BeautyCouncil Recommendation: An Industry-Wide Call to tackle inflation
We’re advocating for an industry-wide price review and adjustment to offset inflation and keep your business healthy.
As the year winds down, it’s the ideal moment to assess your business pricing and catch up with inflation. Today, we’re not just suggesting but strongly recommending that you adjust your service prices compared to your summer 2022 prices before the end of 2023.
What is Inflation?
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It’s usually expressed as a percentage. Inflation varies, however, on average, we recommend you consider a 7% increase in average prices compared to the summer of 2022.
The Value You Bring
You’re not merely offering a service; you’re delivering an unparalleled experience. Your continuous education, top-notch products, and possibly even certifications (like ours!) add immense value. Your pricing should mirror this and there’s no reason for you to suffer lower revenues as the world gets more expensive.
How to Implement your Price Increase
Transparency is crucial. Let your clients know about the upcoming price change and the rationale behind it. Importantly, inform them that this is not just your initiative but an industry-wide recommendation. Most clients will appreciate your openness. Consider offering package deals or loyalty discounts as a smooth transition into the new pricing structure.
But do not apologize
We understand that talking about price increases with your clients can be a sensitive topic, but remember, you have nothing to apologize for. You’re in this industry because of your skill, dedication, and the exceptional service you provide. This price adjustment is not only a reflection of the increasing costs of doing business but also an industry-wide recommendation aimed at sustainable growth. Your clients value your expertise and the unique experience you offer; a modest price increase won’t change that. Stand confident in your worth and the value you bring to your clients.
Only 15% of salons or spas have chosen to not increase their prices. We suggest all members review service prices and adjust before the end of 2023
Source: 2023 BeautyCouncil Member Survey
Member tool: One-pager to post with our recommendation
Need a handy, official-looking one page document with our recommendation? It’s a great way to say you’re just following industry guidelines. Download the full page PDF below or ask us to mail you one. Perfect to post in your waiting area, in the washroom, or anywhere else you want to share it.
We can help you!
If you would like to ask us about any price structures you would like help with, just contact us. We can offer to run your price list through our calculator (and even suggest best pricing practices) or help with your questions. This service is available to members – if your membership is not active, be sure to renew or sign up today.
The Bottom Line
Adjusting your prices isn’t merely about boosting revenue; it’s about acknowledging the value of your expertise, time, and exceptional service. So, heed the industry call and elevate your business to new heights.
We hope this post motivates you to make this essential change. After all, you’re worth every penny!
Learn more in our 2023 Annual Guide for details and other industry data.