So my hair salons charge $14 for an adult haircut, and $12 for a child or senior. We have kept these prices for 3 years, which is really incredible in my opinion.
Here is our competitors:
A - $17.95
B - $16.95
C - $16.95
D - $16.50
Now, I believe that we offer a way superior product to any of these guys. We are more professional and we are more convenient. We are cleaner and more upscale.
Meanwhile, I am really starting to feel the pinch on overhead, because EVERYTHING has gone up in 3 years. My labor costs, which are almost half of my overhead, have gone up 11 percent the last 2 years. Rents, utilities, and supplies have gone up. But the franchisor always advises against raising prices. Now from their vantage point, I can see it why:. They are getting a single digit percent of your sales, so they would just as soon you never rock the boat. But I don't want to wait so long that I am seriously behind and then i have to go up even more!
If I increase my prices, it will go from $14/12 to $15/13. What do you guys think? Will this have any material affect on my business?
Here is our competitors:
A - $17.95
B - $16.95
C - $16.95
D - $16.50
Now, I believe that we offer a way superior product to any of these guys. We are more professional and we are more convenient. We are cleaner and more upscale.
Meanwhile, I am really starting to feel the pinch on overhead, because EVERYTHING has gone up in 3 years. My labor costs, which are almost half of my overhead, have gone up 11 percent the last 2 years. Rents, utilities, and supplies have gone up. But the franchisor always advises against raising prices. Now from their vantage point, I can see it why:. They are getting a single digit percent of your sales, so they would just as soon you never rock the boat. But I don't want to wait so long that I am seriously behind and then i have to go up even more!
If I increase my prices, it will go from $14/12 to $15/13. What do you guys think? Will this have any material affect on my business?
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