Raising Your Prices and Charging Your Worth

business

 

 

How many times have you heard in this industry that “time is money, and money is time?”

(And the sea of hands goes up, am I right?)

I can’t tell you how many times I’ve heard that in my career. It always felt foreign to me, to be honest. I feel like I  was being told to rush the process in order to make money. I would see other stylists who could get a highlight and haircut out the door in 1.5 hours, while I was spending 2.5-3 hrs on that client. It felt like I had to pack in the clients, work 10-12 hour days, and to just learn to settle into the fact that my body was just going to hurt all. the. time. I watched the big stylists on Instagram do it, I’ve watched my colleagues in the past do it, and I’ve seen burnout from painful shoulders, carpal tunnel, or just pure exhaustion causing stylists to be sick week after week and just “pushing through it” because that’s what you’re supposed to do. We’re told (sometimes even subconsciously) that if you’re not working long hard days, you’re not working hard enough.

I want to change that mentality.

Something clicked for me one day; worth and time are not the same thing and we need to stop forcing it to be. Knowing your worth in this industry is the most important part of keeping you healthy, educated, fulfilled, and HAPPY. Knowing your worth means reflecting on how much time, energy, and education you’ve put into your career and focusing on the value you bring to your clients.

I am currently working three 8 hour days in the salon and I’m making the same amount of money that I was making when I worked five 8-10 hour days in years past.

Why is that? Because I started charging my worth and made my time more valuable.

Over the last few years, I started to invest in education to grow my skills and I started to change my mentality about my worth.

I stopped thinking about just the service for what it is, meaning client comes in gets their hair done, leaves, and that’s it. I started to think about the experience as a whole meaning client finds me on Instagram or gets referred by a friend, they check out my social media and website, they email me to make an appointment, they get confirmation texts two days before, they arrive to their appointment, we offer them beverages and snacks, we go through a thorough consultation talking about their needs, lifestyle, etc, I do their hair and explain what I’m doing every step of the way, while we’re styling their hair, I teach them about products or give them styling lessons, at the end of their appointment, I ask if they would like to schedule their next appointment to stay on my schedule since I get so booked up in advanced, then we finish with taking photos of their hair so I can post on my social media. The full client experience, not just a service.

Beyond overbooking yourself or rushing through services, the more education you invest in and the more value you provide to your clients and their client experience means you will start to book up more and more. Which then leads to more referrals and that all means you are at a point where you as a hairstylist and the services you provide are worth more. It’s as simple as that (even though it may not feel as simple as that).

So how do you know if you’re ready to raise your prices?

Pay attention to your schedule. You need to know your value and worth. If you are booked out over a month in advance, it’s probably time to raise your prices. If you haven’t raised your prices in over two years, it’s probably time to raise your prices. If you’ve been growing your clientele through social media or referrals at least 20% per calendar year, you probably need to raise your prices.

Because I have consistently grown my business by creating that amazing client experience and giving my clients a great quality service, I am crazy booked and I’m able to charge more because now my time is more valuable. Instead of rushing through things and trying the beat the clock to make more money, I shifted the way I treat my business and now I’m spending more time, but creating more value. Make your time more valuable.

How did I raise my prices?

I am raising my prices significantly on Nov 1st. Honestly, when I first settled on that, I was scared to do it. I had already raised my prices earlier this year, but I needed to do it again because I was getting too booked and couldn’t get my regular clients in.

It’s not easy to raise your prices and know that you’re going to lose clients. You’ve invested your time in them, but have also, most of the time, formed strong bonds with your clients and you’d hate to see them go somewhere else. I get it. However, you can’t let that negatively impact your forward projection and potential to be as successful as you want to be!

What I did, was I wrote a nicely worded letter and I put it inside my Client Gift Boxes (check out that blog post here) to give them to during the holidays. I also would let them know at the end of their appointment as I gave them their gift that there was a letter inside about my price adjustment. I also posted a version of this letter on my Instagram Page and Facebook pages with a link to my website with my new pricing on it. This was to let some of my clients know who may have not been in the time I had been telling people. And lastly, I posted a small sign at my station with a brief statement about how my prices were increasing and what my new prices would be. That way, I felt like every client saw it and there was no one feeling like they didn’t know.

What to keep in mind when you’re writing your letter:

  • Tell them how much you appreciate them and their support!
  • Let them know the value you bring to them as their stylist.
  • Share with them the reasons why it’s time for you to raise your prices.
  • Tell them why it’s going to be better for them (example: more appointment availability)
  • Offer them a solution if they cannot join you in the increase.
  • Let them know you are open to discussion!

 


Here’s letters I wrote to my clients in years past:

When I was working alone in my Suite:

Dear Clients,

I love and value each and every one of you. Without your support and loyalty, I would not be where I am today.

As I look back at 2016, I have grown as a stylist immensely. I have poured a lot of time and energy investing in learning from some of the best artists and educators in the hair industry to make your experience in my chair something unique and valuable. I look forward to 2017 as I continue to inundate and surround myself with the newest techniques and trends.

My goal with each appointment is to provide you with a relaxing experience, healthy hair that looks good until your next visit, and a style that compliments you and helps bring out your best features so that you can feel confident every day.

The value I offer to my clients does not stop in my chair, but goes beyond that. I give each client a result they can take home with them along with lessons on how to style and maintain that look at home day-to-day. I also make myself available to schedule appointments and answer questions outside of normal business hours.

As many of you have seen, this past year was not only a year of personal growth, but also a year of massive business growth. My schedule became increasingly busy and it was, at times, hard to schedule an appointment.

Therefore, starting January 1st, 2017 due to high demand, I will be implementing a Price Revision for my services. I am doing this so that I can spend the perfect amount of time with each client to focus on your unique needs. I also hope to make appointments more available to you as my clients so that you can get the dates you prefer.

I don’t say this often enough, but I love and appreciate my relationships with you. Thank you again for your loyalty and support. Committed to giving you my best,

Jamie Dana

Here is the letter I wrote now that I have an assistant/second stylist:

Dear Clients,

I love and value each and every one of you. Without your support and loyalty, I would not be where I am today.

As I look back at 2017, I have grown as a stylist immensely. I have poured a lot of time and energy investing in learning from some of the best artists and educators in the hair industry to make your experience in my chair something unique and valuable. I also have spent a lot of time educating other stylists in the hair industry as well. I look forward to 2018 as I continue to inundate and surround myself with the newest techniques and trends.

My goal with each appointment is to provide you with a relaxing experience, healthy, low maintenance hair that looks good until your next appointment, and a style that compliments you and helps bring out your best features so that you can feel confident every day.

The value I offer to my clients does not stop in my chair, but goes beyond that. I give each client a result they can take home with them along with lessons on how to style and maintain that look at home day-to-day. I also make myself available to schedule appointments and answer questions outside of normal business hours.

As many of you have seen, this past year was not only a year of personal growth, but also a year of massive business growth. My schedule became increasingly busy and it was, at times, hard to schedule an appointment.

Therefore, starting November 1st, 2017 due to high demand, I will be implementing a Price Revision for my services. I am doing this so that I can spend the perfect amount of time with each client to focus on your unique needs. I also hope to make appointments more available to you as my clients so that you can get the dates you prefer.

That being said, I understand that my new pricing may be out of your budget at this time. However, Annie will be taking new clients on Tuesdays and Thursday with evening hours on Tuesdays.

As you have gotten to know Annie over this past year, she has watched me do your hair and learned my techniques and formulas. I included her pricing and contact info in case you need to make the switch to her. Annie still works for me, so you are supporting me indirectly by seeing Annie for your hair.

Of course, I would hate to see you go, but I understand that each client’s budget cannot accommodate my new pricing. Instead of leaving you to go have to find another stylist or salon, I wanted to give you an option that would work for both of us. It makes me sad to see my clients have to transition away from me, but my hope is that Annie will be able to take care of your hair needs just like I could.

Also, for those who aren’t quite ready to make a full transition over to Annie, but still want a budget friendly option, we are offering maintenance appointments with her. You would go to her for your maintenance appointments such as root touch up, express color, toner, all over color, etc and would come to me in between for the full appointments such as highlights, balayage, cuts, etc.

Please feel free to express any questions or concerns you have about my new pricing or transitioning to Annie. We are both an open book and I want my clients to feel comfortable asking us anything or discussing anything with us.

I don’t say this often enough, but I love and appreciate my relationships with you. Thank you again for your loyalty and support. Committed to giving you my best,

Jamie Dana

 


By showing your clients the value you bring to them by being their stylist will help them see your value and will pay you your worth. 

Feel free to use my wording of my client letters as inspiration for your client letters. It can be hard to figure out exactly how to word yourself so that you come off as positive and that this is a good thing for your clients as well. The last thing you want to do is make it seem like a bummer for them, focus on the value you bring and how your price increase is going to be better for them.

I hope this post has helped you and as always, feel free to share this with a fellow stylist! If you do a post part of your letter on Instagram, be sure to tag me so that I can cheer you on!

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