Why pet grooming business owners should increase their prices before the recession hits

Hello hello and welcome to Greedy Bitch, a podcast where groomers stop apologizing for charging their worth.  I’m your host River Lee, founder of the Savvy Groomer.

Today’s episode is sponsored by the Price Increase Masterclass, a 6-module masterclass where we teach you all about increasing your prices.

Let’s talk about today's topic:

Why Pet Grooming Business Owners Should Increase Prices Before the Recession Hits

In today's episode, we will be discussing the importance of increasing prices before a recession hits. As a pet grooming business owner, it's important to be proactive and prepared for economic downturns. We will explore the reasons why it's crucial to increase prices before a recession, as well as some strategies for doing so effectively.

The consequences of not increasing prices before a recession

Before we dive into the reasons why pet grooming business owners should increase prices before a recession, let's first discuss the consequences of not doing so. During a recession, consumers may be more hesitant to spend money on non-essential items such as pet grooming. This can lead to a decrease in demand for services and a corresponding decrease in revenue for pet grooming business owners.

If demand for services decreases and revenue decreases, it can be difficult for pet grooming business owners to maintain the same level of operation. This may result in the need to cut costs, such as reducing the number of employees or lowering the quality of products and services. These cost-cutting measures can ultimately have a negative impact on the overall customer experience and reputation of the business.

In addition to the potential loss of revenue and negative impact on the customer experience, not increasing prices before a recession can also lead to financial strain for pet grooming business owners. If expenses remain the same or increase while revenue decreases, it can be difficult to maintain profitability and pay bills on time. This financial strain can be especially difficult for small business owners who may not have the same financial resources as larger businesses.

Why pet grooming business owners should increase prices before a recession

Now that we've discussed the consequences of not increasing prices before a recession, let's talk about the reasons why it's important for pet grooming business owners to do so.

One of the main reasons is to ensure the sustainability of the business. By increasing prices beforehand, pet grooming business owners can buffer against potential losses and ensure that their business can weather the storm of a recession. This can help to prevent the need for drastic cost-cutting measures and allow the business to continue operating at a high level.

Another reason to increase prices before a recession is to take advantage of the current economic climate. During times of economic growth, consumers may be more willing to pay higher prices for services. By increasing prices now, pet grooming business owners can capitalize on this willingness to spend and potentially increase their profits.

It's also important to consider the long-term impact of not increasing prices before a recession. If prices are not increased during times of economic growth, it can be difficult to make up for lost revenue during a recession. This can lead to financial strain and potentially even the failure of the business. By increasing prices beforehand, pet grooming business owners can set themselves up for success in the long term and be better prepared for future economic downturns.

Strategies for increasing prices effectively

Now that we've discussed the reasons why it's important for pet grooming business owners to increase prices before a recession, let's talk about some strategies for doing so effectively.

One strategy is to introduce new services or packages at higher price points. For example, a pet grooming business could offer a simplified deluxe grooming package that includes additional services built in such as teeth brushing or nail grinding. By offering new, premium services at higher price points, pet grooming business owners can increase their overall revenue without alienating their existing customers.

Another strategy is to implement moderate, incremental price increases over time. This allows pet grooming business owners to gradually adjust to the new price points and gives customers time to adjust as well. 

Communicating price increases to customers

Effective communication is key when it comes to increasing prices. It's important for pet grooming business owners to be transparent and explain the reasoning behind the price increase to customers. This can help to build trust and understanding, and may make customers more willing to accept the changes.

There are several ways that pet grooming business owners can communicate price increases to customers. One method is through direct communication, such as by sending out emails or letters to existing customers or posting announcements on social media or the business website. It's important to provide clear, concise information about the price increase and the reasons behind it.

Another method is to provide value to customers in exchange for the price increase. This could include offering exclusivity through a membership.  By providing value and exclusivity to customers, pet grooming business owners can help to offset the impact of the price increase and make it more palatable to customers.

If you’re interested in learning about memberships in the grooming industry check out our free workshop, “Does your grooming business need a membership model?”
www.savvygroomer.com/mw

It's also important to consider the timing of the price increase. Pet grooming business owners may want to consider increasing prices during slower periods, as this may be less disruptive to business operations. It's also important to give customers advance notice of the price increase so that they have time to prepare.  At the Savvy Groomer we suggest having yearly increases in march or september.

Potential objections and how to address them

It's natural for customers to have objections or concerns when it comes to price increases. Pet grooming business owners should be prepared to address these objections and reassure customers that the price increase is necessary and justified.

One common objection is that the price increase is too high. In this case, pet grooming business owners can explain the reasons behind the increase and highlight the value that customers will receive in exchange for the higher price. They can also point out any additional services or perks that are being offered as part of the price increase.

Another objection may be that the price increase is not fair or justified. In this case, pet grooming business owners can provide examples of how the price increase is necessary in order to maintain the quality of products and services and ensure the sustainability of the business. They can also emphasize the importance of investing in their business in order to continue providing the best possible service to customers.

Thank you for listening to this podcast on why pet grooming business owners should increase prices before a recession hits. 

If you are interested in learning more about the Price Increase Masterclass, be sure to check out savvygroomer.com/pimc. This is a 6-module masterclass where we teach you how to formulate and implement your price increase so you can finally make money and grow your business.

Thank you all so much for listening to this podcast, Why Pet Grooming Business Owners Should Increase Prices Before the Recession Hits. Be sure to visit me at SavvyGroomer.com to see my current opportunities to work with me in growing your pet grooming business plus more free resources for you to learn. See you in our community on Facebook - Savvy Pet Professionals! As always, Happy Grooming