Thriving Stylist Podcast – Episode #411

Title: When To Decrease Your Prices
Host: Britt Seva
Date: November 10, 2025

Episode Overview

Britt Seva tackles a seldom-discussed topic in the beauty industry: when and how to decrease your prices as a hairstylist or salon owner. Drawing from nearly two decades of experience, Britt walks through valid reasons for price decreases, critical mistakes to avoid, and exact steps to ensure a price reduction supports business growth and market positioning rather than causing setbacks.

Key Discussion Points & Insights

1. Why Talk About Decreasing Prices?

• Traditionally, stylists believe price increases show demand and growth, but sometimes a decrease is the smarter move.
• Most requests for decreases are for the wrong reasons, but there are legitimate circumstances.
• A decrease, done right, can improve your market position—if it results in you making less money, “you have bigger fish to fry.”
  (03:45)

2. Britt’s First Experience with Price Decreases

• Example from early career: A veteran stylist wanted a price decrease, believing her rates were intimidating clients.
• They reduced prices by 20% without strategy or “insulation.” The expected results never materialized—no influx of clients, no income boost.
• Britt’s main takeaway: “The part we did wrong was not the price decrease... I didn't have a plan to build and grow her in the new market.”
  (06:25)

3. The Three Main Reasons to Decrease Your Prices

A. When You Move (Local or Distant):

• Any move—across the country or down the street—requires price re-evaluation.
  • E.g., moving from Manhattan to Arkansas: prices must drop.
  • Local moves (even 20 minutes away) can require recalibration based on the new market.
    (11:45)
• “If you are moving at any type of way, I want you to run yourself through the Thriving Stylist Pricing Calculator...”
  (15:08)
• Tip: Lower your prices at the time of the move, or wait 90 days to raise them.

B. When You Change Your Service Experience:

• Simplifying, speeding up, or altering any element of the guest experience means revisiting prices.
• Efficiency can sometimes command a higher rate, but if quality drops or experience is simplified, a decrease may be appropriate.
  (18:10)

C. If You Know You’re Overpriced (and It Hurts Demand or Retention):

• Most common signs:
  • Not enough new clients showing interest.
  • Difficulty retaining loyal (“bread and butter”) clients.
• “If you’re starting to see a softening there, there’s a chance you’re overpriced.”
  (20:42)

4. Diagnostic Questions Before Any Decrease

• Is your price point grounded in math/science, not emotion or community Facebook groups?
  • “All those posts [about what everyone in town charges]... It’s irrelevant data. It doesn’t matter.”
    (23:14)
• How did you originally set your prices?
  • Basing prices on emotion, annual increases, or just matching others is flawed.
  • “You might not actually be decreasing, you might be marketing yourself correctly for the first time.”
    (25:09)
• Why did you last raise your prices?
  • If it was primarily due to increased costs (2021–2023 trend), beware: passing all costs to clients can backfire.
  • “Even McDonald’s had to roll back prices because they realized they overinflated.” (28:54)
• Are you actively marketing yourself?
  • Low demand may be a marketing issue, not a price issue; nine times out of ten, “their pricing is just fine, their marketing is lacking.”
    (31:30)
• Does your perceived value (via marketing) match the guest experience?
  • “You’re marketing yourself like a $60 haircut stylist when you want to be charging $130—it’s not going to work.”
    (33:58)
• Do you have a retention issue?
  • Falling retention could be experience or price. Analyze both.
  • “If your base retention is good but new guest retention isn’t, it’s probably not pricing; it’s a marketing challenge.”
    (36:47)
• Has anything changed in your business or life in the past 18 months?
  • Sometimes outside factors (personal turmoil) affect business—“changing the price point isn’t going to fix that.”
    (39:14)

5. How To Decrease Prices Effectively

• Decreases must be business-wide—never segment by client type.
  • “Never create multiple price points... offering discounts to long-timers will only be like shooting yourself in the foot.”
    (43:01)
• Before any decrease:
  1. Strengthen marketing for at least 30 days.
     • Update your funnel, website, and social media.
     • “You might find that your demand increases from that and don’t even need the decrease!”
       (44:09)
  2. Only after marketing efforts and thorough diagnostics, then implement the decrease.
     • Update price everywhere.
     • No explanations needed—just clarity.
• Sample Client Language (for Moves):
  • “I’m really excited to share that with my new move, I’m actually operating at a different price point and for you it’s a little bit lower.”
    (50:30)
• Sample Client Language (Not Moving, Just Correcting Overpricing):
  • “I’ve shifted my pricing structure and, for the services you get, it’s actually going to reduce your rate.” (52:01)
• Never say, “My business is suffering”—keep language positive and factual.
• Price for everyone, update all platforms, and let it work.

Notable Quotes & Memorable Moments

• On the biggest mistake with price decreases:
  “The part we did wrong was not the price decrease... The part that I did wrong was I didn't have a plan to build and grow her in the new market.” (06:25)
• On using social proof for pricing:
  “All those posts with literally hundreds of comments on them. It’s irrelevant data. Completely irrelevant.” (23:14)
• On cost of goods increases:
  “If cost of goods can affect a multi-billion dollar brand like McDonald’s at such a scale that they walk it back and decrease their prices, you’re not too good for it.” (28:54)
• On correcting overpricing:
  “You might not actually be decreasing, you might be marketing yourself correctly in your market for the first time, literally ever.” (25:09)
• On retention metrics:
  “If your existing people are in, your long-timers are happy campers at the price point they’re at, and new people would be paying the same price point but are not wanting to stick around and pay it, it’s likely a new client experience or a marketing challenge, not a pricing issue.” (36:47)
• On verbiage for clients:
  “I’ve shifted my pricing structure and, for the services you get, it’s actually going to reduce your rate... You almost say it like, I can’t believe it, but for you, you lucky, lucky winner, it’s actually going to be less.” (52:05)

Timestamps for Important Segments

• 03:45: Introduction—Why decrease prices?
• 06:25: Britt’s first (failed) attempt at a price decrease
• 11:45: Three reasons to decrease prices (Moves, Service Experience, Overpricing)
• 23:14: Myths about price setting—why not to use community crowdsourcing
• 28:54: Cost of goods increases and market reactions (McDonald’s example)
• 31:30: Is it your marketing, not your price?
• 36:47: Retention: deciphering new vs. existing client trends
• 39:14: When outside factors (life changes) are the root issue
• 43:01: How to roll out a price decrease properly
• 44:09: “Buffer” with 30 days of improved marketing
• 50:30: Client language for price decreases after a move
• 52:01: Client language for other decrease scenarios

Conclusion

Britt closes by reminding stylists and salon owners that reducing prices, when necessary, is a strategic business move—not a sign of failure or weakness. She emphasizes the importance of groundwork: sound market research, proper marketing, and full transparency with clients. Approached correctly, a price decrease can strengthen your business for the long-term.

"I hope this has been clarifying... So much love, happy business building, and I'll see you on the next one." (53:45)

For detailed support on pricing and marketing strategies, Britt invites listeners to connect via Instagram or the Thriving Stylist Method community.