Podcast Summary: Spa Marketing Made Easy Podcast

Episode Title: SMME #460: Why and How to Raise Your Spa Prices in January (Without Losing Everyone)
Host: Daniela Woerner
Date: November 24, 2025

Main Theme & Episode Purpose

In this episode, Daniela Woerner addresses one of the most anxiety-inducing yet essential business practices for spa professionals: raising prices. The episode focuses on why it's critical to increase your rates annually—especially at the start of the year—and offers detailed, tactical advice on how to implement a price increase smoothly without losing (too many) clients. Daniela also covers how to communicate these changes, handle client pushback, and use this transition as an opportunity to strengthen your business and attract your ideal clientele.

Key Discussion Points & Insights

1. Why You Need to Raise Your Spa Prices Annually

• Cost Increases are Inevitable:
  • Vendors, insurance, rent, payroll, and cost of living all go up year over year.
  • “If you are not raising prices regularly… you’re actually going to be putting yourself out of business little by little.” [05:19]
• Declining Profit Margins:
  • Without regular increases, profit margins shrink while workload remains the same or increases—leading to burnout and financial instability.
• Business Sustainability:
  • “We are not running charities here. We are running businesses…” [09:16]
• Market Perception:
  • Not raising prices can attract only price-sensitive clients, which is not sustainable long-term.

2. Types of Price Increases

• Scenario 1: Standard Annual Increase
  • Prices are about right; increase by 2-5% yearly to keep up with inflation and rising costs.
  • Minimal client attrition expected.
• Scenario 2: Corrective Big Jump (“Rip the Band-Aid Off” Approach)
  • Long-overdue increases or markets where prices have been too low; make a substantial one-time increase to reach sustainability, then switch to annual smaller adjustments.
  • Example:
    • “We actually increased her lash prices by $100 … she lost three people.” [23:20]

3. Knowing Your Numbers

• Cost of Treatment & Profitability Tracker:
  • Break down consumables (e.g., dermaplane blade, cleanser, gloves) and payroll per service to determine true margins.
  • Goal: As close to 80% margin as possible.
• Decision-Making Based on Data:
  • “If I don’t know what your pricing is, I’m not going to be able to give you advice…” [27:40]

4. Communicating the Price Increase

• How to Announce the Change:
  • Proactive, transparent communication via email, social media, in-person for VIP/regular clients, updated signage and website.
  • Offer scripts, templates, and AI prompts for customized communication (available via DM on Instagram).
  • “Don’t bury the price increase at the end of an email. Do lead with it…” [56:35]
• Honoring Existing Bookings:
  • For clients who have already booked into the future, clarify how long previous pricing will be honored.

5. Handling Pushback (With Scripting Examples)

• General Pushback ("Too Expensive / Can't Afford It"):
  • “I completely understand how important prices are. Our prices reflect the quality of our products, the expertise of our team, and the results…” [38:00]
  • Offer alternatives: memberships, payment plans, discounted packages.
• Comparison to Cheaper Competitors:
  • “There’s lots of options in our area. I respect that you’re looking at different providers. This is what sets us apart: [advanced training, technology, etc.]” [42:50]
• Requests for Special Treatment / Grandfathering:
  • “Longtime clients like you are the backbone of our business. The pricing adjustments apply across the board…” [44:15]
  • Suggest memberships or added value as a loyalty reward for continued clients.
• Key Mindset:
  • “Your job is to be clear, professional, and kind. Your job is to communicate the value, but it’s not to talk someone into seeing your worth.” [47:20]

6. End-of-Year Promotions to “Beat the Price Increase”

• Create a Sense of Control & Urgency:
  • Announce January price increase early; offer clients opportunities to lock in current pricing.
• Examples:
  • Gift cards (in accordance with federal/state laws).
  • Pre-purchased packages at current rates.
  • Limited-time membership promotions with value-added incentives.
• Cash Flow Benefit:
  • “…helps boost your end-of-year revenue, which is great if you have a slow January.” [53:10]

7. Client Retention and New Acquisition

• Expect Some Attrition:
  • Annual client loss is often 20% even without a price increase; be vigilant in marketing to maintain and grow your numbers.
• Ideal Client Focus:
  • Not all clients will stay; focus your energy on attracting those who see and are willing to pay for your value.

8. Step-by-Step Action Plan

• 1. Run Your Numbers:
  • Use a profitability tracker to understand true costs.
• 2. Decide on New Pricing:
  • Commit to regular (2-5%) or a larger corrective increase as appropriate.
• 3. Design Your Communication Strategy:
  • Email, social, in-person, signage, website—all bases covered.
• 4. Plan Your Year-End Promotion:
  • Which options make the most sense for your business and clientele?
• 5. Practice Pushback Scripts:
  • Role-play with staff or in front of the mirror.

Notable Quotes & Memorable Moments

• On the necessity of price increases:

  • “If you’re not raising prices regularly, you’re actually going to be putting yourself out of business little by little.” [05:19]

• Regarding losing some clients:

  • “You will lose people when you raise your prices. That is a part of doing business. But… you’re creating space to attract your ideal client.” [12:15]

• On value over price:

  • “If you are only competing with price, you will slowly… run your business into the ground.” [10:12]

• Handling pushback with confidence:

  • “Your job is to be clear, professional, and kind. Your job is to communicate the value, but it’s not to talk someone into seeing your worth.” [47:20]

• On ideal clients:

  • "Clients who see your value will stay. Clients who don’t will leave. That’s okay." [48:02]

Important Timestamps

• 00:00–03:30: Episode intro, context, and brief on Growth Factor Fundamentals program
• 03:31–11:30: Why price increases matter; business sustainability basics
• 11:31–20:00: Two scenarios for raising prices; incremental vs rip-the-band-aid approach
• 23:20: Real-world example of a $100 service price jump and its impact
• 27:40: Importance of knowing your numbers; use of the cost and profitability tracker
• 36:50–47:20: Communication tips, scripts, and handling pushback
• 53:10–56:35: Year-end promotions, membership pushes, and gift card/package sales
• 56:35–59:19: Step-by-step action plan for a successful price increase
• 59:20–end: Closing encouragement and program invitation (skip for summary)

Closing Thoughts

Daniela empowers spa owners to embrace price increases not as a source of guilt, but as a necessary and strategic step for business health and growth. By understanding your numbers, communicating with clarity and confidence, and planning for both client transitions and new growth, you ensure a more sustainable and profitable spa practice in the new year.