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Make Your Prices Reflect Your Value

by Holly Schippers | October 28, 2013 | Bookmark +
Raising your prices can be scary stuff, yet unless you want to make less money every year as your career advances, it must be done.  Think about it, how many of you out there have not raised your prices in five years or more? In that time has your car payment gone down? Is your rent lower? Are you utilities lower? Is daycare cheaper? Has product cost gone down? How about groceries, taxes, or any other bill you have? Do you see where I am going with this? If all of your overhead and living costs are going up yet your prices remain the same, then your income declines!! Now that I have your attention, or at least that of your wallet, let’s talk about how to raise prices. I will even put myself out there with you and raise salon prices right alongside you. First we need to decide how much the prices need to go up. The cost of living increase is figured at 1.7% annually. Multiply that times the number of years you have not given yourself a raise and there is a starting point. You could also consider $1 a year or something simple like $5 increments. I personally decided to go with $1 a year, so my prices will go up $3 on most services. Here is an example of part of my menu if that helps you: 

CND Shellac w/nail fashion $48 

·       new file, cuticle work, shaping, authentic CND Shellac, glitter fade or full set simple nail fashion, moisture pack for nails (advanced fashion designs will increase price)

 CND Shellac w/accent nails $40 

·      new file, cuticle work, shaping, authentic CND Shellac, small amount of sprinkled glitter or nail fashion on two fingers, moisture pack for nails

 CND Shellac $35

·      new file, cuticle work, shaping, authentic CND Shellac

CND Shellac Power Partner $10

·      add CND Brisa Lite Smoothing Gel to your authentic CND Shellac for strength

Brisa Lite Smoothing Gel $35

·      CND Brisa Lite Smoothing Gel applied in clear to nails for strength

Perfect Polish w/Benefits $30

·      new file, cuticle work, shaping, application of CND Vinylux, small amount of sprinkled glitter or art work

 Perfect Polish $25

·      new file, cuticle work, shaping, application of CND Vinylux

 Princess Polish $20

·      new file, shaping, application of CND Vinylux, glitter and/or nail fashion

 Male Nail Detail $20

·     new file, edge reduction and refinement, cuticle detailing, hand massage

Nail Fashion $5 and up

·      add a flare of fashion to your attached accessories that go with you everywhere, depending on time and talent involved price will increase

Once you have prices in mind, you need a notification method. You can send out an email, postcards, letters, post a letter in the salon, or hand out something personally. I have ordered some simple menus to pass out along with a letter I will be printing to hand out with the menus. October is an ideal time of year to increase prices, so I will be making the new prices effective October 31. My clients are really good to me and I would like to give them something in return for understanding the need to raise my prices — a complimentary upgrade on their first service after the increase seems like a good gift. What are some ideas that some of you have for ways to break the news?

Now let’s talk verbiage. How do you put the increase into words? How about those of you that have not been charging for nail art? Here is one way to word your increase:

Thank you for your patience as I have taken the past (XX months or years) to educate myself on nail fashion. Practicing my skills on you has been a joy that I much appreciate. Now that I’m comfortable with my skills and level of education, the pricing for nail fashion has been established and will become effective Nov. 1 as I would like to treat you to one last complimentary application of Halloween art in thanks for your understanding.

That doesn’t seem too painful,now does it? How about the rest of us that need to do more of an across the board price increase, here are a couple ideas that you could customize and finish out to use:

·     Thank you for being a guest at (blah blah salon). Your patronage is much appreciated. We would like to give you a courtesy notice of a price increase that will be effective October 31, 2013. Please find (an enclosed menu, online menu, etc.)

·       As a valued client, I wanted to personally make you aware of an increase in pricing for nail services that will be effective October 31, 2013.  This increase will cover increased product and overhead cost incurred over the previous three years. You will also notice some added conveniences such as card payments being accepted effective January 1, 2014. To thank you for your understanding, enjoy a complimentary nail fashion upgrade on your first service following the price increase. Please find a menu enclosed which will detail the new pricing, for complete service descriptions and photos visit (insert FB or website)

I hope that these suggestions help you out so that raising your prices doesn't have to be scary. We can do this together and help keep our income from steadily going down!

— Holly

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