Is It time to Increase Your Pricing? Here is Some Advice.
You were consecutively booked for the past six months. Establish when it’s time to increase your pricing. If you look at the past six months, and you were booked 85% of the time that you were open, it’s an indicator that you’re in high demand. Maybe it’s time to increase your pricing.
The next step would be how much am I supposed to increase? My pricing period is a good rule of thumb to stick around a 10% Mark, 10% increase. Every six months allows you to consecutively grow without grossly overcharging your pricing and getting your consumers ready for the next stages of your development period. Some stylists wait too long and don’t follow this method, and some salon owners don’t stay on top of it. So make sure you don’t fall into that category. Check your past booking. And that six months at 85%, you are now ready for your new pricing increase
Education. So you’ve recently taken a course or a class to enhance what you could offer to your consumers. It’s important to take the cost of those classes and divide it into your pricing model. So for example, if you’ve taken a color course in the last month, you want to establish what you’re going to increase your color pricing, aligned with that particular course you’ve taken.
Say you’ve taken a new balayage technique course, create an add on, or create an upsell opportunity for you to charge the consumer for your new technique. Whether that is an additional $10 or $30, it’s an increased price for the fact that you have now added more education to your belt for salons and salon owners. Every time your stylist takes a course, you should be putting that into pricing structure to not only get back a return on investment but to allow your sales to grow at that rate, the education is being performed.
Incentivizing education is a great strategy to set you and your staff up for success and allow for a consistent increase as you continue to grow. These are just two indicators of how to measure when it’s time to increase your pricing and set you up for success. If you are taking classes or you are fully booked, and you’ve been booked for the last six months, it’s time to explore that new pricing increase. It can be a little bit tough, so I suggest taking some lessons from our good friend Nina Tulio of 1N Agency. Nina has an amazing outlook on when it’s time to increase that pricing, as well as advanced salon education. It’s important to remember that pricing doesn’t have to be so scary, we are business owners after all. And as long as you check out these two indicators, facts speak louder than words. It’s time to cause actions to your success behind the chair.