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by Stacey Soble
11 Points to Consider when Raising Your Prices
I’m constantly approached by salons and booth rental stylists who tell me they need to raise their prices, but they’re simply afraid to. As a stylist or salon owner, why on Earth are you afraid to raise your prices? You are buying ...
May 20, 2016
3 min to read
I’m constantly approached by salons and booth rental stylists who tell me they need to raise their prices, but they’re simply afraid to. As a stylist or salon owner, why on Earth are you afraid to raise your prices? You are buying the same services your clients are, they know about the cost of living and the value of a high-quality service provider.
Instead of being afraid, be proud of the fact that you’re in a position to provide services that are valuable enough to warrant an increase!
Here are 11 tips when raising your prices:
Inform your clients in advance: Don’t be shy about it. Post notices on your mirrors and doors, let clients know what the new price changes are and when they go into effect. Post notices 6-8 weeks before making the change.
Don’t apologize: Explaining the price increase and being honest about the reasons it’s needed is not the same as apologizing. DO NOT apologize. You need to earn a comfortable living as much as anyone else, stand behind your decision. You can easily point out that you’re moving with the industry and that your services and level of expertise (as well as costs of doing business) have increased in the past few years.
Over deliver: Treat every client as if they are your only client. Provide the absolute best possible service every time you see a client, make them see the value in whatever you may charge.
Explain your costs: In some cases, if engaged in discussion, you can simply explain your need to raise prices. Let clients know where the additional funds will go. Has your product line increased in price? Will you be getting additional training? Has your rent increased?
Add services: Add a simple value-added service that doesn’t cost you a lot or take a lot of time. Find perks for your clients that make them feel like they’re leaving with a bargain.
Thank your clients: Don’t let one client doubt how much you value them and the trust they put in you. If they know you appreciate them and that you don’t take them for granted, they’ll trust your need to raise your prices.
Send a hand-addressed letter via the mail: Create a simple letter explaining the price increase and outlining the changes, tell your clients you appreciate them, and hand-address the envelope. Let clients know what’s happening AND let them know they were worth your time and a stamp.
Update all items with prices listed: Some stylists and salons have prices listed on a multitude of sites, make sure you update everything everywhere.
Just do it: Quit worrying about how everyone will respond, if you need to raise your prices, just raise them.
Start with just the new clients or give a discount to existing clients: For the first 1-2 months, you could simply increase the prices for new clients. Let existing clients know you’re giving them a XX% discount off the new price for the next 2 months as a small thank-you for their continued friendship.
Remember this: You Earned It!
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