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How to Increase Your Prices For Your Tattoo Services

Posted on: June 16th, 2014 by Hayley James No Comments

Setting your pricing is one task many small business owners find difficult to do. It can be a bit of a balancing act, you know you need to maintain your profit margins and your monthly takings needs to be sufficient for  you to meet your financial obligations. However, when your costs keep  increasing and you find yourself ‘absorbing’ these costs to the detriment  of paying yourself a wage then the time for increasing your pricing is long  over-due. 

Most consumers know that a business must occasionally raise prices  because their costs of doing business has increased, This could be due to  rises in legal and statutory costs, supplies, payroll and utility charges (to name a few). It may help to remember that consumers are most likely experiencing some the same increases in their own house-hold bills too;  so many loyal customers will understand your reasons for your need to  increase your prices. 

The reality is, that however you justify a price increase, it has the  potential to negatively impact sales as price-conscious customers are left  no option but to seek out lower cost alternatives.

So how do you increase your prices without losing your customers? Apply these five steps when preparing your strategy for communicating a price increase with your customers.

1. Inform your customers well in advance.

Provide your customers with enough notice to allow them to make adjustments in their scheduling of appointments and budgets. If you are currently consulting them on a custom design piece make sure you clearly communicate if this will impact any on-going work.

2. Inform customers of the benefits to them.

The key to getting customers on-side about you raising your prices is to emphasize that such an increase will ensure the 

quality of your services.You can emphasize that your price increase has been carefully thought through and it is only being taken to ensure continued quality in maintaining access to the highest quality of products and equipment supplies. The benefit to your customer is obvious once they understand you do not wish to start using inferior products. 

3. ‘Bundle’ your prices to show added value.

Another way to increase your prices is to re-vamp and repackage your services in a way that helps your customers see an increased value in your services alongside an increase in price. This could avoid customer perception of there ever being a price increase.

4. Are you absorbing any costs?

If the percentage of your price increase is smaller than your increased costs, your customers may understand and even appreciate that you are not passing on all of the cost increases to them.

5. Stagger your price increases over time.

Share with your customer the steps you have taken to avoid a price increase. This can include ways you've already cut costs or how the price increase will be staggered over time to help customers with the transition.

If you forecast and plan to raise your prices and factor in the increasing costs of doing business you expect, you will maintain your cash flow, continue to grow your tattoo business by increasing your profits too.