Place the tape measure around the hips at the area the measurement is its fullest. On some women this is higher, others, it may be lower, The important part is finding where it is fullest.
Hip Point:
While still holding the tape measure at the hips, place your finger where the tape measure is on the side, release the tape, and then measure from the waist marker to your finger (Hip Point is the distance from the waist to the fullest part of the hip on the side.)