Salon Business
Learn tips, tricks and business recommendations from our top salon professionals.
01.17.2020
Raising Your Prices in 2020
All businesses raise prices. Bars have happy hours, restaurants offer specials, doctors charge cancellation fees and hotels set prices higher during their peak seasons. If these businesses kept the same prices and menu for years, it is likely they would not thrive for long. As a salon owner you, too, should stay diligent about setting fair prices that absorb rising costs, position your salon competitively, reflect the talent and training you support and keep your salon business healthy year after year.
Increases can be small
When I was a Wella sales rep, I would have owners do cost exercises that helped them realize how much money they were losing daily. I had them consider the money lost with color waste, appointment cancellations, stylists neglecting to suggest or charge for add-on services and retail that does not move off shelf—while realizing their pricing stayed flat year after year. All of these little losses really add up!
A small price increase to clients is necessary and will help offset some of the other loss. As a salon owner, try to get comfortable educating your clientele as to why it is necessary for the salon to raise prices.
Educate clients
How can you inform clients? It is not difficult when you take a straight, honest approach. Your clients are reasonable people who live in the real world. Explain to them:
- Salons’ costs steadily increase. Like all companies, beauty product manufacturers regularly raise their prices to salons. Monthly expenses like electricity, rent and insurance also present periodic increases. The salon must, in turn, raise prices just to stay even.
- The salon invests in staff education. Place value on the education the salon staff receives and that will help clients to accept that you prioritize annual talent investments. Ongoing training helps a stylist to stay up to date with new trends, techniques, products and services, which contributes to making clients look their best.
- You value loyal clients. We are in the service industry! We want to make our clients feel welcome when they walk in our door. Show them your appreciation with loyalty redemptions like discounted retail after a certain dollar amount spent, referral incentives, a birthday gift, etc.
Remember, all businesses raise prices. I hope this helps you prepare for the upcoming year and realize how important it is to set small annual increases to your services and retail.
Warmly,
Laura Y.
ProfessionalStore.com – Digital Education Manager
BONUS: Briana Cisneros has a message for you on charging hourly!