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Tuesday, December 6, 2011

Make Your Clients VIP's

    
     Tonight’s tip is about starting a VIP program in your salon for your clients. I know many of you are afraid to raise prices in this new economy. Oh they will cut back or quit coming altogether is the usual response. Let me ask you. What hasn’t gone up this year? Food? Clothing? Gas? Electric? Your supplies? Your rent? I can tell you what probably has not gone up. Your prices. I know raising prices is a very touchy subject among nail professionals. Quit feeling sorry for your clients, worrying about their money and start worrying about yours! I can tell you for a fact that your product prices have gone up, the cost of educating yourself has gone up, airfare to classes and shows has gone up. And you are still trying to do it all on last years prices. I know it is a little scary to raise prices but it is more scary not to. Your profit margins are shrinking and the probability of staying in business decreases with an unhealthy budget. So I have a solution you might want to try. Post a note stating as of the first of the year there will be a slight increase in prices to be able to continue to bring the quality services, treatments and products they love. Then offer your guests a VIP card. Make them up on your computer or purchase them from Office Max or Vista print. Add their name and the expiration date on the card. You can price them wherever you think your market will sustain. I started at $25.00 for the year, which  gets them 10% off services. $35.00 gets them 10 % off services and retail and $50.00 gets them 10% off services, retail and gift cards. You have to do the math and figure out the savings for your clients based on your prices. The thing is, clients will begin to stretch between visits, cutback on retail and maybe not think of you for their gift ideas. But when they purchase the VIP card they feel they have to get their moneys worth. I found my clients spent just as much if not more because of the savings they got.
     Not all clients will purchase the VIP card so they will be paying the new increase in your prices. Plus all the new clients come in at the new rate. Winning!  Even if you lose a couple of clients the new rate will quickly make up for the lost revenue. Besides the fact that it opens a new spot on your book for a new client at your new prices. I know many of you work hard at keeping up and improving your skills, why are you selling yourself short? Think about selling 50 cards @ $25.00, that's $1250 to start the new year !!Every healthy business raises their prices in order to maintain a healthy bottom line. It’s time you do too. And that’s the tip of the week.

2 comments:

  1. I'm not understanding your VIP program, could you explain a little further?! I believe my prices are perfect for now. Just started independent 9 months ago, so not just yet will i be raising mine. I do have a loyalty program in place. Visit 5 times and the 6 time is half off one srvice. Keeps them in my chair, and still charging the same for everyone. Also, have 20% off new clients on their first visit. Love the blog :)

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  2. Offer your clients the opportunity to purchase VIP cards to your salon. It is sort of a reward program, the more they spend the more they save :)The VIP card is like a discount card for services, or retail and even gift cards if you choose. Just make sure to keep a running log, it can get confusing. Each time they visit they get whatever percentage off you have decided for your card. However when you up your prices, this is a way for regular clients to hedge off the increase.You are not losing because they are still paying the current price, plus you will find they aren't as tight fisted with their $$.

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