By Shanalie Wijesinghe, Director of Education, Boulevard
For salon owners and stylists, the hope that inflationary pressures would quickly come and go has faded. Most economists anticipate inflation remaining persistently high throughout 2022 and likely beyond. With inflation here to stay, those who have thus far held off on raising rates may soon find themselves with little choice.
There is good news, though. A recent survey of 500 salon industry clients conducted by Boulevard shows that you’re likely to face little if any pushback if and when you raise rates—provided you communicate clearly and proactively.
Let’s dig deeper into some of the survey findings and discuss the implications for your business and some of the steps you can take to increase rates with minimal disruption to your client relationships.
Clients are Ready and Loyal
Your clients live in the real world—same as you. They’re well aware of inflation’s impact and are realistic about the increased cost of goods and services. Boulevard’s survey confirms as much, with 60 percent of clients saying they expect rates to rise at their salon. That you may need to raise your rates at some point will not come as a shock.
More importantly, raising rates will not drive your clients away. According to the survey, 92 percent of clients are willing to accept a rate increase of some sort before they will consider seeking a less expensive provider. Even more encouraging, 60 percent of clients are willing to accept an increase of at least 10 percent. That’s significant. And if you’re a stylist worried about tips, don’t be: 60 percent of respondents say they will tip the same or more if rates go up.
Communication Is Key
As with just about everything you do in the salon, communication is paramount. Boulevard’s survey shows that 80 percent of clients consider it important for stylists to communicate about rate increases in advance. Your clients know rates are likely to increase—all they’re asking for is a courtesy heads up.
First, take time to educate your stylists and get them comfortable with this topic. If you’re not comfortable talking about money with your staff, how can you expect them to be comfortable doing the same with clients? Then, before your increases go into effect, have frank conversations with your clients about the realities you’re facing. Chances are they’ll empathize.
Personalize the Process
Respondents were split between a preference for having rates raised all at once or having them raised incrementally. So, to the extent that time and financial circumstances allow, see if you can personalize the experience. Again, communicate openly so that both parties understand where the other is coming from. If incremental increases aren’t realistic for your business, at minimum, honor your previous rates for that day’s services, and charge your new rates effective the next visit.
Relationships Carry the Day
Here’s the bottom line: In the salon industry, relationships are what matter. If your work is good, you’ve built meaningful relationships, and you communicate about your rates proactively and on a human level, your clients will stick with you.
About Shanalie Wijesinghe
Shanalie Wijesinghe is the Director of Education at Boulevard, where she lends her industry and platform expertise to both in-house staff and partner salons and spas. A salon industry veteran with more than 14 years of experience working for high-end luxury salons such as Sally Hershberger and BENJAMIN, Wijesinghe was previously a sales engineer for Boulevard and blends her knowledge of the beauty and technology industries to help put the company’s partners and employees on the path to success. A Bay Area native and first-generation immigrant, Wijesinghe is a graduate of the Paul Mitchell School specializing in cosmetology, styling, and nail instruction.