4 Signs It's Time To Raise Your Prices
IT'S TIME TO STOP LOSING MONEY IN YOUR BEAUTY BUSINESS.
One of the questions students in Pretty Rich Bosses often ask me is how to know when it's time to increase your prices.
I understand that it can be scary to consider! You have this roster of clients who are used to your current prices, but you've got this itch that it's time to start raising your prices.
How are they going to react? Are you going to be able to keep your clients? Are they going to leave because you're charging more?
How do you know when the perfect time is?
Today, we’ll talk about some signs that it's time to raise your prices. We'll cover how to handle objections from your clients in a few weeks!
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1. Demand Is Too High To Keep Up With
This is the most obvious sign that it's time for you to charge more in your beauty business.
It's extremely common for beauty entrepreneurs, especially when they're first starting to grow in their businesses, to want to take on as many clients as possible for the lowest price. You think, well, if I keep my prices low, I'll get more clients, and if I get more clients, I'll make more money.
Unfortunately, you are not Wonder Women, and your time and energy are limited! How can you grow a beauty business when you're busy running yourself into the ground?
If you can't keep up your growing demand and you're still not making the money you want to be making, then it's a definite sign that you're undercharging.
At this point, I recommend raising your prices, but it may also be a good idea to consider hiring another artist or an assistant to help!
Check out my Hiring 101 Webinar on March 1st for more advice on this.
2. Your Competitors' Prices Are Significantly Higher Than Yours
It's always good to do market research and see what your competitors are charging. If your competitors are charging significantly higher than you, it's time to raise your prices.
When your prices are that much lower than your competitors', people are going to doubt your services. They're going to wonder why exactly your prices are so low.
Is your work lower quality? Is your service not as good?
Ultimately, people want to pay the price for good work. So do an audit of your own business.
Are your prices reflecting your services?
Are they reflecting the experience of your customers?
If not, raise them!
3. You Test Out Higher Prices And Are Making Sales
Look, I know that increasing your prices can be scary. You might think that nobody will want to pay a higher amount for your product.
Here's the thing—you can always test out higher prices!
You can raise them by a small percentage to something that feels more in reach for your clients and see what happens.
If you're able to make sales, then you can stay at that price for a while before raising it again, or you can go ahead and bump it up to that full price you were thinking about!
If you're not able to make sales, maybe you need to reassess. Perhaps you were trying to raise your prices too much, and you need to raise it in smaller increments.
Maybe you need to change another part of your business to reflect this higher value.
We'll cover how to handle price objections in a few weeks, so sign up for my email list if you want to learn more about that!
4. The Cost Of Your Business Is Increasing
Running a business is expensive! One of the biggest issues I see among newer beauty entrepreneurs is that they're not paying enough attention to their overhead! Knowing your overhead is crucial because you don't want to be losing money.
Your business will become more expensive as time goes on. You're going to be investing more; you're going to be doing more procedures, spending more on equipment, hopefully buying better equipment, growing your team, etc. As your business grows, your price needs to reflect that growth!
If you're struggling to make enough money each month because your business keeps eating up a bigger and bigger chunk of your income, then it's time to raise your prices!
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Sheila Bella is a marketing expert and beauty business coach, as well as the President of The American Academy of Micropigmentation and founder of the Pretty Ambitious Summit.
She is considered a leader in the world of permanent cosmetics and beauty having built a 7 figure beauty business in 3 years.
In 2019, she pivoted to the online coaching industry and grew her online program, Pretty Rich Bosses, to 7 figures.
She works with beauty entrepreneurs every day, helping them create the businesses and lives of their dreams!
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