Five Reasons to Take Another Look at Your Salon Prices
All things considered, increasing your salon prices can create stress and uncertainty.
It subsequently might be something you are avoiding or have tried already but you haven’t managed the change successfully.
If that is you, this blog gives you five things to look at before deciding what needs to change in your pricing.
WHAT WOULD A PRICE REVIEW HELP YOU DECIDE?
It is easy to collect reasons for putting your prices up, especially when costs have risen or you want more from the business. But those reasons need a closer look. A full appointment book, a customer saying “It’s cheap” and a service that no longer covers its costs are different starting points.
Let’s look at five reasons to review your prices and what each one can help you understand. The aim is to choose a change that fits the work and what you want the business to support.
As you look through the five areas below, ask what each one tells you about your own salon.
One of these signs may be enough to make you take a closer look. It is a prompt to review your pricing, rather than proof that a price increase is the answer.
The equally important step is looking at what you are doing now compared to how you can upgrade what you have been doing.
Basically, the most important business strategy is to…
Not just rework your existing pricing but remodel and realign.
Why…
Because a price review is more useful when you know what you want the business to make possible. Revisit your salon vision and see whether the way you work still fits.
Your business and the way you want to work can change. Take some time to decide what you want that to look like in your salon.
Remember it’s the small incremental changes that successful businesses make that get them closer to their goals.
Like a plane that might just be 1 degree off course. That seems small right but every hour that could mean you are way off target.
So what questions can you ask yourself to decide on the small changes you could make that would keep you on track to get to your destination?
Do you need to take a customised approach to pricing?
Do your services need to be updated in the way you talk and communicate about them?
Do your team need some upskilling to meet the new trends?
Would a simpler price list make your services easier to explain?
Do you need to get different products to get different results?
Have you outgrown some of your current products and services?
Are you making decisions that fit your salon vision, or saying yes to things you no longer want to offer?
Small, considered changes can help you keep moving towards your goal.
FIVE REASONS TO REVIEW YOUR SALON PRICES
#1 IF YOU ARE BOOKED UP, LOOK AT WHAT THAT BUSY WORK IS GIVING YOU
Being booked up means different things to different people and how much you want to be busy is totally part of your vision which is why I recommend you do this exercise at the beginning.
What is it you actually want?
What does being booked up look like for you and your salon?
If you have started to reach that vision, look at your prices alongside the time, costs and work involved. Being full does not tell you on its own whether the salon is giving you the income or working week you want.
#2 CUSTOMERS ARE GETTING IMMENSE VALUE AND SAY YOU ARE DOING SO MUCH FOR THE PRICE
The second sign (and this is a major one) is when you tell people your prices and they respond…
“Oh, it’s so cheap.”
That is worth noticing, especially if it comes up repeatedly. Check whether people understand what is included and whether your current price reflects the service you actually deliver.
Ask yourself ” Is my current pricing detrimental to my brand?”
If talking about the price feels uncomfortable, notice that too. But a customer saying “It’s cheap” is not a calculation of your costs or profit. Check the service before deciding what that comment means for your pricing.
#3 REPEATED REQUESTS AND EXCEPTIONS ARE WEARING YOU DOWN
If you are dealing with repeated requests for discounts, extra time or exceptions to your booking procedures, it can wear you down.
Are customers:
Asking for discounts?
Wanting you to make extra time for them?
Asking for special payment arrangements?
Moving appointments frequently or questioning booking and cancellation fees?
Boundaries with customers can be a challenge. I strongly recommend working through these issues with your team.
Are the expectations clear before the appointment? Are you explaining and applying the agreed procedures consistently? Is the service still a good fit for the customer and your business?
You deserve a working day where your team and customers are treated respectfully. A higher price alone will not establish those boundaries or guarantee different behaviour.
Read more about this in the Customer Guilt Trap article.
#4 YOU HAVE DONE EXTRA TRAINING AND ARE DELIVERING SO MUCH FOR YOUR CUSTOMERS AND GETTING AMAZING RESULTS.
When you invest in your skills, look at what has changed in the service. Are you providing a result you could not offer before, taking different care or using different products? Those are useful things to consider in the review.
Consider what the extra skill changes for the customer and how it affects the service you now provide.
If you and your team are delivering those results consistently, make sure the way you describe and price the service reflects the work. Explain the difference so customers can understand what they are choosing.
Simple.
Give the time and effort you have put into your skills proper consideration when you review the service.
#5 YOU WANT TO EARN MORE MONEY
Nobody else is going to give you permission. You have to claim it for yourself.
Ask yourself what would feel good to earn, even if it feels a little bit scary, a little bit exciting…?
You might feel scared, you feel like no one’s going to pay it.
You can decide to change your prices, but give the decision some proper preparation. Check what the change needs to achieve, explain the service clearly and make sure your team know how to talk about it.
Let customers know the actual price or price basis before they commit. Then review what the change made possible for your business, rather than assuming a higher price automatically brings the customers or profit you want.
Come back to your prices when the work, costs or what you need from the business changes. You may decide on an increase, a different service allowance or a clearer explanation of what is included. The review helps you choose what fits.
