You know you need to raise prices, but you've been putting it off because you're worried clients will leave. Most won't, and the ones who do were probably costing you more than they were worth.

Why you're probably undercharging

When did you last raise prices? If the answer is "more than a year ago," you're effectively earning less than you were because your costs went up: rent, products, wages, utilities, insurance. Your prices stayed flat.

That's a pay cut you didn't notice because it happened slowly.

Inflation since 2020 means £50 then is worth about £40 now. If your cut and blow-dry was £50 in 2020 and it's still £50, you're charging 2020 prices with 2026 costs.

The fear is worse than the reality

Most salons that raise prices find the reaction is far quieter than they expected:

  • Most clients say nothing. They notice, but they don't care enough to mention it.
  • Some clients thank you. They've been wondering how you were managing and they genuinely want you to stay open.
  • A few grumble. Usually once, then they keep coming.
  • Very few leave. And the ones who do? Often the ones who complained most, tipped least, and took up the most energy.

The clients who value you will stay, and the ones who only valued your low prices were never really loyal anyway.

How much to raise

There's no magic formula, but a few reference points help:

  • Cover your cost increases. Add up what's gone up since your last rise: rent, wages, products, employer NI. That total is your minimum.
  • Check competitors. Not to match them, just to know where you sit. If you're the cheapest salon in your area, you're leaving money on the table.
  • Round to clean numbers. £52 feels awkward, £55 feels like a price, and £50 feels like a deal. Pick numbers that look intentional.

For most salons, 5-10% annually is reasonable. If you've not raised in two years, 10-15% isn't unreasonable given recent inflation.

When to do it

Good times to do it:

  • January, because new year, new prices and everyone expects it.
  • After a refurb or improvement, when you're visibly giving more and charging more makes obvious sense.
  • When you're fully booked, because if you're turning people away, your prices are too low.

Avoid:

  • Right before Christmas, when people are already spending more than usual.
  • During a quiet patch, because it looks desperate even if it isn't.

How to communicate it

Keep it simple.

What to say:

"Just to let you know, our prices are increasing from [date]. Here's our new price list. Thanks for your continued support."

That's it. You don't need to apologise or write a lengthy explanation about the cost of living, because everyone already knows costs have gone up.

How to tell them:

  • Email or text to your client list, 2-4 weeks before
  • Notice at reception
  • Mention during appointments in the week before

Give people a chance to book at old prices if they want. It's a nice gesture and avoids surprises.

What not to do

  • Don't apologise. You're running a business, not a charity. Apologies make it seem like you're doing something wrong.
  • Don't over-explain. Long justifications sound defensive, so state the change and move on.
  • Don't do it piecemeal. One clear increase is better than three small ones that keep surprising people.
  • Don't negotiate. If someone asks for the old price, hold firm because one exception becomes ten.

If someone does leave

It happens, though usually to fewer clients than you expect.

  • Let them go gracefully. "I understand. We'd love to see you again if circumstances change."
  • Don't chase. Discounting to keep one person defeats the entire point of raising prices.
  • Fill their slot. You'll probably fill it with someone who values your work and pays full price.

Losing a few price-sensitive clients while keeping everyone else at higher rates is still a net win.

Price is a signal

Your prices tell clients what your work is worth. Skilled colourists, professional products, a clean and well-kept salon: all of that costs money, and your clients know it.

Undercharging just means you can't pay your team properly, you can't invest in training, and the salon starts to look tired. Raising prices is how you keep the whole thing running at the standard your clients already expect.