Need advice on major price increase

[alpina]

I have just gone over my figures for last year and recalculated my salon running costs and realised that I need to increase my prices by A LOT. I've known for a while that I need to be charging more but have been reluctant to have a major price rise.

My business has hit a few bumps in the past 12 months, including a move to a new location, major loss of clients due to ex-staff member and the hard financial times. I'm frightened to increase my prices right now as I can't afford to lose any more clients, however I can't afford not to either. My current prices are on the cheaper end of the scale compared to other salons in the area so I do feel that our location is able to support a higher priced service.

Does anyone have some advice or ideas for me please.

 

[Redduck]

If you're making a big increase why don't you explain that wholesale costs have jumped so your prices are reflecting that increase. Then, once you've done the big price increase I'd definitely think about putting your prices up annually even if it's just by £1 or £2 as people don't seem too bothered if it's just by a couple of pounds.

Also, give clients plenty of notice. I've been telling my clients since January that there will be a small increase in prices in April.

Hope it goes well and your business gets back on track.

 

[staceymackey]

I would focus on adding perceived value to your treatments. Adding hand massage during colour or mini pedi during facial etc may cost you little in product but add great value from clients point of view.

Work out your lowest cost services and focus on adding these into services where therapists are at a loose end.

I would also consider reworking whole menu, possibly renaming some treatments (if this is how your menu is setup) so that no direct comparisons can easily be made. Provide descriptions of the treatments making sure to include the new features! Hth!!

 

[Lush-Lash]

I've just put my spray tanning price up by £2.50 per person. I'll put it up again next year maybe by another £1 not sure yet I'll cross that bridge when I come to it. I'd say just go for it. Prices rise all the time it's a part of life x

 

[Dolly6410]

I would focus on adding perceived value to your treatments. Adding hand massage during colour or mini pedi during facial etc may cost you little in product but add great value from clients point of view.

Work out your lowest cost services and focus on adding these into services where therapists are at a loose end.

I would also consider reworking whole menu, possibly renaming some treatments (if this is how your menu is setup) so that no direct comparisons can easily be made. Provide descriptions of the treatments making sure to include the new features! Hth!!

i love this idea! people love a 'freebie' even though its not actually free! when i do a facial whilst the mask is on i ask if they would like a hand or foot massage (we got taught to do it in college) whilst the mask sets and they sound so suprised, 'Oh wow! a hand or foot massage' a wee bit of cream is your only expense! thanks staceymackey i'm going to do this when i put my prices up!