Is It Time For A Price Increase?

How to let your customers know about price changes to your treatment menu.

The past two years have been unpredictable to say the least, and unfortunately small businesses have taken hard hits during the pandemic era. Add to that general inflation and it just makes sense that your pricing list may need a bit of a tweak here and there to match the rise in supply costs, rent, demand for sustainability and general living.

What may seem like an easy and expected task may cause anxiety for some business owners and managers, especially those with a loyal clientele. So how will you know it’s time to bump up your prices? Well, ask yourself these questions once in a while to ensure you are getting the most from your business and paying your staff fairly:

When was the last time I raised my prices?
If it’s been a while since you last looked at your pricing menu, the start of a new year may be the perfect time to do so. And don’t worry — it shouldn’t affect demand for your services. In fact, most of your long-term customers will be expecting a price rise.

What does my profit margin look like?
Successful businesses rely on a healthy profit margin, i.e. the balance between what you’re spending and what you’re bringing in. Start by examining your supplier costs and shop around for better deals, or cut services or products from your range that are no longer in demand. If your outgoing costs aren’t negotiable, a price rise may be on the cards.

Am I on-par with competitor pricing?
If other businesses in your area have upped their prices, it’s generally safe for you to do so as well. While investigating competitor pricing, it’s also a good idea to compare their offerings to yours to see what strengths, processes and experiences may be attractive to your customer base.

So, you’ve decided it’s time for a price rise. How do you do it? Well, you want to keep it succinct but polite — take a leaf from Deciem’s book. The skincare giants announced a price rise in a recent Instagram post and received nothing but positivity from their customers.

Here are a few tips to get you started on your own price increase.

1. Give your customers warning

It’s important to give people a heads up when it comes to big changes to your business, even if it’s only a few dollars. Set a date to initiate new prices and then let people know that it’s coming. You may want to offer existing customers treatments at your current rate for an extended period of time, but that’s totally up to you.

2. Explain your motives

Your customers will be more open to the changes if they know why you’re doing it. Plus, inflation happens and many people are probably expecting it. Send out a brief email, post on social media or just tell your customers as they come in. But don’t feel the need to apologise — you’re a business, and small price jumps every now and then should be expected.

3. Increase the perceived value of your services

Obviously it’s important to avoid raising your prices for the sake of it. So remind your customers why your business is a good fit for them. You may even want to sweeten the deal with a small discount on multiple treatments purchased, or complimentary products as a bonus for package deals.

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