Diana, This is what we are facing in our Salon. We will be open 2 years soon. Oh yeh that's where I have been the past 2 years, helping to get a new salon off the ground. We have incurred Price increases on EVERYTHING! We started our prices low to encourage new clients. You case is just a little different.
If I were still on my own? Other just talking about it I would do this. Make little sign card that sat very plainly on your desk stating due to product, education, business maintenance fee and now rent increases you are forced to increase your rates. ALSO..... Write a nice letter to your clients stating just what you said to us. Sort your client list out into a couple categories: Long Term Loyal, Standings: Occasional You get the idea. Then Taylor a letter to each group. For Long Term Loyal Clients Dear Client, I have enjoyed our long term relationship over the years. So much so that I have I have Neglected to raise prices for your (AC or what ever )services even though "I" have incurred many price increases for my Products, Education Business Maintenance Fees.(Neglected means it is your fault and REALLY should have done it sooner!) At this point in time I am facing a new lease agreement and higher rent prices. I have no choice but to raise my prices if I want to continue to provide this pleasant hour and the Excellent Standard of Service you have come to Expect from Me. I am sending this note to you because I do value you as a client and want you to understand it's necessity. The prices will go into effect as this date, and I hope to continue to provide your services. Blah Blah Blah Diana Bonn For each level of Client after that you can modify it to be less personal. But I would SIGN each one personally. NO ONE likes surprises! IF they know why, when, and all the details they get more comfortable with the idea after looking at the sign on your desk for a month or 2. It takes the sting out. I know of a Salon owner who did a bunch of renovations. One day she put up instant price increase with no warning. Not only did she lose a great deal of clientele she lost most of her employees in a walk out. The letter makes it more personal and show you gave a great deal of thought to it and THEM before doing it. Anyway that's the way "I" would do it and have seen it done successfully before. Your tips may be a bit less than before. But in time they should come back up. If the price list is plain on your desk where they write their check they will see how much they need to "round up" to. Hope this helps a little. Sheryl Goldberg The Experience Salon & Spa Wheeling, IL -----Original Message----- From: [email protected] [mailto:[email protected]] On Behalf Of Diana Bonn Sent: Monday, February 16, 2009 7:40 AM To: [email protected] Subject: NailTech:: my question about raising prices/tips okay, our booth rent goes up $20 a week April 1st. A big jump, but they gave us a 3 year contract when we first started with a gawd awful low deal we all couldn't refuse. Well the 3 years are up!!! I have slowly notified my clients that I am raising my prices, but haven't decided how much yet. I have not raised my prices for years because of well, these clients have been with me for years and when I moved to this salon, my costs went down, so I didn't raise prices(enhancements only, I did raise prices on mani and peds)) I know, I know maybe I should have raised enhancement prices, but I didn't, that is in the past now. Now probably 25% of my clients gave me "raises" by extra tip money over the years. I have 2 clients that give me ZERO tips. One that can't afford it, the other one is rich, and thinks she can't afford it and also thinks that since I am not an employee that I am "pocketing" all this money as income (with no expenses), yeah right. 95% of my clients write checks, a couple of charges, the same amount week after week, tips included. I put this in the bank, so basically except for these two clients the cost of the service plus the tips covers my expenses and income. So my question is, when you raised your prices, did they continue to pay you the same or did they up your amount on the check/charge? I am thinking here, everyone is on a tight budget, If I raised my prices by lets say $2, I could actually see these clients paying me the same exact amount, (lowering my tip) and with my two zero tip clients, I would be gaining $4.00 a week!!!!!!!!!!! LOLOLOL I know the old saying, never count on tips as income, price what it takes now, then tips are gravy. Well I realized over the years that the tip added, that I have used this amount as part of doing business,(my gross). What a mess this is. You also have to realize, that I hardly get any walkins, maybe 5 a year. All are referrals from my clients or stylists. Anyone have any suggestions on this mess I am in, $20 a week is something I have to come up with. somehow. and right now in an extreme case, I am thinking I will gain $4 a week. thanks for any info. diana from indiana No virus found in this incoming message. Checked by AVG - www.avg.com Version: 8.0.237 / Virus Database: 270.10.24/1954 - Release Date: 02/15/09 18:09:00 --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "NailTech" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/NailTech?hl=en -~----------~----~----~----~------~----~------~--~---
