Thinking of increasing prices slightly (sunbed salon)

[chreewebb]

Hi there, my tanning salon has been open almost 2 years now! When opening, I set my prices very competitively to help me gain clients! (maybe a bit on the cheap side). Between the 5 closest salons to me (my competitors) I am priced the 2nd cheapest. However I really do believe my salon and its cleanliness/service/sunbeds are worth more. I've been working most of the hours myself and it's beginning to wear me down a bit! (long hours!) This Spring/Summer I am also hoping to start opening even longer as I know my customers would like it if I did. So I am hoping to employ someone with more of a permanent position! However this means it will cost me more money, so I am hoping a slight price increase (about 10%) will help cover these costs and help me make the salon even better! When is the best time to do these increases? I was thinking early January when I am quieter as it might not be as much of a kick to the clients as I really don't want to upset anyone! I'm told quite often when going through prices with new customers how cheap I am and I still believe with the slight increase it is still great value for money and I'll still be cheaper than most of my local competition! I'm coming up to my 2nd birthday at the end of January. What's your guys' thoughts? Thanks a lot!

 

[PamieD]

The sooner the better, there's never a best time imo. Maybe put a notice up now and then put them up 1st Jan. Worth keeping an eye on who stays and who goes somewhere cheaper, good way to profile the kind of clients you want to target.

 

[jacquelineanna]

I would put up a sign along these lines (this is my style which would not suit everyone) -

To our lovely clients
Please be aware that our prices will be going up on 1 January 2016.
We have absorbed the suppliers annual increases for the last two years in order to keep the prices stable but cannot sustain this any longer.
May I also take this time to thank every single one of you lovely guys and gals for helping us grow our business.
We hope to see you all in 2016.
Peace and respect xx

 

[Beckybee]

I would put up a sign along these lines (this is my style which would not suit everyone) -

To our lovely clients
Please be aware that our prices will be going up on 1 January 2016.
We have absorbed the suppliers annual increases for the last two years in order to keep the prices stable but cannot sustain this any longer.
May I also take this time to thank every single one of you lovely guys and gals for helping us grow our business.
We hope to see you all in 2016.
Peace and respect xx

I like it ^

If I liked the salon and staff it wouldn't detur me if there was a price increase.

You could wait until fitting new tubes and use that As an excuse.

Personally I don't believe in trying to be one the cheapest of everything.. We need to make a profit, to pay our wages, bills and rEmplacement equipment when needed.

Out of interest what's the price difference between the cheapest and the dearest? Is it much?

 

[blossom]

I spend ages worrying about if and when to increase prices. Still do.

Yet in 12 years I've never lost anyone by doing so and a lot turn round and say "I wondered when you were going to put your prices up, they've been the same for ages" lol

Currently cogitating on a new year price hike

 

[chreewebb]

I like it ^

If I liked the salon and staff it wouldn't detur me if there was a price increase.

You could wait until fitting new tubes and use that As an excuse.

Personally I don't believe in trying to be one the cheapest of everything.. We need to make a profit, to pay our wages, bills and rEmplacement equipment when needed.

Out of interest what's the price difference between the cheapest and the dearest? Is it much?

Difference between the cheapest to dearest is about an 80% increase! I will still be very very competitively priced and still cheaper than most. Thank you

 

[chreewebb]

Thanks everyone for your help and suggestions, I'm thinking of doing a special offer for the month of January to go along with the new prices to kind of make it less of a hit to my clients.