Should you increase makeup artistry prices

All makeup artists should evaluate their service prices on a periodic basis. However, some events can trigger this conversation in your head much earlier than you think is needed. Below are three major events that should trigger a price increase conversation for your business:

1. Rising Inflation and Expenses
   Canada experiences "steady-state inflation" every year, which usually hovers around the 2% mark. However, in 2022 the global economy encountered numerous unexpected events including the end of the COVID-19 pandemic and supply-chain disruptions. While the end of the pandemic translated into good news for makeup artist businesses (all the cancelled weddings and parties finally took place), all other factors combined have led to extraordinarily high inflation. You might have noticed business have started increasing their prices, ranging from big-box stores to the coffee shop down the street. Simply put, when a business’ costs rise while revenue remains the same, the business is making less profit. A business owner can choose to absorb rising costs or transfer some of these costs to customers in the form of increased prices. Due to inflation, businesses have had to increase prices to keep up with rising costs. Makeup artist businesses are no different.
   
   
2. Adding new makeup artists skills/services to your offering
   As a makeup artist, staying on top of new makeup trends in the industry is a must. Makeup trends are constantly evolving, and in order to remain valuable makeup artists need to adapt to these trends. You might choose to upskill through courses and workshops, or by branching into a different niche altogether, such as offering both hair and makeup, rather than just makeup. Or you might be a party makeup artist that is now offering bridal makeup services as well. All these additional skills should be priced at current market value, and you can take this opportunity to re-evaluate prices for all existing services as well.
   
   You can even consider evaluating your pricing model and including "add-ons" to base services. For example, if someone wants fake lash application, this can be priced as an add-on service. Or if you have started offering lash extensions, these can be sold as an “add-on” as well as a stand-alone service. 
   
   
3. Increased makeup artist experience
   Experience makes everyone better at their job including makeup artists. As your experience grows your prices should reflect your experience, years in the industry, and all the skills you have amassed over the years. If you find yourself waking up one day realizing you have been in the industry for 5 years without increasing prices, it's time to evaluate and increase prices.

How much to increase makeup artistry prices by?

If you have determined you’d like to increase prices, your next question might be “how much should I increase prices by”? We recommend three methods to determining price increases:

1. Evaluate competitor prices
   You can compare what you are charging for your makeup services to your peers and/or direct competitors. If you find that majority are charging more, you can increase prices to match your peers.
   
   
2. Match the inflation rate
   Most businesses increase their prices by a percentage equivalent to or slightly higher than the inflation rate in your country. If the inflation rate is 7%, you can choose to increase your prices by up to 10%.
   
   
3. Periodically increase prices by the same amounts
   Some businesses choose to increase their prices by a certain percentage after a certain amount of time has passed. This can be yearly or every two years. By following a consistent price increase strategy, you can reflect your improved experience in the increase prices.

How to increase makeup artistry prices without losing customers

You’ve decided you’re increasing prices. And how much to increase by. Now the biggest question is, what is the best way to increase prices and not lose loyal customers. No clients enjoy price increases, after all everyone is in the market for a good bargain. However, if communicated effectively and with grace, customers will accept the price increase and keep coming back to you. Below are 5 best practices for increasing prices.

1. Communicate price increases with clients clearly
   All price increases should be communicated to clients through email and/or a social media post. The increase should be clearly outlined. As an example, if your prices are going up by 5% overall, the 5% figure should be stated in the communication. The wording should leave no room for assumptions on the makeup client’s part. The communication should be friendly, open, and honest.
   
   
2. Explain the reasoning behind price increases
   While drafting your price increase communication to makeup clients, you should outline the reason behind your price increase, and also re-iterate the exceptional value and makeup services you provide to your clients. The communication should reflect confidence in your makeup artistry. 
   
   
3. Notify clients ahead of time of price increases
   Price increases should be communicated well ahead of time, with ample time provided to clients to understand the increase. Nobody likes price increase surprises the day they are booking a makeup service. This gives clients time to evaluate their makeup artist budget and consider other options.
   
   
4. Update new contracts with increased prices
   All future makeup client contracts should reflect your updated price list, once a price increase has been communicated. If you have prices listed on your website or social media, those should be updated as well. You can decide whether to honour old prices for pre-booked clients depending on your relationship with the client.
   
   
5. Allow clients to reach out with questions
   A price increase can often lead to questions and concerns from clients - encourage your clients to approach you with their questions. Client queries are the best time to develop a stronger relationship with them and remind them of your makeup skills and the value you provide. The more open you are about communication, the more your clients will appreciate your makeup artist business.

Know your worth!

Remember, price increases might seem daunting from a business perspective but ultimately, if your makeup services are excellent then you're supposed to be charging fair price for them! So go increase those prices confidently! The clients who value your services, will keep coming back to you. 

If you're a SpeedyMUA customer, reach out to your dedicated team to discuss if now is the right time for you to raise prices.