Was there ever a time that you wanted to raise prices, but you were afraid your customers would leave you?
Raising your prices is an absolute must if you want to grow your business. Although you might not be ready to increase your prices today, it is something you will eventually want to prepare for.
Informing your customers can be difficult, but if you find that you are booked more than 85% of the time, it will only hurt your career not to charge the true value of what your services are worth.
WHEN SHOULD I RAISE PRICES:
- Raising prices should be done without fear, it is something that can’t be done just because you feel like it.
- Consider doing it when your demand is higher than your supply.
- Your salon must be fully booked at least 85% of the time or about 3-4 weeks in advance in your schedule.
- Raising your price prematurely or when you don’t have enough people to fill in your schedule will just ruin your current clientele and cause you to lose more business.
GIVE CLIENTS PROPER NOTICE:
- It is standard practice to give your clients a month’s notice.
- They need time to adjust to the idea so they aren’t caught off guard.
- Run an email marketing campaign that includes the exact date the price increase that will take effect and a list of services with their new prices.
- Keep your messaging positive and be prepared for questions.
- Instead of increasing prices to ALL clients, you can choose to charge 15% more to new customers, but only 5% for your regular customers.
- This can be just a temporary discount, but it shows that you value your regulars and you’re committed to providing them with the best experience possible.
- Focus on benefits. Clients are more likely to accept a price change if they can see how it benefits them.
- Talk about how your new prices will allow you to hire more staff, offer more services, and have more appointment availability.
- During the week of the price change, show your clients you appreciate their business by offering an additional discounted service as an add-on.
- It’s important you make your decision confidently while still making your clients feel valued.
- Be polite and understanding.
- Remind them how this change will benefit them and try not to take their grievances personally.
- Believe it or not, most clients will expect prices to raise and although they may be upset at first, they will usually be understanding over time.
- Don’t take complaints personally.
- You’ll always receive complaints from frustrated customers. It just happens.
- Your reaction to these complaints will determine whether they stick with you or not.
- Don’t talk about the cost of living or your increasing bills when explaining the “why”.
- An important fact to accept is, once you do increase your prices, you can expect to lose about 10% of your clients.
- This is a good thing. It is time to start replacing these lost clients with your ideal clients who intend to spend more money.
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