A Stylist Who Gets $375 for a Men’s Haircut…

When was the last time you raised your prices…six months ago…a year ago…two years ago?

I spoke to a salon owner just last week and she said 4 years ago!  Really?  I asked her if she was trying to go out of business.  She claimed she wasn’t.  I told her she had better try less.

Let me tell you what most salons owners say to me AFTER they just raised their prices (no matter what the increase…by the way).

“Geez, I wish I would have raised them more…hardly anyone complained”

And you can count me as one of those salon owners!

That’s right…I raised my salon’s prices by 20% across the board and no one complained.  That was in early April 2014.  It’s now mid-June and I’ve experienced zero drop-off.  That’s not a typo…zero drop-off in client count!

Now I’m sure there were a few clients who raised an eyebrow or two…but not enough to go elsewhere.

According to marketing legend Dan Kennedy…less than 15% of people make buying decisions based entirely on price.  That’s not to say that price is never considered…it is…but not nearly as much as you think.

I know a salon owner on Newbury Street (in Boston) that charges $375 for a men’s haircut.  And he has plenty of clients too.  Is he really 10x better than the stylist who charges $37 for a men’s haircut?

Of course not…

But he realized a long time ago that service prices were basically inelastic.

Meaning a large change in price is accompanied by a small change in quantity demanded.  In other words…walk the walk…believe in yourself…and charge more (much more).

Think of it another way…

If you’re a real pro…you are rare.  I mean…really rare.  Clients do not value you more because you charge less.  Do yourself a favor and read that aloud.

Clients do not value you more because you charge less.

The reason that most salons charge less than they should is because of the psychological junk in their own heads…not their client’s heads.

So, if your salon increased prices more than a year ago…give your clients a six-week head’s up on the price increase…then raise them across the board.  And don’t be shy!

Also, if you haven’t instituted service cost deductions in your salon yet…this is the time to bite the bullet and make it happen.  A service cost deduction occurs when a salon owner deducts a certain dollar amount per service to cover the cost of color, back bar, etc.

If you’re not doing that yet…you’re also trying too hard to go out of business!

Trust me…you will be thanking me down the road for pushing you into it.

As always, aim high…and dream even higher…

Steve Sampson