Jeni Giles
Well-Known Member
OK, now we all know what a client is worth, we've re booked, our clients are coming out our ears and we're going nuts trying to fit every one in. Here is the hardest thing for someone in the service industry to do. Raise your prices!
Don't just raise them out of the blue, post a flier or include it in your after care leaflet. I know you are probably falling off your chair, your blood pressure has increased and you are nearing a panic attack thinking "Raise my prices? I can't raise them, I'll lose my clients!! They can't afford that!" You're right. Some of them can't, they may choose to go to another salon, or fore go having their nails done. This can help you in a couple of ways.
1. If your customer service and technical skills are top notch and they go to a lower end salon where they don't get the same service they will be back. Clients appreciate being taken care of, when they are educated about what to expect they usually return to the place they were taken care of.
2. Losing a client makes room for some one new. If you are turning down appointments or working extra hours to accommodate people losing one client will open a place during your "normal" working hours for some one new.
3. A price increase of a small amount- usually 3% per year, that's the estimated rate of inflation- will cover the dollar amount of the clients you lose. Generally a small price increase will cost you about 2-4% of your client base, a 3% price increase usually a dollar or two will cover the amount of loss and allow room for a new client at the increased price.
One other thing to consider is how much are you worth. Are you charging and adequate price to begin with? Take the time to make a list. Put down in writing the amount of money spent on product in one month, the time you spend at work and how much money you bring in. With these numbers, subtract the cost of product; you have to have product to work, then look at how much is left, divide that by the number of hours you worked to get it, that is the amount per hour you make. Most artists forget that little step, they think "well I charge xxx per service and it takes me an hour so I make xxx." They forget they have to pay for the product for each service so in reality they make about 1/3 to 1/2 that amount.
The cost of product is on the rise as is shipping and handling, the distributors and shipping agencies pass these costs on to you. They are the cost of doing business, unfortunately we must pass these costs on to our clients, if we continue to pay for the increases passed to us with out increasing our prices to cover them we price ourselves out of business.
"Every one in my area charges ---" Do they attend the same classes? Are they as qualified? Are their sanitation and disinfection practices being done correctly? If you answered yes to all of those, then you probably need to charge something similar, but maybe add a little something extra- a quick hand massage, a thank you card, a pinkie of oil, something to set you apart so that when your clientèle is established you can increase your prices just a little higher than the others in your area.
Be very careful not to judge your client by what you think their pocketbook contains, some of the wealthiest people got that way by being conservative in their everyday routine. Most of us are willing to spend a little extra on something that makes us feel great, you know what you are worth, be sure to charge for it!!!
Don't just raise them out of the blue, post a flier or include it in your after care leaflet. I know you are probably falling off your chair, your blood pressure has increased and you are nearing a panic attack thinking "Raise my prices? I can't raise them, I'll lose my clients!! They can't afford that!" You're right. Some of them can't, they may choose to go to another salon, or fore go having their nails done. This can help you in a couple of ways.
1. If your customer service and technical skills are top notch and they go to a lower end salon where they don't get the same service they will be back. Clients appreciate being taken care of, when they are educated about what to expect they usually return to the place they were taken care of.
2. Losing a client makes room for some one new. If you are turning down appointments or working extra hours to accommodate people losing one client will open a place during your "normal" working hours for some one new.
3. A price increase of a small amount- usually 3% per year, that's the estimated rate of inflation- will cover the dollar amount of the clients you lose. Generally a small price increase will cost you about 2-4% of your client base, a 3% price increase usually a dollar or two will cover the amount of loss and allow room for a new client at the increased price.
One other thing to consider is how much are you worth. Are you charging and adequate price to begin with? Take the time to make a list. Put down in writing the amount of money spent on product in one month, the time you spend at work and how much money you bring in. With these numbers, subtract the cost of product; you have to have product to work, then look at how much is left, divide that by the number of hours you worked to get it, that is the amount per hour you make. Most artists forget that little step, they think "well I charge xxx per service and it takes me an hour so I make xxx." They forget they have to pay for the product for each service so in reality they make about 1/3 to 1/2 that amount.
The cost of product is on the rise as is shipping and handling, the distributors and shipping agencies pass these costs on to you. They are the cost of doing business, unfortunately we must pass these costs on to our clients, if we continue to pay for the increases passed to us with out increasing our prices to cover them we price ourselves out of business.
"Every one in my area charges ---" Do they attend the same classes? Are they as qualified? Are their sanitation and disinfection practices being done correctly? If you answered yes to all of those, then you probably need to charge something similar, but maybe add a little something extra- a quick hand massage, a thank you card, a pinkie of oil, something to set you apart so that when your clientèle is established you can increase your prices just a little higher than the others in your area.
Be very careful not to judge your client by what you think their pocketbook contains, some of the wealthiest people got that way by being conservative in their everyday routine. Most of us are willing to spend a little extra on something that makes us feel great, you know what you are worth, be sure to charge for it!!!
