As a salon owner, there will be a time when you need to consider increasing your treatment prices. Whether your supplier has upped their product prices or fellow competitors are raising the stakes, a price increase can be completely justified however, it can cause a loss of custom. Read our top tips below and discover how to retain your client base during a price increase.
When is the right time for a price increase?
There are many reasons why salons increase their pricing. If your supplier increases their prices or you decide to take on a more established brand, an increase is completely justified. You may also find that other salons are offering the same treatments at an increased price, meaning you should consider whether your pricing is too generous.
How much should I increase my pricing by?
It’s not advisable to increase your salon pricing by more than 10% as your services still need to be accessible for your loyal, existing clients. Your clients may not take too kindly to constant change so it’s best not to make price changes more than twice a year. Do your research and find out what other businesses are charging for similar services and always consider the regional average.
How can I keep my client’s happy during a price increase?
Often, clients will be understanding during a price increase, especially if they are happy with the services you provide. However, it is important to be honest with your clients when you decide to up the prices. Whether you’re keeping up with competitor salons and regional prices or simply increasing your treatment pricing due to a rise in supply prices, you should explain your reasons to clients truthfully.
Incentives are also a good way to keep your clients happy during a price increase. As a thank you to your loyal customers, why not offer a discount off their next treatment or introduce a loyalty card scheme into your salon where clients can earn a free or discounted service after purchasing a number of treatments from you.
It is also important to ensure that you are offering quality products and treatments to your clients. Taking on an established, well-known brand or service will justify a price increase and, in turn, is likely to help you gain new custom.
What do you consider when increasing your salon pricing? Let us know your top tips in the comments below. You can also join the conversation on Facebook and Twitter.