Is it time to increase your salon prices?
If you have more business than you can handle, then you should raise your salon prices. The salon industry is just like any other business: If the demand for your services is steadily increasing and you may outgrow your space or not have enough staff to handle a huge increase–then you should raise your prices.
Getting to the point where you have to raise your prices is what every salon, spa and barber shop should welcome. This means that you are doing something right as a business owner. But don’t get cocky! Just because you’re increasing your customer base doesn’t mean you don’t have to keep marketing and using social media and keeping an eye on education for your staff. You should also keep polling your clients to further substantiate what you’re doing right and fine-tune your efforts.
If your business is not doing well and you decide that raising your prices is what will help you get ahead or “out of the red,” you won’t be able to keep your doors open for very much longer. The rule of business of a lower demand for your services means that you should NOT raise your prices. Only after assessing why your business is diminishing, and then acting on such data, will your business begin to grow.
If your business is growing and you are about 85% to your service capacity, it’s time to raise your prices. If you plan on hiring more staff members and have the space, or you plan to open a new location, it’s time to raise your prices. It’s that simple.