All business salons need to increase their prices every so often to match inflation and the general cost of running a salon.
Many salon owners dread doing this as it can mean losing clients.However, on the flip side, it can also make your clients more loyal if you do it the right way. When you are 80% to 90% full is a good indication that you can increase your prices as long as it done in the right way.
What to do Before a Price Increase…
– Ensure all your stylists and therapists are fully aware of the increase, when it is going to happen and how much each service is going to increase by.
– Update all your marketing material which have your prices on including printed price lists, website, leaflets and any price forms you have at reception or in your salon
– Decide on a date and give your clients notice (this is key), there is nothing worse than going to the till to pay for your hair or beauty treatment to find out that your bill is more than you expected.
How to Increase your Prices…
– Ensure your stylists and therapists tell each of their clients in person about the price increase, but you could also send out an email informing them with your reasons why.
– It is not advisable to increase your prices any more than twice per year to ensure you retain your clients
– Why not add value to a service throughout the price increase period, like adding a complimentary conditioning treatment or extend a massage by an extra 15 minutes to show you appreciate their loyalty and custom.
Why you are Increasing your Prices…
– Your clients will want to know why you are increasing your prices and this needs to be a valid reason for them to understand
– Remind your clients when you last did a price increase if it was a while ago, be honest and upfront with them.
As long as your clients expect the increase and are not surprised you will not have any huge problems.
How to tell your Clients about your Price Increase…
– Email your database at least 4 weeks before you increase your prices advising them of when this will happen
– Text your database, many of your clients have there phone on them and will pick up a text within minutes
– Write a letter that is personalised to them, this works well if you can give them a lot of notice, as the clients stylist can give it to them in person, remember to say thank you to them for there continued support and loyalty to you
– Use your social media platforms like Facebook, Twitter, Instagram and Google + this shows you are being open, honest and upfront with the increase and not hiding from anything
By using the right approach your clientele are more likely to stick with you as they understand why you are doing it
If you have any methods in which you have successfully implemented a price increase we would love to hear from you…