Increasing prices: is a $10 increase too much?
Hi Everyone
I am increasing my prices and changing my menu. What do you take into consideration when increasing prices and how much is too much/too little? Thank you!
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Replies to This Discussion
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Permalink Reply by Ally Draizin on
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I always try to aim with a 3% (ish) cost of living increase.
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A $10 increase is too much of an increase. All of us have to increase our prices at one time or another, but making too much of an increase in services will cause you to lose clients. I also find the cost of retail products seem to go up all the time and you have to get a return on your investment. I let my customers know that when there is a significant increase in what I have to pay to get in retail products, I pass that increase on to them, but try not to raise the cost of my services at the same time. It is not best to raise the cost of your services every year this could send the wrong message to your clients.
Even when the economy tanked between 2009-2012, because I did not discount my services or raise my service rates, I did not lose any clients and had some of the best income during that time period. I did, however, raise the cost of products when the company raise product prices. The economy is a good indicator of when it is the best time to raise prices.
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Permalink Reply by Patricia McDow on
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I agree with Ally however i think a 2 percent cost of living can charge would be appropriate.
Like the others $10.00 may cause you to lose clients. Good luck.
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I think there are many factors to consider. What is your experience and what are you bringing to the table. Are you skilled in specialized treatments? Have you taken many post graduate courses? If you only have been practicing a few years and are not offering anything particularly different or special than perhaps a 2-3% cost of living increase is perfect. If your facial is say $85 then you have given yourself a $2.55/per facial raise. If however, you are a seasoned esthetician, with specializations, many certifications I think you would deserve more. I think $10.00 is way too much but I think $5.00 is reasonable. I didn't raise my prices for 5 years and I will be raising some of my facials $5.00. I have told must of my clients and they are fine with it. BUT I have over 25 years experience multiple certifications, I am an aromatherapist and herbalist. I make all my own organic products that I customize for my clients.
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Permalink Reply by Loana Cristina Curatolo on
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if you changed with a more luxurious room and higher end products, you can.
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Permalink Reply by coldsalineplexus on
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It just depends... are you raising a $10 lip wax to $20? A $70 basic facial to $80? Or an advanced corrective treatment from $150 to $160? Obviously the last two are a lot easier to swallow. It has been my experience that often clients don't even notice a small price bump. I still typically let my regulars know that I've had a small increase in my price on the menu and website, but that I'll be keeping them at their old price for their next two sessions as a thank-you.
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Permalink Reply by Tamara Townsend on
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For price increases, when you go to the grocery store, does the grocer notify you ahead of time that prices are going up? No, they don't. Raise your prices to what they need to be. Your "cheap" clients will move on, allowing you space to take in clients who will pay your prices. No apologies.
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Great point!
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Permalink Reply by Victoria Prinzo on
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Thank you Everyone for your response. I will be increasing my prices since they were moderately priced considering my experience and trying to build a clientele as a newby. I have great clients now and also my experience has advanced, I have taken post grad classes and have good reviews. Is time!
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Perfect that you are able to articulate your worth in that way!!
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Permalink Reply by patricia kelly on
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I think you should also take into consideration the spas in the area. Are their prices lower than yours? If so $10 might be a lot in one move, maybe raise by $5 this year and $5 next. If they are much more than you charge then go ahead and let clients know that you have kept them low for as long as possible. Either way, you know what your services are worth and how much it's costing you to offer them so do what is best for you.
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