Top Navigation

Raising Prices in a Tough Economy – Tips for Salon Owners

Salon owners, like business owners across industries of every kind, are struggling in this tough economy to make a profit. Many salon owners are trying to find solutions to these challenges by trial and error. In an effort to keep top hairdressers, salon owners may have resorted to any number of the following: recruiting top stylists from their competitors; paying commissions that are too high; or renting out stations just to survive.

Raising prices of services, individual stylists and/or products, are options you may want to consider. Here are a few tips to keep in mind:

Positive Word of Mouth Referrals and Salon Demand – Referrals will be your score card in helping you decide when and how to raise prices. Monitor your customer return rate for each member of your team. If your referral rate is high, then you should consider raising your prices.

It is important to note before you raise prices, you must first create a demand, and then consider raising prices with individual salon team members, or raising prices for the entire salon.

Raise Salon Prices not Commissions – Raising prices is a win-win situation for salon owners and rewards your hairdressers for their hard work and dedication.

Deciding When to Raise Prices – Once you’ve created a demand for services and have a high rate of customer returns and referral, adjust your pricing as needed. However, if your salon is not busy, you may have to keep your existing prices stable until you are able to create a demand for your services. The best time to raise prices is 2-4 weeks before your busy season. January and February are notoriously slow months, as is “tax time” in the US!

Rule of Thumb for Price Raises – Generally, small increments is best. Chemical services can be raised by $5.00, or hair cut prices by $2-3.00 depending on your salon’s reputation.


Getting the Message Out – Before you announce price increases to your clients, have an all-staff meeting to discuss the changes.  Be sure your staff knows how to present the increase in the best light.  Once you’ve met with the staff, create a simple sign that can be displayed near your sign-in or reception desk.   List the services and/or team members that are affected.  A simple “Thank you for your understanding and continued patronage” statement goes a long way.

Using Social Media

E Mail Marketing

Hiring a Publicist

, , ,

0 Responses to Raising Prices in a Tough Economy – Tips for Salon Owners

  1. Laura January 19, 2011 at 3:37 pm #


    This is such a great blog. It is great to see business owners helping other business owners. I really appreciate you helping salons and spas getting the word out about their business and generating a new clientele.

    I provide salon internet marketing and website design and development to salons. If you know of any clients that could use my services let me know.

    Thanks again for the blog. This is such great info!

    • Jon January 19, 2011 at 4:10 pm #

      Thank you for your kind words, please spread the word.

Pin It on Pinterest

Share This