How To Raise Prices Without Losing Loyal Clients
Read 5 Biz Tips Before Raising Your Prices
If you were looking for a sign, this is it: It may be time to raise your salon prices. As a stylist, suite or salon owner—YOU are in control of your business, and charging your worth is a must. So, if you have been considering a price increase for awhile but don’t know where to start, read this fast guide for pro tips, key factors and ways to effectively communicate with clients.
1. How to tell if it’s time to raise your prices
The reality is: The decision to raise your prices looks different for everyone—but there are some common factors that you should always take into consideration.
- When was the last time you raised your prices? If you can’t remember (or it’s been a hot minute), the prices you initially set for your salon services might need a refresh.
- Do you offer speciality services? If you offer services that are in demand in your area, this is VALUABLE—and you can charge for it.
- Have you invested in your continued education? Trends change and techniques evolve. The more you learn, the more you earn.
- How has inflation affected your business revenue? Running detailed reports of your finances is KEY. If your costs are rising and your prices are not, you are losing money.
- Do you provide customer satisfaction? Remember that you are in the service industry. It’s not solely about how many years you’ve worked behind the chair or your education—consider your client experience. If you maintain strong client relationships and deliver work they love, that value is worth charging for.
Pro Tip: Knowledge is power—charge your worth!
“Remember that by paying for your services, your clients pay for your education, knowledge and overall excellence,” said a Booksy blog post. “Major (positive) changes in the quality of experience you provide should be reflected in your pricing.”
It’s TRUE. We love this “real talk” by @colorbycarlos.
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2. Why you should raise your prices
If your services are competitive, you provide excellent customer service and you’re investing in your education—what are you waiting for?
- More profit: Consider all of the factors above: Inflation, operational cost increases and price of living changes. You should be earning MORE money to stay afloat, not losing money based on unavoidable, inflation-related price increases.
- Cementing your business image: If you’re a specialist and expert in your field, your prices should reflect that—and this will elevate the business you’ve worked hard for and attract your dream clients.
- Know your worth and charge accordingly: Let this one sink in.
3. How to inform clients about price changes
So you’ve decided to raise your prices (congrats!), now what? The short answer: Be confident and inform clients without needing to defend. Here are some pro tips we snagged from Booksy!
- Your tone matters: Be short, clear and sympathetic in tone.
- Explain the ‘why’: Remind clients that higher price means higher quality. For example: You’ve expanded your service menu, taken educational classes, etc.
- Tell clients in advance: Let clients know the start date so they can plan accordingly. Give clients a month or two’s notice so they can budget.
- Post on social: Share the announcement in a positive way on Instagram and Facebook.
- Update your prices EVERYWHERE: Make sure that you update the price list on your website, booking profile, social media channels and signage in the salon.
Pro Tip: Booksy has a Message Blast feature that allows you to send a positive, direct announcement to all of your customers LIKE THAT.
4. Some clients are worth losing
It’s true: You are going to lose clients—and that’s okay. “Your price isn’t too high, that’s just not your customer,” said barber @theoriginalbarberdoll on IG. “About 10 percent of [clients] will not rebook after the price raise,” according to a Booksy blog post. Not everyone is your target clientele, and the clients who support you (and your new prices!) will make up for it.
Try a salon management system like Booksy to keep track of your statistics and financial reports. This will allow you to see the effectiveness of your price increase in real time.
“The mindset in our industry is changing and I’m here for it,” said barber and Booksy user @theoriginalbarberdoll.
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5. Find your DREAM clientele
Find clients who want the specialty services you offer. Booksy Marketplace makes it super easy for clients to search and book services (on the website and app!). Not only will this make it easier for you to get discovered, but you can even share your reviews and get favorited by clients. Pretty cool, right?
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This content is sponsored.
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