Should Your Salon Consider Surcharges? Here’s What to Know

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A surcharge is an additional fee added to the price of a service or good to cover the cost of a business expense. Cutting-edge salon software makes it easy for business owners to use surcharges to offset credit card processing fees, but there are differing opinions about whether this is a savvy business decision. 

Here are some important details salon owners should consider when thinking about surcharges.

 The Case for Surcharges

 Beauty salon management software that can securely store payment information makes it easier to accept appointment deposits, charge cancellation fees, and sell products. However, credit card processing fees can add up, which is why some salon owners choose to offset this expense with surcharges. 

A reasonable surcharge, generally between three and five percent, can benefit your salon and clients in these key ways:

  • Keep Prices Steady: Adding a surcharge can keep your salon from having to raise the price of your core services, maintaining consistency and boosting brand loyalty.

  • Build Trust: Being transparent about surcharges by clearly itemizing them on a receipt, rather than simply raising prices, shows clients that your business is upfront about additional charges.

  • Reinvest in Quality: The money your salon recovers by offsetting fees with surcharges can be reinvested in your business. You might use these funds to pay your team more competitive wages, fund training opportunities, or invest in high-quality supplies.

The Case Against Surcharges

Even though great spa and salon management software makes it easy to implement surcharges, not every business owner is in favor of them.

Here are a few reasons why clients and stylists oppose surcharges:

  • Bookkeeping Hassles: Some clients may choose to pay in cash to avoid a credit card processing fee. Managing cash payments can be an additional burden on business owners.

  • State Regulations: Not every state allows surcharges, and some have strict regulations.

  • Reputation: While some salon owners view surcharges as a necessary way to protect their profitability, others view them as a way to pass standard business expenses onto customers.

Ultimately, the decision is up to you. Listening to your staff, considering your clients, and evaluating your business can help you determine if surcharges are best for your salon.

About DaySmart Salon

Transform the way your salon does business with DaySmart Salon. For over 20 years, DaySmart Salon has catered to the evolving needs of salons of all sizes with their innovative business management software. As an all-in-one platform, DaySmart Salon can help you streamline appointment scheduling, payments, HR, and much more. The result? Instead of filling your days with tedious logistical or administrative tasks, you can focus more on creating memorable client experiences and thinking big picture.

 Run your salon your way with software from DaySmart Salon at https://www.daysmart.com/salon/

Location: 312 S State St, Ann Arbor, MI 48104, USA

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