I know that most salon owners and their stylists don't want to hear this, but NOW IS THE TIME TO INCREASE YOUR PRICES. Wouldn't you agree with me that the price of everything is going up? Why shouldn't it be any different with your business? It just makes good sense to increase prices on an annual basis.
My rule of thumb for price increases is to increase annually and to do it right now before we get into the busy holiday season. Right now... the first part of November. Get those price increases in and take advantage of the increase now, when you are busy. The second time I recommend raising prices is when a stylist increases by a level or is 60% booked.
I have never ever heard of a salon that did a 3% to 10% increase in prices and in the end felt that it was a mistake. Never! If you have a different conclusion, I would like to hear it. Sure, you may lose a few clients but think about it. If you increased prices by 5% and lost 5% of your clients, you would still be making the same money but working less. What is wrong with that?
I know that when we owned our salon and increased prices, we would have a few clients go elsewhere but for some reason we always got busier. Maybe people thought that since we were at a higher price we were better. I don't know, but that is my experience.
Most salons are working on a small profit margin to start with. It's time for you to get paid what you are worth.
So... Just Do It!!!
