Dynamic Pricing Debunked
What is dynamic pricing & how can you use it to your advantage?
With so many great salons out there, it can be a challenge to set yourself apart from the competition and grow your client base – especially if you are a newbie to the salon game. More customers equals more money in your pocket so finding ways to increase your customer base and grow your revenue in the process is crucial.
Dynamic pricing is a strategy that’s gained traction in the past few years across a range of different businesses. Let’s explore what dynamic pricing is and how it can help you in the salon world.
So, what even is dynamic pricing?
If you’ve heard dynamic pricing get thrown around by business bigwigs but have no idea what it actually is, you’re not alone.
In short, dynamic pricing is a strategy that businesses use to adjust their pricing to reflect real-time changes like supply and demand, seasonality and other various factors. Unlike your run-of-the-mill static pricing – which maintains one price permanently – dynamic pricing allows you to stay ahead of the game and price your salon services appropriately based on changing factors.
How does dynamic pricing even work in a salon?
We know what you’re thinking, how could changing the prices on our customers possibly mean more business? And it’s simple, really, you can optimise your salon prices based on factors such as peak hours, popular services and seasonal trends. Dynamic pricing works to set prices that guarantee both maximum revenue and keep your customers satisfied.
How can my business utilise dynamic pricing?
This is one of the most straightforward ways to begin implementing dynamic pricing. If there are days or times that are generally busier, consider slightly increasing the prices around those times. Not only does this help you to make more revenue but also gets customers to consider off-peak appointments so you can better manage your day without huge rush periods.
If you want to capitalise on seasonal trends, dynamic pricing should be your go-to. If it’s a holiday period or a special time of year, consider offering promos and discounts to get more customers through the door. You may also want to add promos for the slow seasons too to boost business during winter months.
Customer loyalty programs
Dynamic pricing isn’t just about upping the prices of your services, it can also be used to reward your loyal customers. Implementing a customer loyalty program is a sure fire way to keep customers coming back. Whether it’s discounts, promos or products as the reward everyone loves a customer rewards program!
Real time adjustments
This one is a key feature of dynamic pricing, the ability to change prices based on customer behaviour. If suddenly you see an influx of customers for a particular service that’s blown up on social media, you may want to consider slightly increasing the price to reflect the high demand.
Who doesn’t love a bundle deal? If there’s a surefire way to help you increase revenue, bundling services at a discounted rate is the perfect thing. This will encourage your clients to try multiple different services at once increasing the amount they would spend normally (even with the discount), you can play around with different bundles and dynamic pricing options to see which ones stick!
The importance of dynamic pricing
At Simple Salon, we know how important it is to stay ahead of the curve and dynamic pricing allows you to do just that. Think more bookings, more clients and more cash in your pocket – what’s not to love?