Personal and professional growth are equally as important as financial growth. With financial growth comes a little bit of strategy in order to ensure your long-term success! One of the key ingreidents to finanical success is keeping up with inflation.
Here’s the truth, not keeping up with inflation year after year is one of the reasons your salon is struggling. Plus, the rise in inflation in 2021 alone didn’t make it any easier.
How many stylists have you heard say, “I haven’t given myself a raise in 3 years!!”
That’s heartbreaking to hear.
Before we can get ahead of inflation, we have to understand what it is.
Inflation by definition is the progressive increase in prices of goods and services in an economy.
On average inflation is around 2% year to year. But in Canada and the US this past year it was more like 5.5% which is a BIG jump!
1. Plan to Adjust with Inflation
That might come off a bit as a surprise, but it doesn’t have to be a big jump every year. It can be incremental. Just like inflation, it can be a small increment each year.
It can be as easy as adding your color on top of what you currently charge. Or incrementally updating your color and labor pricing a bit each year. This will remove the fear salons feel around having to do a large price increase every few years in order to not be set back.
Knowing that on average prices generally increase around 2-3% each year, allows you to plan ahead.
Inflation isn’t apologetic. So why should you be? This is your career and your livelihood. Not increasing your pricing will continue to set you back.
2. Cover Your Costs
Now you might be saying, “I’m sorry, what?”
SalonScale makes it easy to do this. The last thing you should be worried about with color is (1) you’re charging enough and (2) if you’re even going to be able to afford to buy more color *cough* inflation *cough*.
Adding a mark-up to ensure that you’re covering the cost of the color, you’re able to replenish it, you can cover the cost of foils, brushes, PPE and more! But it also helps to provide you with a safety next in case, well color prices drastically increase again.
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Summary
When inflation happens you don’t want it to be such a big shock to your bank account and you don’t find yourself scrambling! With these two tips we’ll ensure you’re ahead this year and every year to come.
Learn more about how SalonScale helps you to get ahead of inflation!
Book a consultation with one of our SalonScale experts today!
