Raising your prices in the beauty industry is rewarding and scary.
Typically, salon owners and stylists should raise your prices anywhere between 5%-10% every year or year and a half.
That sounds like a lot, and it can be.
You have to take into consideration:
- Your demographic
- Your expenses
- Your brand
- Your education investment
- The demand of your services,
- How far your salon is scheduled out in advance
If you’re booked out more than 3 weeks, it may be time for a price increase.
In your area, with your expenses, you may only have a 3% increase. You have to do what you feel is best for your salon business.
Here are my tips:
1. Come up with a Plan of Action Before You Roll Out New Prices
Are you just increasing price for a few of your services?
Or all services across the board?
If you own a salon, is it for every service provider?
Or those most in demand?
The last thing you want to do is surprise your guests with sticker shock. Communication is key.
2. Add Value
Here is another important thing when increasing your prices: Value.
When you add value to your service, guests are less likely to feel uneasy about the increase in price.
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3. Increase Your Prices Around the Holiday Season
It truly is the most wonderful time of the year.
People are used to spending money at this time and are less likely to question the increase.
I don’t suggest a price increase at the beginning of the year, especially coming off of the holiday season.
4. Always Thank Your Guests
The letter on your desk/waiting area or email that’s sent out should always start out with a thank you. It truly is because of them that you are in a position to increase your prices.
My advice: LOVE your guests as much as possible. Be sure to show them how much you appreciate them.
5. Increase Your Prices with Confidence
Last but not least, stand behind why you deserve to charge more.
For instance, if a guest questions you on why you’re raising prices, don’t get nervous, start making excuses, and apologize for it.
Here’s an email template to talk to your clients about raising prices:
“With the cost of inflation and education, it’s very important that I continue to invest back into myself and my business. I want to continue to provide you with the absolute best experience as possible.”