Raising your prices is a catalyst for growing your business, but many stylists can be afraid to have “the money talk” with clients. Informing your customers can be hard, but the alternative (not raising your prices) will make your job that much harder. If you’re afraid of losing regulars or worried you won’t be able to justify your new prices — don’t be. When your business grows, loyal clients will grow with you. The biggest threat to your progress? Not raising your prices. Learn how to fearlessly tell your clients your rates have increased, and how it can actually benefit your client relationships.
How to Strategically Raise Your Prices
Consider raising your prices when your demand is higher than your supply. Meaning your salon is fully booked at least 85% of the time or about three to four weeks out. Raising your prices prematurely can ruin your current client demand and actually cause you to lose more business. If you want to slowly raise your prices, you can start by up-charging new customers 10 to 15 percent until you’re ready to roll out your new prices to your entire clientele. This shows that you value your regulars and you’re committed to providing them with the best experience possible.
How to Tell Your Clients
Before raising your prices, it’s important to give them plenty of notice. The industry standard is a month, this allows your clients to warm up to the idea and ensure they aren’t completely caught off guard. When telling your clients, focus on the benefits. Talk about how your new prices will allow you to hire more staff, offer more services, and have more appointment availability. Rather than focusing on why you need more income, focus on how your client experience is improving. Instead of telling your clients your salon rent has been raised, highlight your beautiful salon environment, luxurious products, and equipment that allows you to provide them the ultimate self-care experience. Clients will be more accepting of a price change if they can see how it benefits them.
You can start the conversation in person, raise prices on your website, or run an email marketing campaign that includes the exact date your new prices will take effect and include a list of services with their new prices. Keep your messaging positive and take the opportunity to reinforce how this change will improve your clients’ beauty experience.
Your Talent is Worth it
Your regulars seek you out for a reason, they have thousands of stylists at their fingertips, and yet they choose you. They trust you, your bond, and your talent. To clients, that trust is always worth your fee. While low rates can actually signal low-quality service to consumers, when your prices increase, loyal clients understand that you are improving as a stylist and in return, your services are becoming even more specialized. If you do lose a client, it can be a good thing — it gives you space to replace lost clients with clients who value your service and are willing to spend more.