How to Raise Your Prices
Are you considering raising your prices as part of your strategy this year? Do you want to know more about how to successfully raise your prices?
A well-considered price change can help you cover the work involved, pay your team and work towards the income you want from the business.
It needs to fit the service you deliver and what your numbers are telling you. A higher price alone does not guarantee more profit, customer respect or team confidence.
We are here to serve, but not be slaves
As salon owners, we are also in the game of creating and giving value. We can face internal resistance around raising our prices and the perceived value of the problems we solve for our customers.
GIVE YOUR SERVICE THE PRICE IT NEEDS
Some customers may choose a different option after a price change. That can be difficult when you have worked hard to build those relationships. Their decision may be about budget, timing or what they need, rather than a judgement of your worth.
That can still feel hard when you have worked so much to build the salon. Give the business decision and your feelings about it some attention, without treating a customer’s choice as a verdict on you.
Money can bring up uncomfortable thoughts and feelings, and those can show up in different ways.
What does the service need to cover: the time, products, team pay and wider costs of running the salon? Then consider the income and working week you want the business to support. Those give you a basis for the review. Your value as a person is not what you are pricing.
It can help to notice what you tell yourself when you explain a price. Are you apologising before the customer has even responded? Are you assuming you know what they will be willing to spend?
Notice the thought, then come back to what you know about the service and the person in front of you. Their answer gives you more to work with than a guess.
Think about when someone gives you a compliment. Do you accept it politely and say thank you, or do you brush it off? Accepting the compliment makes everyone feel good.
Are there salon owners you aspire to be? Do you want to have a business like theirs? You may admire the way they present their services, but their prices and social posts will not tell you what profit their business makes. Do you know how profitable your business is?
If talking about the price feels difficult, which part needs your attention: deciding the price, explaining what is included or responding when someone chooses differently?
STEP #1: REVIEW WHAT THE SERVICE NEEDS TO SUPPORT
Your skill and the result the customer wants matter. So do the time and products the service requires. Explain what you are helping them achieve and what is included, then check that the price supports delivering it. Neither the customer’s budget nor another salon’s price answers that whole question for you.
Think about your ideal customer. Think about what matters to them, what your service helps with and how clearly you explain the price and inclusions.
We understand there can be some inner resistance and there are common questions we hear about raising your prices…
When should I raise my prices?
Should I tell my clients?
How do I handle customer resistance if it comes up?
Tell me how to own this prices increase and confidently express it
SHOULD YOU DO A GRADUAL INCREASE OR ONE BIG JUMP?
Regular pricing reviews can help you avoid leaving an increase until it feels overwhelming. The amount and timing still need to fit your service costs, the work involved and what you want the business to achieve.
If you use a starting price, explain what it covers and what could change the total. It should help the customer understand the service, rather than leave them unsure what they will pay.
If you have different stylist levels, make the prices and service differences clear. Customers can then consider an appropriate option with another team member if that suits them.
Technical services can vary from visit to visit. Discuss the work, time and price before adding something different. Do not assume the customer will be comfortable with a change because the previous bill was also variable.
When product or other costs change, review how they affect the actual service. Explain your new price clearly and give customers the information they need before they commit.
CAN YOU CHARGE MORE FOR CLIENTS WHO JUST WANT YOU?
A different owner price can be one option if your goal is to reduce the demand on your own diary. Work out a price that fits the service, explain any suitable alternatives clearly and let clients choose. Some may prefer another team member; others may choose to stay with you or go elsewhere.
In an earlier stage of my salon business, we put up an owner’s price and offered a membership rate to current customers who wanted to sign up… otherwise, they paid the increased rate each visit. Worked wonders at filtering out the clients and helped me, as the owner, transition to less time on the floor.
The clients that stayed were happy to pay the increased amount and they felt special. Your own decision still needs to fit your goals, the service and the options available to your customers.
HOW TO DEAL WITH RESISTANCE FROM CUSTOMERS
Some customers will have questions or may not want to continue at the new price. Listen to the actual concern before deciding how to respond.
If another suitable stylist or service is available at a different price, explain that option. You do not need to justify every expense in the business, but the customer does need a clear explanation of what they will receive and pay.
If they did not see your earlier email, explain the change now. An unopened email is not evidence that they do not value the salon.
Keep the conversation respectful. You can hold your price without making someone feel wrong for choosing differently.
HOW AND SHOULD I LET MY CUSTOMERS KNOW?
Let customers know the new prices and when they take effect. Keep your website, booking information and team explanations consistent, and make sure customers with existing appointments understand what applies to them.
Email can help, alongside the channels your customers actually use. Do not rely on an email being opened as the only way someone learns the price of an appointment.
If you choose to offer an opportunity to book before an increase, make the dates and conditions clear. It is an option for your business, not a necessary part of every price change.
WHAT ABOUT TEAM RESISTANCE?
If team members charge differently from the agreed price, find out what happened before deciding it is a confidence or attitude problem.
Was the service clear? Did the booking match what was actually done? Was a discount authorised? Did they know how to explain an extra charge before starting the work?
Agree what to do next and practise any explanation that was difficult. If agreed prices are still being changed without approval, address that directly through your normal employment process. Do not use an automatic pay deduction as a sales-management tactic.
IS YOUR BUSINESS MAKING A PROFIT?
This is the most important thing to consider.
Bring the mindset work, customer communication and team preparation back to the numbers. What needs to change for the business to support the work, your team and you? A price review is part of answering that question.
