#21 How to Adjust Your Pricing Strategically and Successfully
As lash artists, we all reach a point where our skills improve and it's time for our prices to reflect the exceptional work we do, as well as the rising operational costs. Calculating the actual cost per set is crucial, including product expenses, overheads, and other factors. Understanding this helps set prices that ensure a decent income and profit.
Increasing prices without causing a stir among loyal clients or scaring off new ones requires careful planning:
1. Evaluate Your Factors: Consider factors like your training level, area's price points, overhead costs, client loyalty, and stock expenses. Decide on a reasonable percentage increase.
2.Transition Smoothly: Choose a date, often at the end of a financial year, to implement the new prices. Decide whether all services or specific ones will be affected.
3. Keep Up with Inflation: Regular price increases counter inflation's effects. A 2-4% annual increase compensates for rising costs and ensures your profit remains stable.
4. Downplay the Change: Some businesses implement price hikes subtly without making it a big announcement. However, honesty is appreciated. Communicate the reasons if asked.
5. Communicate Strategically: If you decide to inform clients in advance, send emails or mention it during appointments to avoid shocking them. Justify the increase with benefits like advanced training.
Additional options to consider:
- OPTION 1: New prices for new clients, while keeping existing clients at the current rate.
- OPTION 2: Notify all clients well in advance, specifying the date and percentage increase.
- OPTION 3: Increase prices for additional services like refills, which can be more profitable.
The bottom line: Charge what you're worth, and avoid price wars with competitors. Business giants like Coke and McDonald's regularly adjust prices. Losing a couple of clients due to price adjustments isn't a concern – the industry has a vast client base.
You have the right to set your value, and as you increase your skills and invest in your business, adjusting prices is a natural progression. Remember, you are worth it! ❤️