Let’s Talk About Price Increase by Joe Cignetti

So, you want to revisit your pricing structure for 2025 however you feel nervous doing so!

I have put together a few suggestions that may work for you.

In 2024 we have seen prices for almost everything increases yet hairdressing is one of the most undervalued professions (Just my opinion)

Increasing prices as a salon owner involves both strategic planning and careful client communication. Here’s a deeper dive into the process:

 

Why a Price Increase Is Important

1. Inflation and Rising Costs: The cost of utilities, rent, and salon supplies often increases yearly.
2. Staff Wages: To retain skilled stylists and ensure they are compensated, you need to adjust prices periodically.
3. Business Growth: A price increase allows for reinvestment in advanced training, new tools, or renovations, enhancing your salon’s offerings.
4. Perceived Value: Consistently low prices can unintentionally undervalue your services. An increase can align your pricing with the premium experience you provide.

Steps to Organise the Price Increase

1. Evaluate Your Services

• Identify Value-Adding Factors:

Are you offering a premium experience compared to competitors?

Do you use high-quality products, or have you invested in ongoing training?

• Assess Popular Services:

Which services see the highest demand? These may allow for a slightly higher price increase.

Do you have services that require the most time or resources? Focus on increasing prices for these to ensure profitability.

2. Calculate the Adjustment

• Avoid Large Jumps: Aim for a modest increase (e.g., 5–15%) to avoid shocking clients. For example:

A $60 haircut could increase to $65 or $68.

A $200 colour treatment could go to $210–$220.

• Round Off Prices: Rounded prices (e.g., $70 instead of $68.50) appear cleaner and more professional.

How to Announce the Price Increase

1. Timeline

• Announce 4–6 weeks before the increase takes effect.
• Ensure all clients are informed well in advance to avoid surprises.

2. Communication Channels

• In-Salon Notice:

Place a polite announcement at reception or on mirrors where clients will see it.

Example:
“Dear Clients, please note that as of January 1, 2025, our service prices will increase slightly to reflect rising costs and ensure we continue to provide you with the best experience. Thank you for your understanding!”

• Email Campaign:

Use a professional email to reach clients who may not visit before the increase. Personalize it by addressing recipients by name.

• Social Media Posts:

Post friendly, upbeat messages across platforms (Instagram, Facebook) with clear visuals.

Example Post:
“As we step into 2025, we’re making updates to our pricing starting January 1. This small change allows us to continue delivering top-tier service with the best products and techniques. Thank you for your loyalty!”

• SMS Text Reminder:

For clients with appointments close to the transition, send a short text to inform them.

3. Staff Preparedness

• Train your team to handle client questions:
  • Explain the reasons for the increase confidently yet empathetically.
  • Focus on the benefits: “We’ve enhanced our services and invested in premium products to ensure you always get the best results.”

 

Managing Client Reactions

• For Loyal Clients: Offer them a loyalty program or small perks, such as a free product sample with their next visit.
• For Concerns: If a client expresses dissatisfaction, emphasize value over cost. Reassure them that your services remain a great investment.
• Grace Period: Consider offering long-term clients a small discount or a brief grace period for the first few weeks of the new year.

Making It Positive for Clients

• Enhance the Perception of Value:

Introduce small complimentary perks (e.g., a scalp massage during a treatment).

A variety of refreshments

Share behind-the-scenes content on social media, showcasing investments like staff training or new equipment.

• Bundle Deals: Launch package options to soften the impact of individual price increases (e.g., a haircut + treatment package at a slightly reduced price).

Additional Ideas for the Transition

1. Host a Client Appreciation Week:

Offer a small token of appreciation, like a free deep-conditioning treatment or coffee, leading up to the price change.

1. Incentivize Pre-Bookings:

Allow clients to pre-book 2025 appointments in December 2024 at the old rates.

1. Show Gratitude:

Thank clients sincerely for their loyalty, both in person and online. A little appreciation goes a long way.

 

Sample Client Email Template

Subject Line: A Small Update for an Even Better Experience

Dear [Client’s Name],

We are incredibly grateful for your loyalty and trust in [Salon Name]. As part of our commitment to providing you with the best service, we will be implementing a slight price adjustment starting January 1, 2025.

This change allows us to:

• Continue using top-quality products.
• Invest in advanced training for our stylists.
• Maintain the exceptional service you’ve come to expect.

We truly appreciate your understanding and ongoing support. Please don’t hesitate to reach out with any questions.

Warm regards,
[Your Name]
[Your Salon Name]

In closing I feel its important to believe in your self-worth and that of your team, Cheapest is never successful, value added and great service wins every time.