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Price Increases: 6 Ways to Ease the Transition

November 29, 2012

With 2013 coming up, salons and spas should be evaluating their sales and profits this year and may consider a price increase. You can raise your prices as often as you wish, as long as you can justify the increase to your clientele. Anytime you invest in renovating your salon, add to your staff’s technical knowledge and training, or increase the quality of your customer’s experience, then you have reason to increase your prices.. Finally, you are entitled to raise your prices annually by at least 3% (the cost of living index) 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.

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 or spa.
  • Be clear and firm on the new price start date; don’t falter under criticism or pressure.
  • Be sure to apply it across the board, for every client, with no exceptions.
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