How can you increase prices in your salon without losing your customers?

Increasing the price of your services is a delicate and highly strategic operation. Indeed, there is often a fear of taking action and then losing customers or not knowing how to communicate this price increase, which is often poorly considered by some customers.

Nevertheless, this can have positive repercussions for your hair salon or beauty salon. 

If you have never raised your prices before, this can be a daunting step to take. There can be a lot of confusion about what justifies the change, its feasibility and how to effectively communicate your new prices to your customers. 

You recognize the opportunity, but don't know where to start? Here are some tips on how to increase the price of your services without losing your most loyal customers


Reasons to increase your rates in your hair salon or beauty salon

The cost of living is rising 

Let's start with a hard but unavoidable fact. The cost of living is rising every year due to inflation. What was a reasonable price 12 months ago may not be reasonable today. The price increase decided by your salon is therefore necessarily legitimate. If operational costs increase, it makes sense for your prices to increase with them.



Your products and services are more complete

Your prices being inappropriate does not mean that you initially set them incorrectly, it is simply because your services change, as does your price list. You may have bought new equipment, started using more expensive products that guarantee better results, started offering niche services, expanded your service card or hired experienced staff who have really enriched your salon. 

Remember that by paying for your services, your customers pay for your expertise, knowledge and customer experience in your salon. As a hair salon, beauty salon or barbershop, there is a need to stay as close as possible to the trends in the industry. 

If you are aiming for strong growth, you may need to increase your prices to be able to adapt to the demands of the hair and beauty industry, ultimately winning new customers while retaining your existing base. 



Gradual financial losses of unknown origin

Detailed reporting on your salon's finances is vital because it allows you to notice changes that are both rapid and gradual. Perceiving a disruption in cash flow and understanding the reason for it at an early stage is the only way to contain a future crisis, so get a tool that provides detailed statistics and simply run your salon.

When you see a decline in your finances, and you can't find any possible cause for it, it is possible that your prices are inappropriate, given the costs you are incurring.


Our advice to increase your prices without losing your customers 


Study your competitors' prices.

Study how your competitors' prices have changed in recent years. If most hair and beauty professionals have increased their prices, customers will be more willing to change. However, if you are the only one to do so, you will need to provide a unique, comprehensive and different service.



Communicate and be transparent 

There is no need to go into excruciating detail about your profit margins. Just share the basics of why you are raising your prices, focusing on thebenefits to the customer, such as expanded product offerings or additional and better services.

When you announce the rates for your new salon, be prepared to answer any questions your customers may have. Taking the time to talk with them will make the whole process easier. 


Consider your target and existing customers

Who are your customers? Access your "customer file" feature where you have all the information on your customer's age, appointment history, retention rate and "purchases". Thanks to this information, you will be able to create the "customer profile" of your establishment: a description of a user of your services (What is their age? How often do they visit you? Which services do they choose? How much money do they spend on average? Do they buy resale products)?

By examining these criteria, you will be able to determine whether or not the price increase is reasonable for your customers.


Structure your price increase so that your loyal customers will accept it.

Keep existing customers at the current price level, but charge higher prices for new customers. Make sure that existing customers feel special by telling them that they are gettingpreferential treatment

"As of April 1st, we will increase our prices. However, as a long-time customer, you will benefit from the old rate for the next 6 months."

With careful planning to inform customers, you'll find that a price increase not only increases your sales, but can transform your establishment. It would be a shame not to raise your rates at the right time to ensure the financial health of your hair salon or beauty salon. But remember, while it is important to make a profit, any increase in your prices should be defensible. Otherwise, your customers will think that you are simply trying to make more of their money and will end up going to the competition.


Increase your turnover and optimise your establishment's cash flow by calling on our experts. To find out more, contact us today and take advantage ofa free demo!




Written by
Farah
Interested in beauty and hairstyling, I am Content Manager at Wavy. I am delighted to be able to share my discoveries in this sector with you today.

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