |
Fukuoka City | 1,000 | 10,000 |
Saga City | 800 | 8,000 |
Nagasaki City | 900 | 9,000 |
Kumamoto City | 900 | 9,000 |
Oita City | 900 | 9,000 |
Miyazaki City | 800 | 8,000 |
Kagoshima City | 1,000 | 10,000 |
Naha City | 900 | 9,000 |
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