The words "price increase" (or any combination there of) are definitely words not loved by many. Going into the new year, you'll probably notice many businesses increasing their prices so I wanted to take the time to explain why a price increase is both inevitable and necessary for your favorite small businesses.
Reason #1: PRICE INCREASES HELP TAKE THE BUSINESS TO THE NEXT LEVEL.
A price increase enables the business to provide more: more luxury/comfort, high quality products/supplies, additional payment options and other business expenses that allow the business to run smoother and more efficiently. I can tell you that my business is completely different than it was over four years ago.
Let's check out the evolution of my lash studio, as an example:
I had a massage table with no extra padding. Carpet for flooring. Each price increase allowed me to gradually increase the experience for my clients. As the business grew, I was able to broaden my knowledge/exposure to different brands and try out new products.
Reason #2: AS THE BUSINESS GROWS, SO DO OPERATING EXPENSES
Even the most efficient business owner knows that there is a cap to every level of business. You could be running the tightest ship but in order to provide more, you do take on more expenses. For example, to have the convenience of a booking app so that clients can book their appointments at any time of the day, you now take on the responsibility of a monthly payment for a booking system. To be more discoverable to new clients, creating a website with a custom domain that matches your business' brand identity, you take on another monthly/yearly subscription. At the start of my business, I only accepted cash and etransfer as payments and since then, I've acquired a Square Terminal for payment processing by debit, credit, Apple Pay & Google Pay and obviously the processing fees that come with it. Everything has a monthly or yearly cost: business registration & insurance, editing apps, cellphone, wifi, etc. All things that are necessary to keep the business running.
Reason #3: INFLATION
The cost of everything has gone up. As a responsible business owner, I know and understand all the cost of each type of service that I offer. All of the supplies required for each type of service has gone up quite a bit, not to mention the cost of shipping for those supplies which has increased significantly.
When you support a small business by booking a service, referring friends and family or by purchasing retail items, that business does a happy dance. Your payments go directly to that individual and their family. It doesn't need to trickle down any sort of corporate ladder where everyone takes a cut. You're supporting someone's dream and livelihood.
Looking back, I cringe a bit at my beginnings but am thankful that my clients supported me every step of the way. I wouldn't have made it this far without your continuous support and am looking forward to all the new things for 2023, especially mentoring and educating the new generation of lash artists and other beauty business owners.
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