Is It Time to Increase Your Pricing? Here is Some Advice.
Have you been considering increases your prices? Here are two indicators that you should increase the prices of your service.
Are you in high demand?
I have a task for you, check your past booking history for the last six months. Were you consecutively booked for the last 6-months? If you look at the past six months, and you were booked 85% of the time that you were open, that is an indicator that you are in high demand. Now, when did you last increase your prices? Maybe it’s time.
The next step would be, asking yourself how much am I supposed to increase? A good rule of thumb is to stick around a 10% increase in your prices every six months. This method allows you to progressively grow your income, without overcharging your clients. This method also allows you to get your clients ready for the next stages of your development period. Some stylists and salon owners wait too long to increase their prices and don’t follow this method. Set reminders into your calendar to review your booking history so you can stay on top of your pricing and your booking rate.
So you recently took a class to enhance the services you could offer to your clients. It is important to take the cost of those classes and include it in your pricing model. So for example, if you’ve taken a color course in the last month, you want to establish ahead of time that you’re going to increase your color pricing or include additional service charges. Ensure your increases are aligned with the particular course you have taken.
Say you’ve taken a new balayage technique course, this is an opportunity to 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 charge, it is an increase to your price because you have now added more education to your belt. Every time you or your stylists take a course, you should be putting that into your pricing model to not only get a return on investment but to allow your sales to grow at the rate that education is being completed.
Incentivizing education is a great strategy to set you and your staff up for success and allow for a consistent increase in pricing as you continue to grow your salon.
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 friendNina Tulio of 1N Agency. Nina has an amazing outlook on when it is time to increase your 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. To grow our business, we have to grow our numbers. As long as you check out these two indicators, facts speak louder than words.