Most of us do not increase our prices enough then alone charge our worth! And during my time of working within the industry and being an accredited training provider, there is one question I get asked the most and this is how will I know when I should increase my prices?
Now there is no simple answer to this question as each of you are individuals and at different stages within your business however, there are 8 signs you should look out for which will guide you to know the answer to your question when it is time, but before we get into this let’s discuss the matter a little further.
One of the answers you will hear from other business owners is to increase your price by a certain percentage once a year and this is the best time to do it, only thing with this is each business is unique and this is an outdated practice… at the end of the day if you feel like increasing or even decreasing your prices then this is your choice and you can do this when it works best for you and not when society expects you to. In fact, this moves on to my next point of when society expects you to?
The last time you checked you would have found that the business is under your name and you make the decisions for it, so why would you let your clients or customers dictate when you should or should not increase your prices, things change all the time, and guess what if your clients are unhappy with the change then they are no longer your ideal niche and its time to make a change! At the end of the day it is true when they say when one door closes, simply ask yourself this would you prefer to earn more and work less or keep those 1-2 clients and work longer hours for less money? I know what my answer would be but what would yours be?
Once you adopt the mindset of not asking permission when it comes to your business, you will start to see an improvement and start to have more freedom in life to spend it doing other things you love with others you love. Just think there are thousands of others who have adopted this mindset and might not be as good at what they do like you but are earning more and more than likely working less! It is time to prioritise yourself and your business and start looking at the bigger picture.
I mentioned earlier about 8 signs you can spot to help you make the decision in knowing if it is time for you to increase your prices and here they are…
1} You are working all the hours under the sun but still struggling to pay your bills.
If you are working all the hours which are possible but not having any time to yourself to live your life and/or even pay your bills then it is defiantly time to increase your prices.
2} You can not take any more clients on because you are fully booked.
You are getting the clients but can not book them all in, then increasing your prices will soon make room for new clients who are willing to pay you for your worth and can benefit you in reducing your hours if you would like to at the same time.
3} Your prices are too low to attract the right clients to you.
Sometimes having your prices too low can have the opposite effect on gaining new clients and the reason for this will be some clients want to pay for your time and knowledge and want to know they are in the best of hands for the service and you will find they are happy to pay for the price you charge and will happily rebook with you if you provide the best standards you can offer. When your prices are not too low then this will tell the clients you are not a premium business.
4} You are being told you are not charging enough or you are too cheap!
This is a massive sign it is time to increase your prices, if the people you know and care about tells you then you can put it down out of love and passion for you to do well but when your clients start to tell you this then it shows you that they can see you should be charging more, so it is definitely time for you to see it and do something about it and increase those prices!
5} Attracting everyone but your ideal client.
If you are noticing a pattern of booking in a certain type of client who does not really come under the idea you had for clients then this could be a massive sign your prices are too cheap, another way to know this is if you try your best to rebook your client but they do not rebook with you then they more than likely not with you for your value but with you for the price and this could mean that you end up chasing for new clients instead of gaining loyal ones.
6} You have not increased your prices in years.
This is another massive tell sign, it is time to increase your prices. If you have been working for a while but have not increased your price once then you are certainly overdue, even if you need to work to the once of year theory until you are able to change your mindset then at least you will be starting to get used to the idea and putting it into practice.
7} The cost of products and equipment has increased.
You did the hard work and sorted your pricing out so you no longer match everyone else but ensure to be covering not only your wage but your cost… then you find out the brand you use has increased or the PPE you supply has increased then you need to increase your prices to cover this cost and if you do not, you will find that soon you will be working for nothing as every penny goes onto your cost and not in your purse.
8} Provide a service with a difference
Give your clients value and make them want to rebook with you, provide them with biscuits and drinks, and this in return will help provide your client with a great experience along with a good chat and an excellent service al provided by you. Of course, this will be covered within your pricing as to not lose pennies from your actual pocket and the best bit the client will be happy to pay for the experience with no arguments on their part, although you do not need to explain this to them.
Knowing when you should be increasing your pricing is one thing but knowing how to do it correctly is another and if this is something you struggle with then I get you, we have all been there but it is one of those things once you know how to do it and what is included the better you will be for it and this is something I can help you with!
I provide a ‘Charge Your Worth’ pricing course where I will teach you how to price everything from insurance to those biscuits and have these within your pricing so you do not pay for one business cost out of your own pocket! Let’s not forget the mindset involved with this and how to increase your pricing without the guilt to your clients or to yourself one way to gain this insight is to have the knowledge and understanding of why you need to increase your pricing and when you need to do this and if this is not for you then I hope you have found this blog insightful and it helps you with a win in your business.
Either way, I wish you all the best with your price increases and a very successful business.
Until the next post, have a great day.
Chandra.
A few links to help you succeed;
- For even more success take a look at our freebies created just for you.
- Need marketing ideas? Then look no further than our Innovative Marketing Ideas For Your Salon E-book.
- Fancy a change or want to upskill your business? Take a look at our accredited hair and beauty training courses.
- Need further help to turn your business into a 4 figure+ earner, how about our Coaching Academy where you can learn everything from simple online systems and strategies to improve your business and make your dreams come true.
