Raising Prices without Losing Trade

by Nergish Wadia-Austin.

Nergish Wadia-Austin is the CEO and founder of the PHAB Service Stars and a leading international business management trainer and on-line coach. She has for the last 22+ years been training salon owners and managers in how to upgrade their knowledge and skills in growing their business and making money! She believes that many salon owners struggle unnecessarily because they lack the skills and knowledge in business that makes it harder for them to run their salon’s, spa’s and barbershop’s profitably. Once they’re taught those skills in a simple, practical and easy to implement way, their revenues grow steadily, allowing them to then grow their business. Details of what she teaches are on her website below and she also tailor makes courses to suit the business’ or the manager’s needs via a free consultation

www.hairandbeautyexpert.com I have been approached many, many times in the past 4 months about price increases. The question on everybody’s lips is ‘Should I increase my prices or shouldn’t I? My response never changes: there is no one correct answer BUT there are a set of rules that my experience helped me to design, which, when applied, makes a great guide to use when you are considering a price hike. Once you’ve considered everything on this list you will arrive at the correct decision for your business. Hope it helps! The same rules apply when you decide to increase prices for time in a professional’s column. If you’ve answered YES to all of the above then go ahead and raise your prices without fear of losing loyal customers! If, however you have answered NO to any of the considerations above then only raise prices of your most sought after/ booked up services/treatments or the most busy and booked up professionals using the same consideration guide above. Now to answer the ‘but my cost of buying PPE and my reduced time slots due to disinfection times between customers has reduced my ability to earn’ is very valid point. And if you are continuing to maintain the higher standards of hygiene and routine then it is worth considering a (at cost) price increase (which you will have the data to work out how much more it has cost you per client to provide each service now as compared to pre- covid extra precautions). That is a justifiable increase because you are choosing to continue your new higher standards of cleanliness. As a business coach I recommend this because the statistic that 67% of all customers still remain worried about Covid spread, so aren’t returning as often to businesses providing close contact services as readily as they used to.

As I write this article, Ireland has revived news that most Covid restrictions have been relaxed but please remember that close contact service providers still have to have visible higher hygiene standards going forward regardless of what governments declare. The danger of raising prices is they are readily accepted by the customer if they can see improvements be that in service, treatments, new products or in surroundings. Consumers only start to notice or complain about a price increase when NOTHING has changed for the better! That’s when they feel ‘ripped off’. It’s easy for us in personal care to improve our standards of performance & service delivery and it helps us to grow our businesses when we’ve re-trained staff in knowledge and skills so that a facial or a Balyage results in your business are much better. Now that can be as a result of better consultation language or better listening skills or new techniques learnt. Or when the Spa, Barbershop or salon is cleaner, newly painted or refitted. Or the business has introduced a new gadget or has introduced new product ranges. Or if the reception check-in or check-out, booking or payment service have improved making the clients life easier. Then a price increase will pretty much go un-noticed because it would be justified and visible to the customer. I shall end with these (strong words of advice) if the business continues to provide the same service, returns back to the same old slack hygiene standards, with professionals giving the same tired service in a business space that remains it’s 2019 lack-lustre, unimaginative space and you still increase your prices because every one in the industry is screaming to raise your prices, I don’t recommend it for the loss of custom that will inevitably follow! I’d recommend improvements & training first and then the price increase to charge what your team’s time and skill is worth!

I hope this has answered the burning question of the moment.

Nergish is also the CEO of the PHAB Service Stars which recognises and supports the best hairdressers, barbers and colourist in Ireland and the U.K. Check out how many of your professionals qualify at www.phabservicestars.com To speak to Nergish about your business training needs, email her at info@hairandbeautyexpert.com for a free consultation. ©Jopirza Consultants. All rights reserved.