Not every professional can say they love their job. As a lash artist, you know you are one of those professionals who loves and takes pride in a job done well. However, one of the most awkward moments you may face as a lash entrepreneur is bumping up the prices for your services. Your clients have been loyal patrons, and you may feel uncomfortable talking numbers with them. However, as a business owner, it is only fair to ensure you are leveraging your excellent service, brand value, time, and effort in the best way possible. You need to factor in specific components to ensure you benefit from your business and maintain your work-life balance.
Why should you increase your lash prices annually?
The past few years have not been the best for us, and when we are finally inching to a “normal way of life,” inflation is hitting many small businesses. To stay ahead of your finances and avoid any arrears, increase your prices yearly to make your business profitable. Remember, what sets you apart as a small business owner is that you are passionate about what you do and have direct contact with your clientele. Unlike big businesses, you will be surprised how your customers may be more understanding towards your price changes because there is a sense of community in supporting local businesses. Increasing your prices also means you value the exceptional service you provide to your clients and are confident in your skills.
When to increase your lash salon prices?
The biggest fear most lash entrepreneurs face is increasing their prices, wondering if that will make them lose their clients. This will require you to do research and gather some data. Start with assessing your business. Are you working out of hours to fit in your clientele? Have your operating costs increased? Are you working on improving your brand value? Are you planning to hire new staff? Create a list of the services and products you sell and compare them with your competitors’ prices in your area. It is also worth noting which time of the year you want to increase your prices. For instance, tax time can be stressful for your clients to deal with your price increase; however, tax return time or Christmas time can be ideal times to do it as it will be easier to accept the changes.
How much to increase your lash prices?
In marketing, perceived value is what customers think of your product or service and how much they are willing to pay. Based on this theory, you don’t want to undervalue your services by charging less; however, you don’t want to lose them by overcharging them, ensuring your price increase is in line with what is reasonable and achievable. Round up your company costs and calculate your annual profit to give you more clarity in understanding where your business stands. In addition, calculating your annual growth rate will help you detect and analyse sales trends.
The formula to analyse your growth rate = ending value/beginning value -1
For example, if you invested $10,000 in your lash business at the beginning of the year, and at the end of the year, your lash business is valued at $10500. Therefore, you divide your ending value by the starting value.
Subtract 1 from 1.05 to get 0.05, equivalent to 5%, when the decimal numbers are converted into a percentage.
Based on your annual growth last year, you will have to decide how much profit you aim to make the following year. In this scenario, you should double up your profit margin, so an increase of 10% in your services can be easily applicable.
Ways to increase
The price increase can be done more innovatively. Research says that the human brain is more likely to recall even numbers than odd numbers; for instance, if you charge a set of classic lashes at $80, increase the price by $3, $7, or $9 instead of jumping to $90. They may get more affected by the jump of $80 to $90 instead of $80 to $87. It is ideal to let your clients know in advance if you are raising your prices. You don’t need to do a huge song and dance, but even mentioning the price raise to them at their appointment is a respectful way to keep clients in the know. If your client questions the rise, it is best to smile and confidently tell why you have increased the price.
It is also wise to test the waters one service at a time. This strategy is called price cycling, where you raise and increase the price for one part of your service. The demand for that service before and after the price increase announcement would be worth noting. After a while, you can introduce the next part of your price increase strategy to ensure that your clients don’t feel affected by your new pricing all at once if they have booked in for two or more different services.
The price increase can disproportionately impact your clients and your business, and you need to be ready to deal with the challenges. Don’t feel disheartened if you lose clients during this process. This means you are keeping the clients that should matter to your business. Loyal clients who value your services and skills will stay, which means you spend less time working and and more time earning money. As a lash artist, your focus should be to hone your skillset, provide the best to your clients, and grow your business. Remember knowing and valuing the worth of your skills, services, and business will eventually grow your clientele.