HOW AND WHEN TO RAISE YOUR PRICES
Raising your prices in the salon world can be rewarding yet scary at the same time. Typically, salons should raise their prices any where between 5%-10% every year or year and a half. That sounds like a lot, and it can be. You also have to take into the consideration your demographic, your expenses, and your brand, and do what is best for you. In your area, with your expenses, you may only have a 3% increase. It's all relative. And,You don't want to price yourself out of your area. Also keep in mind, when you increase your prices you be prepared to lose a few guests. It's always great to have a junior stylist or another stylist that has a lower price point. Your clients will love having another option. This way you can keep them in your salon.
Here are my tips:
- Come up with a plan first before you just roll out new prices. Are you just increasing haircuts, colors, or all of your services? I suggest you give your guests 6 week notice so they have a heads up. Post it on social media, send them an email newsletter, and put a sign at the desk and at each station. The last thing you want to do is surprise your guest. They deserve a heads up.
- Added Value. Here is another important thing when increasing your price point. Add a hand massage, a scalp massage, add a hot towel to their service, anything to pamper them? When you add value to your service, guests are less likely to feel uneasy about the increase in price.
- Increase your prices around the holiday season. It truly is the best time. People are used to spending money at this time and are less likely to complain about the increase.
- ALWAYS thank your guests. The letter on your desk or email that is 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 and hug your guests as much as possible.
- Be sure to have a team meeting to explain to your team all about the price increase. This way they are totally comfortable when your guests ask them about the increase. Set a target date, and have them included in the process.
- Last but not least. Increase your prices with confidence. Stand behind why you deserve to charge a little but more. For instance if a guest questions you on why you are raising prices, don't get nervous, start making excuses and apologize for it. Say YES! With the cost of inflation and education to our team, it is very important we are able to invest back into our brand and our stylists. Plus you get ME! And I promise to give you the best salon experience of your life! NEWS FLASH... Never over promise and under deliver. If you make that promise, you better back it up.