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Last updated: February 06, 2018

3 Pricing Structures To Increase Client Retention

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Price carries as much weight as the perception it creates. By setting your prices too low, you run the risk of damaging customers’ perceptions of the services you offer. By setting it too high, you risk losing customers to the next best-priced competitor.


So, if there is one thing salon owners need to know about pricing, it’s that pricing should ALWAYS promote retention. That’s why we grabbed this guide from Mindbody—it helps owners explore new pricing structures that can increase client retention.


Use The Inverted Pyramid To Find Your Pricing Sweet Spot
The inverted pyramid of pricing features three distinct pricing categories—from lowest to highest price—and offers insight as to what pricing structure will work best for your salon and your clients. Here’s how it works (see the visual below): 

  • Intro Offer: These are your lowest priced services. Its goal is to entice new clients, make an outstanding first impression and convert these guests into returning customers at a more expensive rate. And, with the right salon software (like from Mindbody!), salon intro offers are easy to implement and track.
  • Autopay Membership Option: This option gives clients the option of paying a flat monthly fee for unlimited services such as cuts, blowouts, single process color, waxing and skin care treatments. This isn’t the most affordable option, but it can be perceived as the best deal for your services and encourages returning customers to spend more in exchange for greater value.
  • Count Per Session Card: This option is designed for occasional drop-ins and clients who wish to pre-purchase multiple services. It is less encouraging for retention in comparison to autopay memberships, but it still encourages your clients to return on an as-needed basis.


The Takeaway

  • A salon’s focus should always be on pricing that encourages autopay or membership plans, and discourages drop-ins. But, clients usually gravitate toward the lowest-priced or lowest-commitment option, which can work against your goal of retention. To avoid this, make sure your count per session prices aren’t perceived as your best deal.





More To Consider:

  • Pricing: There’s no one-size-fits-all for salon pricing—only you can decide how low or high you’re willing to go with your prices. Mindbody suggests this:
    • Price low if you’re at low capacity and not filling your salon chairs, or if competition is high in your area.
    • Price high if you’re at full capacity (about 70 to 80 percent).


  • Software: The right software can make or break your day-to-day business at the salon. So look for a software that supports automatic billing and reporting to save time as your business grows and better your marketing efforts in the future. 


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