If you're working harder than ever and not making profit, there's a good chance your prices are too low.
But raising prices feels terrifying. What if clients leave? What if nobody books?
Here are the 3 signs you're definitely undercharging - and exactly what to do about it.
WHY YOU'RE STUCK AT LOW PRICES:
Fear #1: Clients will leave
(Spoiler: The ones who leave over £5 weren't your clients anyway)
Fear #2: Columns will be empty
(Reality: When you charge properly, you need FEWER clients to make the same money)
Fear #3: You don't feel "worth it"
(That's imposter syndrome talking. You're worth more than you're charging.)
THE 3 SIGNS YOU'RE UNDERCHARGING:
Sign #1: Fully booked but not making money
- Columns rammed, working 50-60 hours, barely scraping by
- You're discounting your time - making £10-15/hour after costs
- The market is telling you that you can charge more
Sign #2: You're attracting price-sensitive clients
- They ask "How much?" before "What can you do?"
- They negotiate, cancel frequently, don't tip, complain constantly
- Cheap prices attract cheap clients
- Premium prices attract people who value quality
- "Every time you price someone out, you price someone in"
Sign #3: You're cheaper than competitors (and shouldn't be)
- If competitors charge more and you're equally good (or better), you're leaving money on the table
- Don't obsess about competitors when setting prices
- Don't let someone else's business model dictate your charges
- Premium pricing = premium perception (and better coffee, training, decor)
HOW TO RAISE PRICES WITHOUT LOSING EVERYONE:
Step 1: Run the numbers
- Understand WHY you're charging what you do
- Set prices based on the profit YOU want to make
- Make it a no-brainer for the right customers
Step 2: Announce it properly
- 4 weeks notice minimum
- Small sign on reception: "From 1st March, new prices"
- No apologies, no drama
- Current clients can rebook today at old prices (increases rebookings)
Step 3: Handle pushback
- Most people complain but don't change behavior
- Listen, but don't negotiate
- Tiered pricing helps retention (can't afford top stylist? Book someone else)
Step 4: Replace the clients who leave
- That's a marketing problem
- The right clients will find you at premium prices
YOUR ACTION PLAN:
Put a date in the diary. If it were me: 1st March.
That gives you 2 weeks to set new prices and get the announcement up.
RESOURCES:
Get Paid Properly (Profit & Pricing Program): https://getpaidproperly.com
→ The complete system for setting profitable salon prices
WORK WITH ME:
Salon Spark: https://salon-spark.com
→ £75/month, cancel anytime, try it for £1
1:1 Coaching: https://buildyoursalon.com
→ Book a call for intensive pricing and profitability help
WHO I AM:
Phil Jackson. Ex-salon owner (award-winning, since 2001). Now I coach salon owners who want profitable businesses without the hustle BS.
In my own salon, we promised to be the most expensive haircut in town. If anyone matched our prices, we'd immediately increase ours. Some people came to us BECAUSE we were the most expensive.
WATCH/LISTEN:
YouTube: https://youtube.com/@buildyoursalon
Apple Podcasts: https://apple.co/3MZp6jP
Website: buildyoursalonpodcast.com
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CHAPTERS:
0:00 - Working Harder, Not Making Profit
1:12 - Why You're Stuck at Low Prices
2:02 - Fear #1: Losing Clients
2:55 - Fear #2: Empty Columns
3:48 - Fear #3: Imposter Syndrome
4:35 - Sign #1: Fully Booked, Not Making Money
5:31 - Sign #2: Attracting Price-Sensitive Clients
6:23 - The Groupon Story
8:01 - "Every Time You Price Someone Out, You Price Someone In"
8:50 - Sign #3: Cheaper Than Competitors
10:29 - How to Raise Prices Without Losing Everyone
11:06 - Step 1: Run the Numbers
11:50 - Step 2: Announce It
12:35 - Step 3: Handle Pushback, Step 4: Replace Clients
#salonpricing #salonprofitability #raisingprices #undercharging #salonowner
Questions? Email: phil@buildyoursalon.com
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