Price increases are inevitable, with inflation and rising costs of utilities and rent for good salon spaces, but salon owners often have trouble figuring out how to deal with these increases. We’ve got some tips for you to help you raise prices the right way and retain customers.
Don’t announce the change
There are a lot of salons that would post pricing increase notices to customers before the increases took effect. This often causes problems for stylists/therapists/technicians and results in customers going elsewhere.
Instead, you can change the price without notifying anyone and deal with issues as they come up. Often, clients won’t notice or care about a small increase ($5-$10). If a customer does notice and complains, you can give them a one-time pass (i.e. pay the old price this time and the new price next time). Usually, all the client wants is a little sympathy from the stylist/therapist/technician and they feel better about the increase in price.
Increase prices by a round number every year
Instead of raising prices by double-digits every few years you can raise the price on your services by $5.00 every year. This works out to a 5% to 10% increase and is a small amount that most clients won’t worry about. It’s much easier to bump up the price by small percentages regularly than by 20% to 30% once; a large increase like that will chase clients away.
Cushion the blow by adding a new perk
You can start offering extra complimentary services, like a glass of wine or 5 minutes of massage. This won’t cost the salon much money but feels like added value to the customer, which makes the price increase seem worth it.
If you go about a price increase the right way you won’t lose loyal clients, and you can even use it as an opportunity to roll out new programs to build (and reward!) client loyalty.
How have you handled pricing increases, and how has it worked for you? Do you have any tips of what to do and what to avoid for other salon owners? We’d love to discuss it in the comments below.