Whether you’re a new eyelash extension business or an established one, it can be difficult to figure out when and how to raise your lash prices. Since consumers are so used to the way pricing works in the beauty industry, it’s likely that you feel comfortable with the way things are right now – but have you considered raising your prices and what this might mean for your business? At some point, you’ll have to consider whether to raise your lash prices to stay in business and keep earning more money. Before you make any decisions, consider these factors that will help you decide if it’s time to up your lash prices in order to improve your bottom line and keep customers coming back.
- 1 How do I know if I should raise my lash prices?
- 2 When am I ready to start charging more?
- 3 How much will my clients be willing to pay?
- 4 How much do companies charge?
- 5 What to do to not lose clients?
- 6 What else do I need to know about raising my price? (for eyelashes)
- 7 Is there an alternative to raising my price?
- 8 Conclusion
How do I know if I should raise my lash prices?
Increasing prices on a recurring basis are one of the most effective ways to grow your business. However, it’s not as simple as just raising your prices and hoping for increased sales – you need a strategic plan in place that takes time and work. In today’s post, we’ll cover 4 questions you should ask yourself before increasing your lash price. Answer each one carefully and honestly, then decide if now is a good time for you to raise your lash prices.
#1 – Is my booking rate low? If so, don’t worry! Just take some time getting used to filling up slots before raising prices. It may seem counterintuitive, but raising your lash price too soon will cause cancellation rates (and therefore revenue) to drop significantly!
#2 – Do I have enough clients to support a higher lash price? Remember, raising your lash prices doesn’t mean more clients are going to magically appear out of thin air. Make sure you’re already doing everything possible to fill up all available appointment times before deciding to increase your pricing.
#3 – Do I have enough staff members trained and ready to go? Raising your lash prices means more appointments booked, which means more money coming in…but only if you have enough staff members ready and able-bodied enough to handle all those new appointments! Don’t forget about training costs either; training new employees can be expensive, especially when they leave after only a few months or less because they weren’t properly trained from day 1.
#4 – Are my prices competitive with other salons in my area? This is an important question to answer before making any pricing decisions. Check other salons’ websites, call them directly, and even visit their locations if possible. Keep track of how much they charge per service and compare it to what you charge at your salon. If you find that your prices are comparable or lower than others in your area, there’s no reason to raise them right away unless you feel like there’s a significant benefit for customers when paying more for services at your salon (such as high-quality products).
When am I ready to start charging more?
Well, you need to make sure that your costs are covered first and foremost. If your prices are too low, you’ll lose money on every client appointment—which means that it’s time for a price adjustment. But before you raise your prices, make sure there isn’t any room for more efficiency in your work process. (i.e., Are there ways that you can better manage your supplies or market yourself so that they last longer?) Doing everything possible to minimize unnecessary expenses will give you peace of mind when you raise prices and it gives clients a signal of high quality: they will feel like they’re getting more bang for their buck.
How much will my clients be willing to pay?
It’s hard to set your prices accurately, especially if you have no idea how much your competitors are charging. This can be frustrating and confusing. If you charge too little, you won’t make a profit, but if you charge too much, you may lose clients. So how do we determine what our product is worth? The key here is knowing your market and knowing what your services or products mean to potential clients. Do they want premium service or a low-cost product? What will they pay for each option based on quality and perceived value? What expectations do they have of your brand or company as a whole, in terms of service standards, reputation and quality control? All these factors play into your pricing decisions. To figure out what to charge, try asking yourself: What would my ideal client be willing to pay for my services? Then compare that with your actual costs—what it takes to deliver those services. Finally, consider how much time it takes to provide those services (and whether you’re able to provide them at scale). Once you’ve considered all these factors, calculate an average price per unit (which could include hours worked) and then add a markup percentage that represents profitability—but don’t forget about taxes!
How much do companies charge?
As with any good consumer product, there’s a big range in price among companies offering eyelash extensions. Before you set your prices, it’s a good idea to get an idea of what other similar businesses charge. Just keep in mind that clients are quick to comment on fees—good or bad—so take those with a grain of salt. A better option is surveying customers and colleagues who have recently tried out some different lash extension companies; ask them about their experiences and how much they paid for their services.
What to do to not lose clients?
If you’ve been in business for a while, you’ll know how hard it is to acquire new clients. In fact, doing so is one of your greatest challenges as an entrepreneur. Once you have a regular client base, though, it can be even more difficult: It’s your responsibility not only to keep that customer happy but also to grow with them over time. And if there’s ever a situation where growth isn’t necessary—where your clients are fine with remaining as they are—you still need contingency plans in place should that happen unexpectedly. This means being prepared for when your customers want to make changes or leave altogether. While it may seem counterintuitive, raising prices on products and services will actually help you retain those customers who love what you do and want to continue working with you. By giving your clients what they want (more of what they like), they’ll feel less inclined to leave or look elsewhere because their needs are being met. The result? More money in your pocket and less stress on yourself.
What else do I need to know about raising my price? (for eyelashes)
So you’ve decided that, yes, you do want to try raising your prices. What else do you need to know before implementing a price increase? A few things: What is my competitor doing with their prices right now? Are they increasing, decreasing, or staying consistent with what they were doing before? And why are they making these changes—what motivates them to change their price points in such a way and does it affect me, personally? Is there room for us both (my brand and theirs) in that market space we share, based on our respective price points? Will customers buy at my higher price point? If not, then I probably shouldn’t raise my prices yet. This may seem obvious but if I can’t answer yes to all of these questions, then I probably shouldn’t raise my lash prices just yet. If I don’t feel confident about any of those answers (and there’s no one clear-cut answer), then maybe I should wait until I have more information before deciding whether or not to raise my lash prices.
Is there an alternative to raising my price?
Maybe you aren’t able to raise your prices. In that case, consider cutting costs elsewhere. If you’re paying too much for equipment or supplies, have your suppliers give you a better deal—then pass those savings onto customers by lowering prices. Focus on offering quality products and services and customers will be willing to pay higher prices for them. Another option is finding a new angle: Think about ways that you can improve your value proposition for potential customers instead of asking them to pay more (e.g., training workshops instead of individual lessons). The more effectively you position yourself as an authority in your industry, the greater opportunity you’ll have when it comes time to ask for more money from clients.
When you have been selling your eyelashes at the same price point for quite some time, you may find yourself wondering whether it’s time to increase the price on your product. While increasing prices can be an effective way to boost profits and grow your business, it can also backfire if you’re not careful with how you do it. To help make sure you get the most out of any price increase, keep these tips in mind when making the change!