Now is the perfect time to review your menu as we prepare to reopen. The chances are your business has had to adapt over the last year — maybe you’re in a new location or perhaps you’re outgoings have changed, but have you adapted your pricing plan to match those changes?
A solid pricing plan is the foundation of any successful business and will help support your business goals. We’ve pulled together a few things to bear in mind when reviewing your menu and making pricing changes.
Understand your business
Before you change any prices make sure you’re clear on what you offer. It’s important to know your worth and understand the type of experience a client can expect to receive when they visit your salon. Whether you offer high-end luxury experiences or something a bit more relaxed, make sure your prices correctly reflect the type of service.
Regularly review your prices
It’s a good idea to review your prices once a year, taking into account any changes to your business or financial goals. Smaller yearly pricing changes are less noticeable to your clients while giving you the chance to match where your business is at.
Though it’s important to review and alter your prices, try not to do it all the time. Changing them too often can confuse or annoy your clients, while not changing them at all can mean you may be undercharging. Once a year puts you in a happy middle.
Keep it simple
A simple and easy to navigate menu creates a seamless booking experience for your clients and makes it clear what they are paying for. A clear menu also helps your staff when it comes to charging clients, reducing the chance of them undercharging or overcharging for services.
Use tiered pricing structures
Pricing levels are also a great way to appeal to lots of new clients with different budgets.
Giving clients different options also enables them to continue visiting your salon should their financial circumstances change. If you have therapists or stylists with differing levels of experience make sure you list them in your menu and price each of them accordingly.
Add value to your services
Try not to raise your prices for the sake of it. Make sure that you not only have a valid reason for any changes but that you’re adding extra value too.
Adding value doesn’t necessarily mean making big changes — otherwise, it can go against the business reasons for raising your prices in the first place. It can look like incorporating complimentary extras with your service. It’s a great way to raise the experience for the client and is an extra justification for the price.
Communicate any changes
Any pricing changes should be communicated to clients clearly, effectively and with plenty of notice. Make sure your menu is updated across all channels, including online and in-salon, so clients have access to one clear, uniformed pricelist.
Be honest about why the changes were made — clients are often happy to pay slightly more if there is a valid reason behind it and quality isn’t compromised.
Check out this webinar to delve deeper into pricing strategies and how to navigate your pricing changes well.
