I run a small dog grooming business and I need to raise my prices. Costs have gone up, and I'm barely breaking even. But I'm terrified of losing my regulars. Some have been with me for years. How do I do this without them all jumping ship? Any advice or stories of how it went for you?
Pricing
Raising prices without losing loyal clients
Just tell them straight. People respect honesty. If they leave over a few bucks, they weren't that lyal anyway.
That's easy to say, but grooming is competitive. I'd give them a heads up a month in advance, maybe offer a small perk like a free nail trim to soften the blow. Also, if you can, grandfather existing clients for a couple months.
I raised my prices 15% last year (I do alterations) and only lost two clients. One of them was a nightmare anyway. The key was explaining it in terms of cost increases. I literally said 'the cost of supplies has gone up, so I have to adjust my rates.' Most people get it.
Thanks, all. I like the idea of a heads-up. I'm thinking of a letter or text. But I'm worried about the ones who are on fixed incomes. Some of my older clients might really feel it.
Do you offer any kind of loyalty discount already? If not, maybe introduce one at the same time. Like a punch card or a referral bonus. That way, even with the increase, they feel like theyre getting something back.
Honestly, if they can't afford it, they can't afford it. You're running a business, not a charity. Don't let guilt eat you.
that's a bit harsh, @feralcatfan. Small businesses thrive on relationships. A little compassion goes a long way. That said, you can't set yourself on fire to keep others warm. Maybe have a sliding scale for those who really need it? But don't overcomplicate.
Another thing: communicate the value. Remind them what they get for the price – the quality products, the care, etc. I also raised my prices in small increments rather thann one big jump. Gave me less anxiety.
Small increments sounds smart. Maybe 5% every few months? But I worry about the paperwork and notifying everyone each time. Might be more hassle.
I've done the gradual thing. It's less noticeable. But make sure you're not undervaluing yourself. If you're barely breakig even, you might need a bigger jump. Have you calculated how much you need to increase to be profitable?
also, don't apologize in your notice. Just state the new prices and the date they take effect. Being wishy-washy invites pushback.