Ask any salon owner from the past few years. It’s been a struggle. Between temporary shutdowns, closures, and economic strife, you’re only breaking even. From the early days of the pandemic to record-high inflation in 2022, keeping your salon open and profitable is a challenge. Even worse, economists predict that inflation isn’t slowing down anytime soon. So how do you continue to make money?

It’s time for a price increase. These words may make you uneasy. You might wonder if your customers will be angry. Or, your customers will walk away. But don’t fret. A price increase can actually be an opportunity to bring your brow salon to the next level. Loyal customers will appreciate your commitment to amazing service. And they’ll have no problem supporting you.

Read this guide to determine how to raise your rates and communicate the change to customers.

How to Determine Your Price Range

If you’re booked and busy, you’re overdue for a price increase. Customer loyalty is a great indication that you’re providing an awesome service that deserves a pay raise. Whether you’ve raised prices multiple times or you’re a newbie, it’s best to go in with a plan. Do your research before solidifying the price changes in a few simple steps.

Crunch the Numbers

Everyone’s felt the pain of inflation, including your salon. Grab a coffee and dig deep into your salon’s budget. List all your expenses like rent, wages, suppliers, and products. Determine what costs have increased recently. Due to supply chain issues, you may have seen price hikes for supplies, like brow wax. If so, write that down! Once all your expenses are out in the open, you can determine how to make changes that help increase your profits.

One strategy to consider is increasing prices where you already have a lot of clients. If brow waxing is your main service, it means it’s in demand. So, your happy customers will be more than willing to pay a little extra for it. Resist a steep price increase on a service that’s less in demand.

Dig Into Competitors

It may not be obvious where to increase prices right away. So do some research on your competitors for inspiration. Pinpoint a few of your biggest competitors and check out their rates. This will allow you to get a lay of the land as to what the norm is in your area. Stick with a price that allows you to profit yet doesn’t make your customers want to run to your competitors instead.

If you don’t have one already, now would be a good time to develop a unique value proposition (UVP). A UVP helps your salon stand out from the crowd with a defined benefit to customers. If you promise to deliver the best-shaped brows in town with a complementary cocktail, customers will remember that and choose you. Happy customers won’t worry about a small price increase.

Use an Incremental Strategy

Price increases can be intimidating. If you haven’t raised prices in a while, consider an incremental strategy as opposed to a large increase. For example, you may want to increase your eyebrow waxing service by 10% this year. If high inflation continues next year, maybe you’ll try 10% again. This is a less painful strategy than hitting customers with an immediate 20% increase.

Consider Affordable Service Boosts

Consider your UVP a step further when planning your price increase rollout. While price increases are to be expected, it should still be treated as a period of change management. So you should think about how you might want to boost service to retain customers when you raise prices.

The aforementioned cocktail idea is a nice touch. But consider a promotion period to coincide right when you announce your price increase. Perhaps clients can get a complementary lash consultation with their next brow appointment for a month. Whatever strategy you choose, keep it in line with your salon’s values and keep customers happy.

Choose the Right Time

Decide on a date that you will implement your price change. January may be a good time, as it’s typically a slower month for salons anyway. Or maybe you’ll choose fall, as it’s right before the busy holiday season. Whatever timeframe you choose, stick to it!

Once you’ve planned a date for your price increase, create a timeline. Pick a timeframe at least one or two months out from your chosen date. You’ll want to make sure that your customers have been notified well in advance to minimize any confusion.

Communicate the Change

You’ve rolled out a comprehensive price change plan. Now it’s time to alert your customers. If you’ve never increased prices, this can be a daunting experience. Follow a few tips to implement the change seamlessly.

Take a Deep Breath

Swallow any fear you have about raising your rates. Take a deep breath and decide to be confident! If you falter or sound unsure about the price increase, your customers will pick up on it. Rather, you should focus on the fact that you provide a great service, and your rate increase is necessary. If your service wasn’t any good, you wouldn’t have repeat customers to begin with! Sometimes salon owners sell themselves short. You don’t know your worth! Remember that you’re worth the price increase.

Make the Announcement

You’ve crunched the numbers and solidified your new rates. So how do you tell your customers? Take it a step at a time to ease your apprehension. If you communicate transparently and openly with your customers, they will accept the change without a fuss. But a successful change requires consistency from everyone in the salon.

Have a meeting with all your employees to make sure they know the new rates as well and can answer any questions. Tell them to remind customers in person at the end of their appointment. Design an attractive sign that details the price changes for the front of the store.

Notify Customers Digitally

After signage goes up in your salon, it’s time to do the same online. You’ll want to make sure your digital presence coincides with the price change. Remember to update your website, Google Business Listing, and booking site with the new prices when they go into effect.

Once the change is final, there should be no old price discrepancies online. It’s also best practice to email your customers in your email CRM so they’re aware of the change.

Don’t Sweat Resistance

If implemented properly, your price increase won’t repel clients. But what about the minority of customers who vocalize their contempt over your new rates? It’s possible that some clients simply have questions. Answer any questions with kindness and a positive tone. But stand your ground on your decision to raise rates. Consider these talking points if someone challenges your new rates:

• State the Facts. Supply chain issues have affected everyone. If your materials cost more, you can say that.
• Commitment to Quality. Reiterate that these rates allow your salon to function at a high level with better equipment for clients.
• Salon Demand. Your salon continuously is booked and the rates allow you to remain competitive.

As a veteran in the salon industry, you know that some people will never be happy. Handle any resistance with grace and a smile. If your client of many years becomes cold over these rates, it may hurt your feelings. Sadly, these customers don’t see your worth and it’s best to part ways anyway. The customers who care will stick around!

Keep Building Relationships

Phew, you did it! But just because you successfully raised rates, doesn’t mean customer service stops here. Be sure to thank customers for their understanding. Customer loyalty allowed you to maintain your customer base and retain your rates. A commitment to customer service is integral to keeping your bottom line healthy.

If you haven’t already, start a loyalty program for customers. Continue to keep them in the door with special promotions on their customer anniversary and birthday. Consider a punch card for continuous services. Their tenth brow wax might be discounted at 25% off, for example. Whatever tactics you choose, make sure your customers feel appreciated and loyal to your brand.

Keep Adding Value to Your Business

Inflation and price cuts can put you in a deficit mindset. Yet, this is a great time to consider how these price increases actually add to your brand. Maybe you’ve added new services like brow tinting. Take it a step further and consider selling products as well!

Train your employees on the latest brow trends. Encourage them to get acquire new skills and incorporate products into their service. A promotion on brow soap can show customers the latest waxy brow look! Products are a great way to elevate your current services and increase revenue.

Eyebrowz Designs can help. If you’re ready to get started with your very own branded eyebrow products, start a new line with us today!