4 Salon Pricing Tips To Help Charge Prices You Deserve
Raising your salon prices is one of the hardest parts of running your business. You can’t put up with your current price yet you can't live without it. You pull your hair out trying to figure out how to handle your pricing.
You can't help but fear that raising your fees may scare away your existing clients or worse, prevent new clients from coming in. Again, if you keep charging low prices you may not make sufficient profits hence risk closing your business.
Feeling stuck? Read on for pricing tips to help you raise your prices and keep your clients.
Get More Returns From Your Business With The Following Pricing Tips
One of the biggest mistakes committed by cryotherapy machine owners is copying their competitor’s pricing. Worse still, some salon owners merely use estimates to set their pricing rates. Luckily, increasing your rates doesn't have to be nerve-wracking. Here are tips to help you out.
1. Determine your worth and how much you want to earn
Knowing the worth of your business is a good place to start. Calculate how much it takes to keep your business running. This should include all expenses and costs incurred either on a monthly basis. With this figure, you can pinpoint how much you need to break even.
Once you know how much your business is worth, it is time to set some revenue goals for the year. When your goals are set, it will be easier to price your services in a way that covers your expenses and helps you hit your goals.
2. Aim for a better customer experience
The difference between a $150 and a $400 service is quality customer service that offers value. In fact, 58% of customers are willing to spend more with companies that offer a great customer experience.¹
Therefore, if you want to raise your charges, first add value to your services. In addition to adding value to your services, ensure your salon space and team are presentable, warm, and inviting.
3. Package your retail products
Creating packages for your retail products is a creative way to raise your prices while making the products seem valuable. Start by creating packages of different sizes. You can also create additional packages.
For example, if you are offering 5 pieces for $100, you can raise the price to $ 120 by creating packages of three pieces and charging $80 for each.
4. Don't forget to factor in inflation
Another way to charge what you deserve is by adjusting your prices while considering inflation. In fact, inflation has increased by 8.6%, which is the highest it has ever risen since 1981.² As such, for your salon to thrive, you need to increase the prices accordingly.
For example, the cost of rent, products, and utility bills have risen. To earn as much as you did before the increase, you will have to increase your prices in the same ratio or more.
Earn More From Your Salon With The Above Pricing Tips
Increasing your salon prices is essential but difficult to do. The above tips will help you start charging reasonable rates that are profitable and friendly to your clients. In addition, you will avoid making costly pricing mistakes.
Founded on facts: for peer-reviewed articles, scholarly journals, and articles cited above please see the below sources.
Customer satisfaction stats
https://www.getfeedback.com/resources/cx/40-stats-churn-customer-satisfaction/Inflation rates
https://www.cnbc.com/2022/06/10/consumer-price-index-may-2022.html
NOTICE: Information contained within this website and in all materials, communications, or presentations by Cryo Innovations and Cryo Recovery Lounge is for informational purposes only. Whole Body Cryotherapy, infrared sauna, hyperbaric chamber, and any and all recovery methods described and/or offered by Cryo Recovery Lounge or Cryo Innovations are neither designed nor advised for treatment or cure of any illness or disease. No cryotherapy chambers (including the XR) have been tested or approved by the FDA. Please consult with your medical professional before beginning any cryotherapy or recovery method. All material contained within this site is copyrighted and may not be reproduced in any form without prior written permission. All rights reserved. For permissions contact Cryo Innovations.