Let’s answer the age-old question: how do you raise your prices to match the value of the services you’re providing without jeopardizing losing clients?
Here are a few signs that you should raise your prices:
- You cannot keep up with supply and demand
- You’re turning away new clients because you’re overbooked
- The cost of running a business is not balancing out with your profit margins
- You invest in education and quality products and are not seeing a financial return
- Your competitors are charging significantly more than you for similar quality services
Now that you’ve determined that a price raise makes sense for your salon, let’s go over how to best execute this new change for your business and clients:
Calculate your worth.
Do the math and figure out how to calculate exactly how much your and your teams’ time is worth to help calculate the right cost changes. You can base your service pricing on the following:
- Your salon’s “cost per hour” for each hour it sells
- The value you deliver to your clients
Once you’ve determined both, you can apply a desired profit margin.
PROTIP: I recommend raising your prices by a significant percentage like 20% to achieve the results you’re looking for, as it is a percentage significant enough to make a difference in bookings.
Plan the rollout.
Make sure to inform your clients of the price change at least 1 to 2 months in advance so that they can prepare appropriately. Post on social media, put up signs throughout your salon, add a small note at each station notifying your clients of the upcoming changes.
Explain your costs.
Be straightforward and communicative with your clients. Let them know that you’re raising your prices and why (the quality of your work, the training for your team, etc.) and show why it’s a worthy investment.
PROTIP: Explain but don’t apologize.
Coach your team.
Ensure that your team is up-to-date with the price modifications rolling out in your salon so they can speak about them with clients confidently and intelligently. Coach them on key points to best equip them for customer questions or potential confrontations.
Make sure your prices and services are worth it. Consider rewarding long-time clients or clients with memberships by adding a little something extra to their next few services, like a hot towel treatment, or small upgrades to thank them for their continued loyalty during this period of change.
Do you need help with your salon’s pricing strategies?
Book your FREE strategy session with me to quickly boost your salon business today!