A sensitive subject for most beauty professionals and clients is price increase. But WHY? Beauty professionals are afraid to potentially lose business. Clients don't always understand why they're being charged more for the same service they've always received. These are just a few reasons... so could we all agree that maybe the problem is understanding the VALUE of the service has been lost?
So let's talk value. Value by definition is the importance, worth or usefulness of something. To charge, or pay a price you must first find value in the service. As beauty professionals we must see our own value in order for clients to also see and respect that value. But how can we add value?
Client experience: Client experience starts from the time they inquire about your services until the follow up after a service is rendered. People don't buy "things" they buy people. Your business behind the chair is statistically 85% personal skill and 15% technical skill, meaning that your clients are more concerned with how you make them feel versus the skill of your service. So for the client experience, ask yourself what additional touches do you give to your clients to add value to your services?
Continuing Education: Most beauty professionals invest countless hours and money into bettering themselves, their skills and their businesses. Many states require continuing education and even in those that do not, stylists seek it out themselves. The beauty industry is ever evolving and that in itself requires education to keep up with current trends which translates into continual investments. The more education acquired, the more valuable the services you offer.
When I first started in this industry I was told to set my prices at a reasonable rate so that I had the ability to go up on my prices by $1 every year. Even though I was told this I never truly understood why this was important. It wasn't until my background in wholesale beauty supply retail that I realized that we [beauty professionals] see an increase in product prices on average twice a year! That increase can range anywhere from 10 cents to $1 per item, twice a year. Mathematically, let's say a bottle of shampoo sees a 10 cent increase 2 times in one year for a total of 20 cents. Over the course of 5 years you are now paying a $1 more for that same bottle, and that is just on 1 item that you are purchasing to conduct business. If stylists never increase their prices they will consistently lose money in just their product cost alone thus lowering their overall profit margin.
This increase is not just subject to the beauty industry. Everyone's cost of living gradually increases over time and jobs offer pay increases. However, beauty professionals have fear of losing clients or remorse for raising prices... why is that?
How can we make this an easier experience for both professionals and clients? I think establishing mutual respect and creating value in your services builds trust and shows that you are conscience of your client's beauty budget while still covering your cost to provide services. I'll close in saying, don't be afraid to charge your worth but make sure your worth is of value to your guests and more importantly that they know that you value THEM!
