Price Increase Strategies: How to Overcome Fear and Boost Your Salon's Profitability

Hey Hairdressers! We're diving into the dollars and cents of it all – Navigating Price Increases to Keep Your Salon Thriving in Today's Economy. The hottest topic on every news platform, when they’re talking finance, is the cost of living crisis. I understand this is making many of us in the hair and beauty industry more scared than usual to have a price increase, and super nervous about sharing new prices with our clientele when ready to do so.

I’ve reached out to Larissa Macleman. She is a Coach and the CEO of the Salon Owners Collective.

We’ll give you the lowdown on smart strategies and expert insights to keep your salon in the green. It's all about thriving in this economy. Listen to learn (easy and proven) actionable steps shared in this essential money talk!

Show notes for podcast episode 164

LET’S MEET OUR GUEST – larissa Macleman 

Larissa Macleman helps salon owners step into their role of ‘Salon CEO' and grow a Rockstar Team, leading that team to smash sales targets, earn powerful profits and attract & retain dream clients. Larissa is a successful salon owner, salon coach, and podcast host and formerly worked with salon software company Timely. So yep, you guessed it! She is the best in the biz to debunk our fears about increasing our prices and help us bust some myths about how to communicate with our clients about money.

When is a good time to raise your salon prices?

It is our commercial responsibility to run a profitable business. This means we can continue to pay ourselves and our team, invest in education and new equipment, keep the doors open to serve our clients and be sustainable. There are many Hairdressers out there thriving regardless of the cost of living crisis. You can be one of them. Inflation is approximately 2-3% per year, which means hairdressers must raise their prices annually. We also need to do it when the market changes and it has changed recently, including things like interest rates and recessions in a pandemic recovery.

A great time for your annual price rise is October because clients are less likely to change their salon or hairdresser before Christmas. If you haven’t raised your prices in the last 12 months you’re overdue for an increase now, regardless of what month it is.

5 TIPS FOR COMMUNICATING A PRICE LIST:

• A simple email to your warm list of existing clients can work well but don’t get too detailed
• Avoid doing a social media blast or apology price increase posts on social media
• A great way to communicate your pricing is to display a service menu at each station
• Give a script to your team with the language around the “price adjustment” to support them when talking about the price rise with clients
• Remember we don’t need to over-communicate price rises nor apologise for them

Listen to episode 164 of the Colour Kristina Talks Podcast to learn Price Increase Strategies: How to Overcome Fear and Boost Your Salon's Profitability