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much advice needed regarding raising my prices

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  • much advice needed regarding raising my prices

    I own a small grooming salon where I groom full time and currently don't have any employees. My shop has been open for 3.5 years and it's done really well. I'm in a small town where I do have a lot of small and corporate competition surrounding me throughout the county. During the summer I stay booked out a month (last summer I didn't need to take new clients in from April-October) and during the winter a lot of my clients go out of state so i only stay booked out 2-3 weeks. I haven't raised my grooming prices in the period I've been opened, and I'm really on the fence as to what to do. My concern is losing some of my loyal clients or simply turning people away during the period when I do need new clients. I also receive amazing tips from my clients, which we all know is greatly appreciated, but I'm curious as to if a price increase would change that. For those of you that work a similiar small business, do you have any advice as to how you decided to raise them, when you knew it was right, and what percent increase you decided on? Any advice is really appreciated. Thanks in advance!

  • #2
    There have been several threads on this topic in the past so I'm sure you'll get some good feedback. If I remember correctly it is simply s matter of stating that prices will be increased by $--- effective --/--/---- to address increased costs in supplies and operational expenses. You can start by imposing ghis on the new clients and gradually get you long term clients brought up to date
    When I last adjusted rates I actually dropped the price for a few of my older weekly regulars 'to thank them for their loyalty ' and to help them out. Their incomes haven't seen an increase in some years ( thanks gov't) but their expenses keep increasing. It's not a lot but it has made a difference for a few and allowed them to maintain their dignity - and their pet.

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    • #3
      Just don't raise prices every year so you become expected. Every 2 or 3 years. Make them understand your costs go up like their household costs.

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      • #4
        There are some great ideas on other threads. It is a hard decision to make even though you need to. Here is what I did. As time goes by you will lose people for various reasons......as you take on new ones...raise the price for them. I also raised the price $1.00 on current customers last year and gave everyone a notice of this 2 grooms before it happened. No one complained because my prices had been the same for 6 years and being a home based business it is still well below corp. and store front shops. I also did the same as Honey/Chewie for some of my elderly customers. It all comes back to you when people know you care for them not just their pet. I have received many referrals and am at full capacity again with new customers. People know our products, shipping etc. increase so they will not balk at reasonable increases. Hope this helps.

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        • #5
          I wait at least 2 years before raising prices and it is more than $1, usually $2 or $3. I don't want them to think every year here we go, so predictable.

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          • #6
            I'm the opposite, I'd rather raise prices yearly and a small amount than wait and do a big raise. My costs go up every year, if I don't raise prices I am effectively losing money. Most clients don't even seem to notice. If you wait and let them get used to a price for a long time and then jack it up they complain like crazy.

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            • #7
              For sure giving them lots of advanced notice works best for me, like 3 to 5 months of notice. I remind them too. Very few complaints then. I guess they get used to the idea.

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