Salon suite owners are always worried about pricing - should they raise their prices, when is the best time, will their clients leave them and more questions. Keep reading to find out the ins and outs of raising your prices and why NOW is the time to raise your prices!
When should I increase my salon suite prices?
The best time to do it is NOW, here are just 5 reasons:
1. Inflation is rising and your overhead costs are increasing. 2. You have gained valuable experience since the last time your prices went up. 3. Each time you expand your skills and tools, you add more value to the client. 4. You provide exceptional service and your clients feel that. 5. Your full book speaks volumes about your current value and the services that are in demand.
Consider this, if the cost of running your business has increased and your prices have stayed the same, you are giving your clients a discount! If your clients see the value in your services, they likely won’t blink at the price increase, and if any do, you'll make up for them with the clients you keep.
You invest a lot of time and energy into honing your craft and keeping up with the latest trends and techniques. There is a cost to that investment and that adds a lot of value to your services. This is an easy one to explain to your clients and they are very happy that you don't let any dust settle on your skills.
Lastly, your clients come to you because you are YOU. Your relationship with your clients is one based on trust and loyalty. They are loyal to you because they trust you, and that is a big reason they will believe in your pricing.
How do I tell my clients?
The first thing you should know is to tell your clients as early as you can. Give them about 2-3 months notice so that most of your clients will have come through you chair at least one more time at the current price. Let them know the date that the change will take place so they can be prepared, and post it EVERYWHERE. Make sure to update your price list on your website, booking site, social media accounts and use signage in your salon suite. Don't let anyone get by without knowing! And when you do tell people, whether in person or a social media post, frame it as positively as you can, and explain why (all of the reasons above).
Will I lose clients?
The short answer is probably. There will likely be people who just can't afford a price hike and that number is usually about 10%. So if you raise your prices 20% and lose 10% of your clients, you're making more money and working less. If you then fill those 10% of appointments with new clients at your new rate, you've got your 20% raise. If, however, you do have clients who can't afford the new price and you don't want to lose them, give them a coupon code, "friends and family" prices are a great way to keep those loyal clients who have been with your for a long time.
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