Your salon is busier than ever, you’re hiring more staff, and the cost of maintaining inventory has grown. So, it’s time to increase your service prices. But how do you increase your service prices without scaring off your loyal clients?
The cost of goods and services is always changing. However, price changes can still be shocking for long-time clients. You must increase prices to keep up with the growing costs of RETAIL, RENT, EXPENSES, AND PAYROLL. Loyal clients continue to visit your business because you make them feel comfortable and they trust you. Being transparent with them by communicating these changes well in advance can help maintain your relationship. How you communicate the message is equally as important as the communication itself. Let your clients know that because of them, your business continues to grow, and with that, comes changes like a new product line, equipment and a new pricing structure. Make increasing your prices a positive event, rather than a negative event.
Another great example of when prices may increase is when a stylist or service provider is promoted. Promotion tends to be based off an 85% or higher productivity rate. (If you’re a Millennium client, use the MA200 report to analyze your service providers’ productivity.) If productivity is over 85%, your service provider is no longer “productive”; clients are unable to book them because they are too busy. By increasing prices for your newly promoted service providers, some of their clients will choose to move to other service providers, freeing up space in their appointment book. You can also use the Missed Opportunity report to view the reasons that clients were not able to book appointments with specific providers. If it is because the provider is unavailable or overbooked, you will want to increase prices.
Use your client selection feature to filter out active clients with emails on file. Send emails to these clients regarding the new pricing structure a few weeks out from when the changing will go into effect. The pricing changes should be visible within your salon or spa, and your team members should also be open to communicating them in conversation.
Depending on the pricing structure of your business and the services you offer, you can “grandfather” loyalty program members into a set service or membership price. You could also incentivize clients to sign up for current membership rates before they increase. Offering tier pricing can help ease the transition as well since tier pricing gives your clients several pricing options.
In order to maintain the health of your business in this ever-changing economy, price changes are inevitable. Instead of focusing on the possibility of upsetting your clients, focus on how to positively convey the message.