To keep your business healthy and growing, it's a good idea to evaluate your barbershop prices regularly. At some point, you'll need to raise your prices. But you don't want to drive away your loyal customers, either. Setting a fair price point for you and your customers is crucial to your long term success, but there isn't one rule to follow that can tell you how much to raise your price.
In today's post, we're going to review some of the factors that can drive your cost of doing business up and lead to a price increase. We've also got advice for you on how to raise prices the right way.
Why barbers may need to raise prices
As a barber or barbershop owner, raising prices can feel intimidating or even controversial. You may want to keep prices low to prevent losing customers, but there are many factors that make a price raise inevitable.
Education & experience
As you develop your craft through schooling or hours behind the chair, your skills are going to increase. As your cuts get better, you can consider charging more.
Demand
If your services are in high demand and your schedule is constantly full, that's another good reason to consider raising your prices.
Rent
Whether you're renting a chair or paying rent for the whole shop, the cost of rent always seems to go up. At some point, you may need to cover those costs with a price hike.
Supply costs
The odds are the cost for everything from combs to styling products has gone up for your business the last few years. As these costs increase, so does the cost to provide your service, and that can eventually lead to a price increase.
Inflation
If it seems like everything is more expensive today, that's because it generally is. With inflation raising the cost of everything from cars to eggs the last two years, you may need to raise your prices just to keep pace.
What most barbers find is that customers are happy to pay more for your quality service and they understand you need to stay profitable to take care of yours.
However, raising prices the wrong way can potentially drive away your loyal customers. Below are some tips you can follow to increase prices without losing customers.
5 tips for increasing prices without losing customers
1. Introduce the Changes Gradually
If you’re thinking of raising your prices, try not to do it all at once. Gradually increase your prices over a specific period, such as six months or a year, to help your customers get used to the changes. This will give your clients a chance to adjust to the changes at their own pace rather than being hit by the sudden shock of a drastic price increase.
2. Deliver more value and options for the price
If you want to raise your prices to earn more, it’s essential to make sure that the quality of service you offer is worth the increase. This will help you justify your price increases to your clients. Invest in your education and begin offering new or unique services and designs that set your business apart from your competitors. With these new services, you can justify charging more for those who want it, without raising the price for your basic cut a ton.
There are other upgrades (and upcharges) you can make to your services. Maybe you're upgrading your clippers, shears, and products used. Or, consider providing additional services like massages, facial treatments or beard grooming services. These can be a great way to make your current clients feel like they are getting more value for their money, making them more willing to pay the increased price.
3. Communicate the Changes with Your Customers
Once you have decided to increase your prices, it’s important to communicate the changes with your customers promptly. Inform them through email, social media, pricing signage, or even a notice in your barbershop. If you're providing new services or using upgraded supplies, be sure to let customers know that as well.
Whatever your strategy, giving your customers enough notice will help prevent any unpleasant surprises or confusion when it comes time to pay.
4. Assess Competitors’ Prices
Some clients are going to price shop, so it's important to know how your prices compare to the shops around you. Take some time to review the prices offered by your competitors and ask yourself some of the following questions: Are your prices competitive for the same services? Are you offering a great value by charging less? Do you deliver a better experience than your competitors, but your pricing doesn't reflect it?
Knowing the answers to these questions can help you gauge whether you've got the right price and help you understand how your prices will be perceived by clients who might shop around.
5. Continuously Track Changes
Finally, it’s important to track changes and results in your business after raising prices. Don’t assume that this change will bring you immediate riches, but analyze the outcomes of the changes you make. You may need to make changes to increase customer retention and try new ideas to maintain client loyalty after increasing your prices.
The right price point will keep your business growing
Raising prices may be daunting to most barbershop owners, but it’s important to keep in mind that you are running a business and your bottom line is crucial to stay profitable. You can't serve your community if you can't keep the doors open.
The success of your shop will depend on how well you communicate the changes, the value that you offer, and the efforts to keep your customers happy. By following the tips outlined in this article, you can raise your prices without losing your customers while still maintaining a high-quality service.
