You know you need to raise prices. You've been putting it off because you're worried clients will leave. Most won't. Here's how to do it properly.
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. Your costs went up. Rent, products, wages, utilities, insurance—all of it. Your prices stayed flat.
That's a pay cut. You just 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
Here's what happens when salons raise prices:
- Most clients say nothing. They notice. They don't care enough to mention it.
- Some clients thank you. They wondered how you were managing. They 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. The ones who only valued your low prices were never really loyal anyway.
How much to raise
There's no magic formula. But here's a sensible approach:
- Cover your cost increases. Add up what's gone up since your last rise. Rent, wages, products, NI. That's your minimum.
- Check competitors. Not to match them—just to know where you sit. If you're cheapest in your area, you're leaving money on the table.
- Round to clean numbers. £52 feels awkward. £55 feels like a price. £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
Best times:
- January. New year, new prices. Everyone expects it.
- After a refurb or improvement. You're giving more, so charging more makes sense.
- When you're fully booked. If you're turning people away, your prices are too low.
Avoid:
- Right before Christmas. Let people enjoy the season.
- During a quiet patch. Looks desperate even if it isn't.
How to communicate it
Keep it simple. No essay required.
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. No apology. No lengthy explanation about the cost of living. 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. 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. One exception becomes ten.
If someone does leave
It happens. It's usually fewer than you expect. When it does:
- Let them go gracefully. "I understand. We'd love to see you again if circumstances change."
- Don't chase. Discounting to keep them defeats the point.
- Fill their slot. Probably 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.
The mindset shift
Your prices reflect the value you provide. Good stylists, quality products, a pleasant environment, professional service—that's worth paying for.
Undercharging doesn't make you generous. It makes you unsustainable. It means you can't pay your team properly, invest in training, or keep the salon looking its best.
Charging appropriately is how you build something that lasts.