How to Tell Customers You’re Raising Prices

Raising your fees is a normal part of running a healthy, sustainable business. While raising your rates may cost you a client or two, not raising them can cost you more. If you feel anxious about raising your rates, you’re not alone. Everybody is a little scared they will lose customers. The good news is that you can control the process and put your salon in the best position to avoid negative fallout. In this article, we will tell you when to raise your rates and the steps you can take to raise them like a confident professional. Plus, we’ll give you tips on what to say and how to react if a customer objects to paying more. It’s all about developing a plan and communicating it to your customers. So, if you want to know how to tell your customers you’re raising prices, keep reading.

Estimated reading time: 9 minutes

When is the Right Time to Raise Your Rates

When a salon owner is thinking about raising rates, they often wonder, “Is this the right time?” Timing is important because raising prices creates risk. The risk, of course, is that customers will not accept a price increase and find another salon. No one likes price increases, and no one likes to lose customers. Therefore, raising prices should not be an arbitrary decision, but one based on facts and numbers. Here are some things to consider when deciding whether to raise your rates.

Customer Demand

Demand tells you when to raise your rates. According to an article published by American Salon, “Books that are 80-90 percent full for 3 consecutive weeks or more are a solid indicator you should be charging more.” In that situation, demand for your services is high, and you can afford to lose a client or two. This will free up time in your schedule for new, higher-paying customers.  

New Services

If you’ve added complimentary new services to elevate your customer experience, like hot or cold towel face treatments or hand and scalp massages, you’re adding value. Added value and a premium customer experience are reasons to raise your prices.

New Certifications, Advanced Techniques and Awards

If you’ve gained new certifications or learned advanced techniques, you are raising your game and can reasonably charge more for your expert services. If you’ve won awards for your nail or hair designs, you will probably get more customers, triggering a rate increase.

Inflation and Business Cost Increases

The prices you pay your suppliers rarely go down. And you can absorb inflation only so long. At some point you’ll need to pass it along to your customers. The question is, how often should I raise prices to cover inflation? We found an answer in an article published by Vagaro, a software provider to the salon industry. “Typically, salon owners and stylists should raise their prices anywhere between 5%-10% every year or year and a half.” Regularly raising prices helps you offset inflation and maintain profitability.

Don’t Be Nervous to Raise Your Rates

You may be nervous about raising your rates, but if you have good reason to, don’t be. That’s easy to say, but harder to do. We’ve all been there. You may worry that a fee increase notice will lead to pushback or cancellations. You may think that customers will cut back on extras or buy cheaper products elsewhere. And of course, you may be concerned that some customers will come less often, stretching the period between appointments by another week or two.

The nervousness over rising prices is more than about money. As a business owner, you can get emotionally attached to your salon. Accounting Firm, Albin, Randall & Benett, recently published an article that stated, “For many business owners, the business is more than a means by which to achieve financial security. It has a deeper meaning. It’s a point of pride. And that means that business owners often act irrationally when it comes to risky changes like price hikes. Because when you truly care about something, you will do anything you can to protect it, even if what you’re doing isn’t really protecting it at all.”

Avoiding the “price conversation” might seem easy, but in the long run, it can create bigger problems. If your pricing no longer reflects your time, costs, expertise, or service quality, resentment can build on your side, and inconsistency can show up in the customer experience.

Instead of feeling nervous or fearful, think of an increase as a way to protect your business. Raising prices lets you provide the high standard of design and service your customers expect. You are not asking for permission to run a sustainable operation. You are communicating a business decision professionally, enabling you to continue operating at your standards for years to come.

Start With a Plan

Once you’ve decided to raise your rates, develop a plan. A plan helps you clarify your rationale for new pricing, define the timing, the customers affected, and the value you are preserving or improving. It’s a roadmap to tell customers you’re raising prices. This preparation keeps your message confident and consistent.

Useful questions to answer before communicating anything include:

The best messages are easy to scan but not abrupt. Short paragraphs, plain language, and a calm tone make the update feel manageable.

How much notice should you give customers?

Give customers enough notice to understand the change and ask questions before the new fee takes effect. A notice sent with enough lead time feels more professional and gives customers time to process the update. We recommend three months’ notice, so if you want to raise your prices at the beginning of next year, start notifying customers in October.

Choose the Right Format and Timetable

We recommend using a layered communication approach. Notifying customers in person, by email, and with a text reminder lets you send your message in the ways your customers prefer.

What Not to Say When Talking to Your Customers

Some customers may question the increase, and that does not mean you communicated poorly. People naturally react when costs change. Your job is to listen, clarify, and stay grounded in the value of your work.

Don’t apologize. Apologizing for raising your rates shows a lack of confidence and that you’re unsure of your value. Be empathetic to their concerns but confidently sell your value.

Additionally, avoid blaming your rate increase on outside forces. According to an article published on LinkedIn, don’t say things like “Due to rising inflation, I have no choice but to raise our prices” or “The cost of rent and products has increased, forcing me to adjust my pricing.” These statements suggest your business has no role in managing costs or providing solutions. Customers expect you to own your pricing decisions rather than simply passing the burden on to them.

A better approach is to say, “We are updating our pricing structure to continue delivering the highest quality service you deserve. This adjustment allows us to maintain the best materials, invest in innovation, and support our team in providing excellent service.”

Remember, your relationship with a customer is based on the fee you charge relative to the value of the service you provide. By focusing on your value and the customer experience you deliver, most customers will justify a reasonable price increase.

Conclusion to How to Tell Customers You’re Raising Prices

How you tell customers you’re raising prices is critical to making them feel comfortable and relate the price rise to the value they receive. If it’s time to raise your rates, make a communications plan. When you prepare your reasoning, give proper notice, and communicate with confidence, customers are more likely to see the change as a normal part of doing business. Clear communication protects both the relationship and the business. The most effective approach is simple: be direct, be respectful, and make the next step obvious. You do not need to apologize for building a sustainable business. If you need help with planning a rate increase for your salon, talk to the management team at bello Salon Suites. We have helped salon owners navigate price increases that boost profitability while preserving the important relationships they have with clients. It’s just one way we support our salons, every day.

Now that you know how to tell customers you’re raising prices, you may want other ways to boost your salon’s profitability. To learn more, please read our article, “Raising Salon Profitability in Just Four Useful Steps.”

bello Salon Suites is a collection of 108 custom, private salon suites for rent to hairstylists, barbers, and beauty professionals in Sacramento, California. Privately owned and locally based, our facility features five stylish lounges and an outside garden for a truly zen-like experience. Additionally, we offer more support, resources, and amenities than any other salon suite company in town, including ample free parking just steps from our front door. Take a tour today and see for yourself. For income potential, perks, and value, nothing compares to bello.