THE WAXOPOLITAN

How to Raise Prices in a Salon in 2021

 

When it comes to raising your salon prices, there are several things to consider in order to ensure that you’ll continue growing your business and keep your clients happy. In this article, we're not only going to talk about how to raise prices in a salon without losing customers, but we'll also offer tips on how to upsell salon services with booking minimums and why it can make sense to adjust your menu pricing to increase profits.

Why You Should Raise Your Salon Prices

Client paying for salon service to her esthetician

Many salon owners may take issue with discussing money, knowing their worth, and are apprehensive at the idea of raising their prices. 

The most common reason for raising salon prices is an improvement to your services or your overall client experience. 

Although most salons in the United States are open for business, your earning potential may be affected due to limited availability of supplies needed to run operations. There’s also the increased sanitation overhead due to the aftermath of COVID-19. Even if you or your clients have gotten vaccinated, by serving people you are increasing your exposure to the public and thereby potentially risking your health.

Woman sanitizing her salon business

Furthermore, industries worldwide, including the beauty industry, are experiencing shortages in supplies and materials. These shortages have caused massive drops in production time which have ultimately led to companies running out of inventory, even though product demands are rising. 

It's for these reasons that coming to terms with any hesitation as soon as possible may be in your best interest in terms of a price rise. 

How Often Should a Salon Raise Prices?

Your salon business should increase its rates every 12-18 months to keep up with inflation and service upgrades.

How Much to Raise Salon Prices

Esthetician calculating salon service pricing

Typically, salons should raise their prices anywhere between 5%-15% when they do a price increase. 

When considering how much to raise prices in your salon, it is important to be aware of the following: 

  1. How much does it cost to keep your salon business open?
  2. How much are your total expenses?
  3. What’s your break-even point?
  4. And of course, how confident are you with the value of your services when compared to their price?

By knowing this, you will have a clearer picture of how much you should be raising your salon prices. 

A Shift in Perspective

During these times, no one wants to lose clients, but if we shift our thinking from losing clients to choosing them, we can help protect our most substantial assets—our best clients. 

Clients who are understanding, supportive of your price increase, and  book the most services should be your top priority - Especially if you provide outstanding service and have a positive attitude.

If you have clients that are notoriously challenging, take issue with your prices, or decide to go to another esthetician, it's not a loss; it's an open space for the clients that actively support your business. 

Choose your best clients and expand your services to your target audience. You have to know your worth. 

How to Upsell Salon Services

Smiling woman at the salon selecting her service from the menu

Upselling your salon services is more than business as usual—it should be a given. Here's what we mean. Which services are costing you more than they're worth? 

During the warmer months, waxing services become even more in demand than during colder months. If you are a skilled waxer, that justifies your prices being higher than someone that is just getting started with waxing and gives you a competitive advantage. 

For example, if you have a client only booking a $7 knuckle wax, know that if you’re using a premium product such as Starpil Wax, you’d probably want to upsell other services. Even more so if you’re also using quality spatulas, and taking adequate sanitation measures.

Essentially, you might be paying clients to do their low-cost services for them. Therefore, you might want to consider setting a service minimum before booking a client. 

You could arrange a service minimum in multiple ways. One way to do that is to decide what your minimum service quota is and let your clients know. You could also mention that all a la carte services can only be provided when added to other services or booked in threes. 

For more on how to let your clients know about your service protocol, read ‘How to Update Your Salon Intake Forms 

How to Tell Clients About Your Price Increase

Esthetician talking to her client about service benefits

Announce the price increase to your clients and be honest with them about the reasons. It could be because you are also now paying more for your salon products, an upgrade in the quality of your services, or both. 

For the most part, people will be understanding since many industries are experiencing an increase in raw materials costs due to shortages in supplies.

If you’re raising your prices due to an increase in the level of quality, tell your clients the benefits that they will receive from the price increase. 

Giving clients about a two-month notice is standard when planning to raise your salon prices to allow everyone to hear the news, and figure out their options. However, if circumstances arise that force you to increase your prices in order to continue growing your business, it is perfectly okay.

Your price increase and revised service policy should be sent out in an email or included with all other updated service information. You can also add any news about the advances you've made in your business. You can take this time to let them know about the enhancements in services they can expect or any other relevant news.  

Sample Email to Announce Price Increase

Here is an example of a letter with many vital factors that can be used in your price increase email.  

 

Start with your appreciation. 

Dear (Customer's first name), 

The past (amount of time) working with you has been beautiful. Thank you so much for choosing me to be your (role). I immensely appreciate you and your business and support. 

Be Honest with Your Clients 

Due to an increase in supply cost, we will be raising our prices by 10% beginning on (date).


Mention how your salon price increase benefits them.

All salon services will now provide enhanced benefits such as (insert benefits).

Also, given the current circumstances the health and safety of you as our client and of our staff are of the highest priority. 

 

At (your salon business). We are committed to providing a clean and safe environment for you. That's why we hold ourselves to the highest standard in sanitation measures for your protection. 

 

We will also be investing in the most advanced training in (your chosen service) for our team for an even more superior salon experience.

 

 As (your business name) grows, we will be offering a more extensive range of services including (insert) and using new products such as (insert).

 

 Additionally, we will be adding a complimentary 15 minute after service massage for all service bookings over $150.

 

Thank you again for your continued loyalty, we look forward to seeing you real soon!

 

Warm regards,

(Your name here) 

Final Thoughts

Esthetician showing her client the salon price list

So, if you’re thinking about how to raise prices in a salon, just remember to be clear, open, and honest with your clients. You aren't doing anything wrong; the cost of your salon services has gone up in more ways than one, and your prices need to reflect that. 

Let us know your thoughts. Do you agree that you should be raising your prices or applying a booking minimum? Let us know! To join the conversation, be a part of The World of Waxing, our Facebook group consisting of a global community of estheticians.