It’s Time To Raise Your Prices… Here’s How!
Use These Tips To Make More Money!
It’s the start of a new year, so it’s time to consider giving yourself a raise. Your work experience, business costs and inflation have all gone up since the start of 2021, so it’s important to raise your prices accordingly so you can continue to bring in the cash!
If you haven’t thought about raising your prices or have and don’t know where to begin, consider the tips below to get you started!
It’s Time To Raise Your Prices If…
1. You Can’t Remember The Last Time You Did
If you’re not sure when you last changed your prices, then it’s probably time for you to raise them. Inflation, rising operation and supply costs, continuing education fees plus years of experience factor into what you should be charging for your services.
2. Your Costs Have Gone Up
Operating a business isn’t cheap. Let’s say you switched to a pricier product line, took a few classes to stay current on the latest techniques AND upgraded your booking system last year. All of these small changes add up over time and are eating into your profit if you don’t raise your prices to accommodate.
3. Your Specialty Is In-Demand
Are you the only stylist in your salon or area who’s the best at a particular trending technique? If so, you should be charging more for your expertise. Clients who can afford you will spend the money to get the styles they want.
If Your Clients See The Value In Your Services, This Will Rarely Happen.
Here’s How To Raise Your Prices!
1. Who Is Your Target Market?
Before you raise your prices, ask yourself who your average client is and create a business client profile to represent your target market. A business client profile is a detailed description of your average customer. Using software that tracks your clients’ data and purchases, like Booksy, can help you figure out who your customers are and what they’re spending money on so you can adjust your prices accordingly.
Here’s what you should consider for your business client profile:
- What is your clients’ average age range?
- What services do they mostly get?
- How much do they spend on average?
- Do they purchase retail?
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2. Research Your Competitors
Your favorite stylist influencer can run through their pricing in a business post, but what works for them might not work for you based on your location. Get around that by conducting a local market analysis to examine your competitors and local economy. A good rule of thumb is to find competitors who are close to the makeup of your own business—a similar amount of staff, operation strategy and service menu—for a more accurate prediction.
3. Be Honest About Your Business
You might think you’re the best hairstylist or salon around, but what do your clients think? Think objectively about the value of your business through your client’s eyes. Clients will pay more if they see value in your services.
Here are a few things to consider:
- How’s your customer service?
- Are you proficient in every service you offer?
- Do your clients leave satisfied?
BONUS TIP: Run A Trial Period
After you’ve analyzed your business and decided where you want to raise your prices, plan a trial period to test them out. Give yourself two weeks or more to see how the price adjustment performs, then compare your new sales report to your previous sales to see if the new price point is generating more income for you. An easy way to keep track of your sales progress is to use an app that provides in-depth analytics, like Booksy, to help monitor sales over time.
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