3 Signs It’s Time to Raise Your Prices
About the Author
Kim Creekmore – After Leaving a successful commission salon to booth rent, I knew that I had to implement structured business practices in order to be successful. My commitment is to share what have learned and how I have adapted them over the years so you can also be successful in business. Visit HairLoveDesign to learn more about Kim and her San Diego based salon.
#1 You Haven’t Had a Price Increase in Years
Price Increases should be made on an annual basis. I’m not taking about that $10 to $20 price increase that we all dread. I’m taking about implementing a small amount every year. We all have annual percentage rate increases that vary based on our economy. We face an increase in supplies, groceries, fuel, housing, and general operating costs. Yet for some reason we don’t feel like we can “do that to our clients”. Well, let me be the first one to tell you, “You can do it!”
Here are some pricing increase tips:
Increase haircut and color pricing by $5 to $10 for all new clients immediately.
Increase all haircut pricing by $2 to $4 dollars for returning clients annually.
Increase color pricing by $3 to $5 dollars for all returning clients annually.
Try increasing prices at the beginning of November. Clients that may think of leaving are more likely to stay with you through the holidays, and they will understand and become absolutely loyal when they realize the value you give them.
#2 You Are Almost to Client Capacity
You’re booked out a full month or two and find it challenging to fit clients in. You may feel bad because your best clients are getting put on the back burner. Maybe you feel like you’re burning out. These are all reasons you should increase prices. Raising your prices will trim your D-level clientele. It’s not a bad thing; some clients just aren’t the right fit and drain more than fill your tank. We all have them. Let them go. Raising your prices allows your best clients to see that your services are of value and will keep them coming back. It gives you room to take on A-level clients who have been looking for you. Yes, you will lose a few clients, but it will be for the best in your business and for your devoted clientele. And if some of the ones you do value leave, they’ll be back. If they believe they can find someone to do it cheaper and get the same results, they will discover reality sooner than later. Welcome them back with open arms and prices you deserve.
Try these tips for client capacity:
Increase all pricing $5-$20 now.
Send out a client email or text stating the start date of your new pricing. Include:
How Much the increase will be, and a “Thank You” offering.
Consider a Pre-booking discount of $5 to everyone who sets up their appointments before they leave.
You may also consider giving away a “Thank You” deep conditioning treatment with the value attached. For Example: Please print this email out for a luxury deep conditioning treatment valued at $50.
#3 You Continue to Invest in Education
Ok, do I really need to tell you that this is the ultimate confirmation in price increases. You go to many of your local hair events, practice on your mannequin head while watching YouTube videos, spend the money to attend the best classes, and best yet, you do classes at the big academies every few years.
You invest in you, so why wouldn’t you allow your clients to do the same? You are a small part of our industry that believes in reinvesting in education on a regular basis. Not everyone commits to improving their business model and technical skills, so why would you not reward yourself with the benefits that come from being the best?
Try these advanced education tips:
For every $500 to $1,000 spent in advanced education, raise all of your prices by $2.
Frame your certificates and post at your station each time you attend a class. (Even the ones that seem silly. Didn’t get a certificate? Create a flyer sharing your achievements).
I use all of these tips to nurture my own business and behind the chair and they haven’t let me down. Don’t allow fear of the unknown stunt your unlimited earning potential.