Our company, Kesae Total balance, Japanese Cranial Massage Therapy, has a fixed price even if our salon is already fully booked and some customers need to wait for a month for their booking. We have no intention of increasing or decreasing the price. Nor do we plan to focus on any individual’s performance.
Rather than raising the price, we decided to recruit another therapist and open another salon closest to us so that we can make sure this new salon will grow at the same speed as the first one.
I decided to take this approach right from the start of my involvement and here is the reason why.
The basic principle for raising the price is that you have a situation where you cannot get new customers because you are fully booked, but new customers still ask for booking.
In this case, even if you increase the price, your customers keep coming since your salon was having too many customers. You will be able to generate more production without any problem.
However, if you are going to expand your business by opening your salon to different locations like us, there is a high possibility that the growth speed of another salon might get affected IF you increase the price.
Also, If you increase the price for a particular therapist because she is performing so well as such, you are actually shifting from a “brand image” to a “personal image”.
Again, there is nothing wrong with this strategy, but we just don’t do it.
If you started to focus on individual performance for your business, those who are not performing as well as the top therapist will be chosen less, thus bringing less revenue.
So In order for all therapists to take bookings in a balanced manner, you have to set up the framework for your salon in a way that all of them can perform in a balanced manner.
So Increasing or decreasing the price can possibly disrupt that balance. Also, it leads to increased productivity and changing future strategies, so we must keep that in mind when setting up the price.
Again, raising the price is not a bad idea, but it is important to create “how I want my business to be” “What I want to see” rather than chasing immediate revenue increase so that our brand image and message becomes stronger in a target market.
So far, this strategy has been working well although our growth speed slowed down due to covid lockdown…
Anyway, really looking forward to reopening our massage salon sometime soon…
