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The Price is Right!…or is it?

June 29, 2011

Increasing Your Service Prices

You can raise your prices as often as you wish, as long as you can justify the increase to your clientele. The most unassailable justification occurs when you provide your clients with more value-added service. Anytime you invest in renovating your salon, add to your staff’s technical knowledge and training, or increase the quality of your customers’ experience, then you have reason to increase your prices. Another justification involves basic supply and demand. Whenever an employee’s column is full or your business can no longer accommodate additional clientele it’s time for an increase.

dollarThis applies to any service provider who has a high and stable productivity ratio, a great retention rate, good referral numbers and who performs well at retail. The market and your business’ positioning will indicate when you’ve hit the ceiling. Finally, you are entitled to raise your prices annually by at least 3%  just to cover the increase in your operational costs. Utilities, rent, insurance and products have all likely increased since your last price hike, so it’s time to catch up.

Implementing a Price Increase

Although no client is ever pleased to hear that they will have to pay more for the services they receive, there are several things you can do to help them adjust.

• A price increase should never come as a surprise; warn your clients in advance and in-salon only.

• Provide your staff with a script to help them explain to their clients the rationale and justification for the price increase. Never apologize for your new prices.

• Print your new price list and make it available to your clientele.

• Provide those clients who wish to maintain their current price point with an opportunity to transfer to another service provider within your salon / spa.

• Be clear and firm on the new price start date; don’t falter under criticism or pressure.


From → Pricing

  1. Excellent advice Alain, however todays economic increases are happening faster than I can absorb. With the onset of the discounting coupons, customers never ending appetite for ‘deals’ and other salons & spas, chasing the $$ we all have our work cut out for us. I am confident at our service structure, but the time it takes for the ‘masses’ to figure this out, DOES have an impact. We are also faced with the industry going further underground to make a buck at the expense of government, the salon owners, the stylists themselves & the negative image it leaves on the industry.

    Our industry is suffering on many fronts and I am (although) optimistic cautious. Love the dialog, keep up the great work.


    • Hi Ian, always great to read your comments and know that someone is reading my blogs. It is a very tough time indeed for the industry. The deal of the day craze is driving the consumer crazy for discount on everything. At the same time, people are getting burn really fast and many are not going back to the discount and find that to get good service you have to pay the price. I think the best scenario is to push for the high end – high value position. Less customers, more money per head…not easy to build-up, but when it is done, that segment of the market is very stable and no so discount prone. I like the things you do with your website and your facebook. You are very active and have a great amount of likers on facebook. Did you ever consider using QRcodes to have customers linking to your facebook directly from their phones at reception? Try it at By the way, are in Vegas next week?

  2. Some good pointers, very helpful indeed !! Keep them coming !!

  3. I just wanted to comment and say that I really enjoyed reading your blog post here. It was very informative and I also digg the way you write! Keep it up and I’ll be back to read more in the future

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