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Is It Time to Raise Your Prices?
By: Lauren Gartland
Posted: August 29, 2012, from the September 2012 issue of Skin Inc. magazine.
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You may lose about 10% of your clients; yet, consider that you will actually be earning more while working less. You also want to replace those clients with your ideal clients. It is also important to have someone to refer clients to if you reach your peak capacity; ideally, to a new or junior skin care professional at your facility.
Always tell clients about an increase ahead of time, so it won’t be an unwelcome surprise. If you see clients every six weeks, then post an announcement six weeks before you raise prices. It’s important that your clients see it at least once before the increase is effective. You could place signs in your treatment room, send an e-mail to your client list or mail out an announcement letter. Word your announcement professionally and positively. Always open with a “thank you” for their business and acknowledgment of your appreciation. State the exact date and details of the price increase.
You probably assume that people are going to ask the reason for the increase; however, typically, they do not say anything. They actually expect prices to be raised. Remember that you do not need to go into detail when explaining your price increase; don’t talk about your personal expenses. Eliminate the drama. Do not be attached to what your clients choose to do. It is not personal; it is business and you are treating your career as a business and not as a hobby.
Remember that money is simply an exchange of value. People will pay more as long as they feel they are receiving more than they are paying. Let clients know the value and benefits of your services with your educational and promotional materials. Give them extra value and results by offering add-on services, while also increasing your treatment and retail tickets. Take action now by making the decision to grow your skin care business to ultimately create the life and career of your dreams.
Lauren Gartland is the founder, president and CEO of Inspiring Champions, and has worked in the spa industry as a sales consultant, a distributor sales team manager and a distributorship owner since 1983.