Do you know how much it costs to open your salon each day? Are you aware of your break-even number? These are the numbers you need to know when you implement a price increase in your salon. If your takings aren’t getting you past this number you need to think about increasing your prices.
Gain an Understanding of Your Costs
It’s important to review your current price list and establish ways in which you can raise prices to cover costs and increase profit. However, you want to avoid scaring clients off with considerable changes to what you offer, so it’s better to put up your prices in small increments on an annual basis.
Unfortunately, the price of living has gone up, and with this in mind, the habits of customers have changed over the last few decades. Yet, within the hair and beauty industry, there’s still a reluctance when it comes to raising prices.
Understand Your Finances
Before you decide to change any facet of your pricing, make sure you understand your running costs. Many salon owners are hesitant to change their prices due to not fully understanding the finances of the business. However, if you fully understand the costs involved in running your salon, you can justify price increases without feeling guilty.
Many suppliers increase their prices annually, so without implementing a price increase in your salon, you could see your bottom line decrease.
Make Your Treatments Worth It
If you’ve discovered that you must increase your salon prices to have a profitable business, ensure the service you’re providing is top notch. If your clients can see the value of the service you offer over your competitors, they will be happy to come to you and pay for your products and services.
When increasing prices, avoid apologising, but do explain why you are putting prices up. Remember, investment in new treatments, training, online booking systems, and card payment machines all cost money and are often forgotten by clients.