Prices are rising everywhere for many services and goods, including hair salon services. So, it’s only understandable if your salon also needs to increase its prices as well. It’s also typical for salons to increase their prices regularly as they add services, invest in new equipment and hair salon supplies or improve their business in any way.
However, announcing a price increase can be nerve-wracking and unsettling. You never know how your clients may respond to a price increase, but on the other hand, what happens if you don’t match your pricing to the expenses of your business?
In order to make sure your business is sustainable and that you’re able to charge your worth, we have written this article to show you how to announce a price increase in a salon.
Every salon is different, but applying these methods and techniques and then tailoring them to your business will allow you to seamlessly announce a price increase.
Are you wondering if your reasons for increasing salon pricing are justified? If so, here are some common reasons why salons increase their prices:
Product costs are higher
New services are added
Hiring talent that has a special skill set
Operation costs are rising
Equipment has been improved
Building enhancements and space renovations are needed
How Much Should Your Salon Prices Increase By?
It can be hard to determine how much to raise your prices, especially because you want to be fair to your clients while also meeting the financial needs of your business. Here are some ways that you can better determine how much of a price increase your salon needs.
Analyze Your Finances – Before you determine a price increase, it’s important to take a look at your finances. Is stocking up on professional hair care products becoming increasingly expensive? You will need to determine how much you will need to raise your prices in order to be in a good place. Having the number you need to reach will help you as you reference it against a few other factors below.
Conduct a Competitive Market Analysis – If there are competing salons nearby, it’s critical to conduct a market analysis to learn what these businesses are charging. You want your salon’s pricing to be competitive. If you raise prices too high, your clients could be forced to go to competitors.
Ask for Feedback from Your Clients – Sometimes, the greatest way to learn more about your business is through your clients. You can always send out surveys to your customers and ask them about potential price increases. This will help you prepare your clients for the announcement, as well as get a better picture of what might be acceptable.
If you’re planning a price increase, here are some ways that you can announce it while being transparent with your clients.
Communicate the Price Increase Well in Advance – If you’re planning on raising prices, make sure to let your clients know well in advance. A few months prior to the change is more than enough time, but one month in advance is ideal.
Share the News Everywhere – Your clients probably get their information in various ways, which is why it’s important to communicate the price increase to them in various ways. Make sure you are telling clients during their next visit, over the phone, through social media and via email. It’s important to make sure your clients aren’t surprised by the news.
Justify Your Price Increase – In order to be transparent with your clients, you can let them know why price increases are happening. Make sure that clients know that price increases will improve the services you offer them.
Include Pricing Ranges on Your Website – A great way to offer price transparency is by posting a price range for your services on your website. This will not only inform your current clients, but it also helps prepare new and potential clients.
Are you feeling more confident about raising your prices and making the announcement to your clients? The most important part of this process is making sure you communicate this change to your clients thoroughly as well as inform them how services will improve with the price increase. It’s also essential to do your homework and come up with an increase that fulfills your needs, but keeps you competitive and feels reasonable to your clients.