How To Unapologetically Raise Your PricesAug 27, 2022
We are going through a different type of time in our lives. Everything has gone up, from our gas to our groceries. And if you have incurred an uptick in price when it comes to the supplies you are purchasing for your business (which you probably have), then sis.. It’s time to raise YOUR prices too! It is okay to raise your prices even though I see a lot of people in the beauty industry struggling with this. Many of you do not want to have to raise the prices on your services. However, I don’t want you to get into a space where you’re sacrificing your growth as a business owner because you’re afraid of hurting someone’s feelings or you’re worried that raising your prices will cause you to lose clients. This is just the world we live with our current economy and if you are not keeping up with the inflation that we are all currently facing, your business can and will suffer from it! We are business owners because we are here to MAKE A PROFIT.
Here’s how you can go about raising your prices without feeling so icky about it:
Give your clients notice
You can go about giving your clients advanced notice on price increases by putting up signs in your salon or sending out an email blast. If you’re feeling anxiety about how to word this to clients through an email blast, I recommend looking up different examples of emails that people have sent before to give you an idea on how to go about this process. You should still go about relaying why you’re doing this in an authentic and genuine way, but sometimes it can be helpful to have some inspiration from other companies that have done this very successfully. Going into this conversation while being transparent will allow your clients to feel the respect you have for them and also help you to feel more at ease knowing that you aren’t going to be blindsiding anyone with higher pricing.
Offer A Solution To Keep Costs Low
A lot of us have packages, memberships or loyalty discounts available for clients already. If you don’t, I would HIGHLY recommend that you incorporate this into your business. These types of options are great to offer to clients as a way to give them a savings while still being able to keep up with their services. A great way to introduce or reintroduce this to your clients is with an email blast! In the same email you send to your clients about the price increase, you can also offer them the option to join your membership or loyalty program and explain the benefits and savings that comes along with doing that.
Stop Feeling Bad
I understand how it can make you feel SO bad for raising prices when you have loyal clients that have been coming to you for years and years and years. BUT, these clients that have been coming to you for so long and know you on a personal level, should understand and respect the fact that you are a business owner and this is your livelihood. If you’re a mother, you have little mouths to feed, you have a family and your own life to take care of and unfortunately you cannot just stay in the same place that you’ve been at for the same 20 years. It hurts my soul when I hear that some business owners have not taken the steps necessary to grow into more of their potential because they don’t want to hurt the feelings of their long term clients.
I will offer you another solution that should be taken as an absolute LAST RESORT option when it comes to raising your prices. If necessary, you can grandfather some of your current clients into their current pricing. If you announce your price changes and you end up getting push back from a client that has been with you for a very long time and you have a solid personal relationship with them, you can consider having a grandfather plan in place for this particular person. The key to this is to not be TOO nice and fall into a cycle of doing this for EVERYBODY because that just defeats the purpose of raising your prices in the first place. We would, of course, hope that the clients that have this close relationship with us would show us the kind of love and support as our business goes through these changes, so also take that into consideration.
As a business owner, you have to think about profits. There’s no other way around it. Your profits have to make sense. You cannot continue to grow your business without increasing your profits. I know a lot of us get stuck in how much money was made in that year and the revenue that came in. What’s really important is the profit that you make that year and figuring out what we need to do on our end to make it so that our profits can continue to increase. There’s lots of ways to do this, including increasing your prices or lowering your cost of goods. This is a difficult and uncomfortable conversation to have but I believe in you as a Glow Boss because if you are confident in the service that you provide, you will be fine.
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