Disclaimer: BeautyKiln gives general information, not legal, tax or financial advice. Talk to a qualified professional before making big decisions.

6.2 - When and How to Raise Your Prices

You know you need to raise your prices. You've been meaning to do it for months - maybe years. But you keep putting it off because you don't want to lose clients, you don't know how much to increase, and you don't know what to say. This guide gives you the when, the how much, the exact words to use, and the answers to every objection your brain (or your clients) will throw at you.

Quick rule of thumb: if you haven't raised your prices in the last 12 months, you've given yourself a pay cut. Inflation doesn't care about your feelings.

When to raise your prices

Tip for new starters: Raise your prices after your first 3-6 months, not after your first year. Most new beauty workers launch too cheap to get clients in the door. Once you have regular bookings, correct the price before you get stuck at a rate you resent.

At least annually

This isn't negotiable. Costs go up every year - products, rent, insurance, NI contributions, energy bills. If your prices stay the same while your costs increase, your profit shrinks. That's a pay cut.

Think of it this way: CPI inflation in the UK has averaged 3-6% per year recently. If you don't increase by at least that, you're earning less in real terms than you were last year.

When your costs increase

Don't wait for the annual review. If your chair rent goes up by £50/month, that's an extra £600/year you need to find. If your product supplier increases prices by 15%, your margins just got squeezed. Pass costs on promptly - don't absorb them and hope for the best.

When you upskill

Completed an advanced colour course? Qualified in a new aesthetic treatment? Added microblading, dermaplaning, or chemical peels to your menu? New skills = higher value = higher prices. You invested time and money in training. Your prices should reflect your expanded capability.

When demand exceeds capacity

If your diary is consistently 90-100% full and you're turning clients away or have a waiting list, the market is telling you something: your prices are too low. Raise them until demand matches your available slots. This isn't greed - it's supply and demand. It's how every business works.

When you haven't raised in 2+ years

If it's been two years or more since your last price increase, you're significantly behind. Two years of 4% inflation means you need a minimum 8% increase just to stand still. If your costs have risen more than inflation (they usually have), you need more than that.

Don't try to catch up in one massive jump. If you need a 15-20% increase, consider doing it in two stages: 10% now, 5-10% in six months.

How much to increase

The standard range: 5-10% annually

This is the industry norm and what clients generally accept without question. On a £40 service, that's £2-4 - most clients won't even notice.

Rounding: Round to clean numbers. Clients prefer £37 over £36.75, and £50 over £49.50. Clean prices look more professional and are easier for everyone.

When to go higher than 10%

• You've been significantly underpriced for years and need to catch up
• You've completed major training and your service quality has jumped
• You're repositioning your business (moving from budget to mid-range, or mid-range to premium)
• Your market can clearly support it (other practitioners with similar skills and experience charge 20-30% more)

If you need a large increase, consider phasing it: implement half now, the rest in 3-6 months.

How to tell clients

The golden rules

1. In writing. Not verbally at the end of an appointment. Written communication gives the client time to process it privately.
2. With notice. 2-4 weeks minimum. Ideally, tell clients at their current appointment that prices will change from a specific date, and follow up with a written message.
3. Matter-of-fact tone. This is a business decision, not an apology. You're informing, not asking permission.
4. No long explanations. You don't owe anyone a breakdown of your costs. A brief reason is fine. A paragraph-long justification undermines your confidence.
5. No apologies. "I'm sorry, but..." makes you sound like you're doing something wrong. You're not.

Template: WhatsApp/text message

Hi [name], just letting you know that my prices will be updating from [date]. Your [usual service] will be [new price]. This is my annual price review to reflect current costs. I really appreciate your loyalty and look forward to seeing you at your next appointment. [Your name]

Template: email

Subject: Price update from [date]

Hi [name],

I'm writing to let you know that my prices will be updating from [date]. You can find the new price list attached / below.

This is part of my annual review to ensure I can continue to provide the quality service you expect, with the best products and ongoing training.

Thank you for your continued support. If you'd like to book ahead at current prices, appointments are available until [last date at old prices].

Best wishes, [Your name]

Template: social media

Quick update - my prices will be updating from [date]. This is my annual review to keep things in line with current costs. Updated price list is [here / in highlights / on my booking page]. Thank you for all your support - I love what I do and I'm always working to give you the best service possible.

Template: booking system notification

If your booking system sends confirmations, update your price list and let the system do the work. Most clients will see the new price when they next book and accept it without comment.

Should you grandfather existing clients?

No. Here's why:

It creates a two-tier system. Some clients pay £35, others pay £40 for the same service. If the £40 client finds out the person before them paid £35, they feel ripped off. If the £35 client finds out they're getting a special deal, they expect it forever - and they'll tell their friends.

It breeds resentment. You'll grow to resent the grandfathered clients because they're paying less than your new rate. They're taking up diary space that could go to a full-price client. You'll start giving them less attention, less product, less time - which is unfair to them and unprofessional.

It's financially unsustainable. If you grandfather your first 50 clients, within 2-3 years of annual increases, they're paying 15-25% less than new clients. Your average revenue per client is being dragged down by people who've been with you the longest - which is the opposite of how loyalty should work.

The exception: If you have a genuine hardship case - an elderly client on a pension who you've seen for years - you might choose to hold their price. That's your call. But make it a rare, personal decision - not a blanket policy.

Best timing for price increases

January

New year, fresh start. Clients expect changes in January. Costs often rise at the start of the year. It feels natural.

April

New tax year (6 April). NI thresholds change. Minimum wage increases. If your costs have gone up with the new tax year, April is a logical time to adjust.

September

After the summer lull. Clients return from holidays and book autumn/winter appointments. If summer was slow and you need to boost revenue, September is a good reset point.

Avoid:

• December - clients are spending on Christmas and won't appreciate a price increase on top.
• Mid-month - always start new prices on the 1st of a month. It's cleaner and easier to track.

What happens when you raise prices

You'll lose some clients

Typically 5-10% - and that's only if the increase is significant. Most practitioners report losing fewer than 5%.

The clients you lose are your worst clients

This sounds harsh, but it's consistently true. The clients who leave over a £3-5 increase are:

• The ones who always haggle
• The ones who cancel or no-show most often
• The ones who take the most time and energy
• The ones who'll leave you for someone else £5 cheaper next month anyway

They're not loyal to you. They're loyal to your price. When the price changes, they move on. Let them.

The clients who stay are worth more

Not just financially - though they literally are. They're also:

• More respectful of your time
• More likely to rebook regularly
• More likely to try new services
• More likely to refer friends
• Less likely to no-show

You end up with a better client base, higher revenue, and less stress. Every single practitioner who raises their prices and sticks to it reports the same thing: "I wish I'd done it sooner."

You might get push-back from 1-2 people

Someone will say "that's a lot" or "I'll have to think about it." Most of them book anyway. The ones who don't were never your ideal client. Respond calmly, don't negotiate, don't backtrack. (See the scripts in the Pricing Psychology guide.)

Your diary might have a gap for a week

A small, temporary gap as a few price-sensitive clients drop off. Within 2-4 weeks, new clients fill the space - and they're paying your new rate. The gap is normal. It's not a sign you've made a mistake. It's a transition.

Common fears (and the reality)

After the increase: what to do

1. Update everywhere. Price list, social media, booking system, website, Google Business Profile, leaflets, business cards. Outdated prices anywhere create confusion and awkward conversations.
2. Don't mention the old prices. Once the new prices are live, the old prices don't exist. Don't compare, don't reference, don't justify.
3. Hold the line. If someone asks for the old price, say no. Politely, but firmly. "My current prices are [X]. Would you like to book?"
4. Track the impact. Note how many clients you lose (if any), how quickly gaps fill, and what your monthly revenue looks like after 1-2 months. You'll almost certainly be better off.
5. Set a reminder for next year. Put it in your calendar now: "Review and increase prices." Annual increases prevent the need for a big scary jump.

What to do next

1. Check when you last raised your prices. If it's been more than 12 months, you're overdue.
2. Calculate your increase: 5-10% for an annual adjustment, more if you're catching up.
3. Pick a date: 1st of next month, or next January/April.
4. Draft your message using the templates above.
5. Update your price list and booking system.
6. Send the message. Stop overthinking it. Press send.

Who to Contact

• HMRC Self Assessment helpline: 0300 200 3310 (Free) - if higher income changes your tax position: gov.uk/self-employed
• MoneyHelper: 0800 138 7777 (Free) - financial planning and budgeting guidance
• NHBF (National Hair & Beauty Federation): nhbf.co.uk - Annual pricing survey and benchmarking data (Paid - membership required)
• Your accountant: To review whether your new prices cover your costs (Paid)
• Citizens Advice: 0800 144 8848 (Free) - self-employment rights and obligations

Sources

• ONS Consumer Price Index (CPI) inflation data
• NHBF annual industry survey
• Bank of England inflation calculator
• Small business pricing research (Federation of Small Businesses)

Related Guides

• Pricing Psychology: Stop Undercharging
• Regional Pricing Benchmarks
• Tax-Integrated Pricing: What Margin Do You Need?
• Complete Pricing Guide
• Insurance for Self-Employed Beauty Workers

What to do next

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