Raising the prices of your services is a sensitive subject. On the one hand, it’s important to set your prices based on your experience and the value of your time. On the other hand, there is the valid fear of losing clients. After all, price is an important factor when clients are choosing where to get their services.
Fortunately, there is a way to raise your prices without hurting your beauty business. But how do you know how much to raise your prices and how to communicate the change?
Let’s start with the facts: the cost of living increases every year due to inflation. What was a reasonable price 1 or 2 years ago may be well below the market rate today. If your operational costs increase, it only makes sense that your prices should increase accordingly.
Having detailed reports on your business finances is essential because it allows you to notice changes in performance as soon as they happen. Fluctuations in cash flow can be a normal part of doing business, but patterns of underperformance should not be ignored. Having a tool like Stats & Reports from Booksy allows you to track this data in real-time and act on it immediately. For example, if you are consistently bringing in less than you need, then your prices may be too low to cover your operating costs.
Do you remember the last time you updated your price list? Two years ago? Maybe five? Not since you started? It’s easy to forget, especially when you’re busy with clients day in and day out. If it’s been a moment, it’s probably a good time to reevaluate and consider charging more for your services.
Whenever your services change, or you learn new skills, your prices should change as well. Think about all the improvements you’ve made to your business and your skills. Maybe you’ve acquired new equipment, gotten certifications, upgraded your products or services, expanded your service list, or added staff members with new expertise. When a customer pays for your services, they are paying for your training, knowledge, and experience. Positive changes in the quality of your service should always be reflected in your pricing.
The definition of an exclusive service can vary from place to place. Something that is considered unique or rare in one area might be common in another, so it’s always important to know your local market. As a general rule, if you offer something that other salons in your area do not, and there is a demand for that service, you are offering a valuable or exclusive service. And you’re entitled to charge a higher price for that service.
First, evaluate your business in a realistic and objective manner. What is the value you provide to your clients? Is your current pricing competitive? Do you provide exceptional customer service? Remember that you’re in the service industry, so it’s important that your client experience reflects your experience and training. You could have over 20 years of experience and the most impressive credentials and still deliver a poor client experience. Always put yourself in your client’s shoes and think about how they would experience your business.
That being said, always evaluate your business from the perspective of your clients. Analyze the feedback you receive, both positive and negative. As long as you are providing quality and value, most of your clients will happily pay a little extra for your services.
Aside from your personal credentials, you also have to consider your expenses, the economy, your hours of operation, payroll, and so on. That’s why asking your online group of beauty professionals how they would price a service will not give you an accurate idea of how you should price yours. Instead, look into similar businesses in your local area, who are likely to have similar expenditures as you. This should give you a good ballpark estimate for how to price your services.
Who are your clients? That depends on what information you have access to. In your Booksy Client Card, you can view your client’s appointment history, frequency of visits, retail purchases, and even use Client Tags to record any other information that you want to remember. Thanks to this information, you can create a profile of your average client. What is their age range? How often do they visit? What services are most popular? How much do they spend on average? Do they purchase retail? Examining these factors will help you determine what dollar amount price increase would be reasonable for the vast majority of your clients.
By raising your prices, you are not doing anything bad, and you don’t need to justify your reasons. However you choose to announce this change, do make it easy for your clients to understand your decision but don’t make it sound like you are sorry for making this change.
Your announcement should:
It is always in your best interest to be transparent about any price changes, to avoid awkward misunderstandings with clients. We recommend that you:
To save time and cut down on communication, use Booksy’s Message Blasts to send a quick announcement to all your clients. Then, head to Social Post Creator to share the update directly to your social media accounts.
Whenever you make a major change to your business, it’s always possible to lose some clients. Instead of worrying about losing clients, shift your mindset and consider that you may also be gaining clients who are more interested in your current offerings or who can afford to pay more for your services. Not to mention, higher prices should allow you to make up for the loss of a few clients.
After implementing the changes, be sure to track your business performance closely. You can check all this data at a glance on the Stats & Reports feature on your Booksy app. An advanced salon management system with detailed financial reporting and client communication tools is your best partner during the process of raising prices in your salon. Try it today and see the difference for yourself.
