There’s been a lot of talk about the R word in the past six months, but a lot of beauty professionals are wondering…will it really affect our industry?
Short answer? As most of us serve the market at large, probably yes.
And by some indicators, the recession is already here.
So does that mean you have to start cutting your prices and offer coupons to stay afloat through the uncertain economic times?
From the current signs, this recession won’t be the Groupon-popular recession of 2008. Instead, today’s consumers are looking for one thing…VALUE.
Consumers are walking into the recession with one of these mindsets:
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My values have changed and I’m looking for a business that aligns with them
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I have more money, but I need to be smarter about where I spend it.
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I am going to create a budget and stick to it.
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I want to get the biggest bang for my buck.
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I want to get out of debt and start investing.
Let’s dig into the three things you need to increase your value to appeal to these mindsets so you can survive (and dare we even say thrive) during the upcoming recession.
Increase your perceived value
There’s been a lot of conversation about perceived value, but what does it actually mean?
Perceived value is the difference between a prospective customer’s evaluation of the benefits and costs of one business or opportunity when compared with other businesses or opportunities.
Essentially, your services and packages feel like they are worth way more than their price tag when a potential guest compares them to the offerings from another salon.
So how do you increase your perceived value?
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Determine your proper pricing and charge your worth.
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Be special and have a specialty. Doing good hair just isn’t enough anymore. Listen in to this podcast episode to learn how to find yours.
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Build a true culture (yes, even if you’re a studio suite owner, you’ve got to focus on culture.)
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Create an authentic brand (and yes, even if you’re a commission salon with an established brand, you 100% need your own.)
Want to dig deeper into perceived value? This episode is just for you!
Set up the right systems
Once you’ve increased your perceived value, you need the right systems in place to support it. Otherwise, it can fluctuate and make your business look more like a risk than a sure thing to potential clients. And one things consumers don’t want to risk during a recession is money.
First, clarify your North Star. Do you want to be the top texture specialist in your community? Lead the most profitable salon in your state? Teach stylists the secrets behind your exceptional guest experience? Whatever you’re trying to achieve, get clear on it.
Next, determine what systems you need to implement or modify to achieve that North Star. If you want to be a top texture specialist, for example, do you have systems in place to show on social media WHY you’re the best of the best and continue to increase your perceived value? Systems might include taking before and after photos of every guest in your chair, creating time to show up regularly on Instagram Live, crafting captions that solve your target market’s biggest issues?
Other systems you might consider are:
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Content planning
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Financial management
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Marketing and brand consistency
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Strategic goal planning
Setting up systems is the most sustainable way to ensure that once you increase your perceived value, it stays there.
If you need help setting up and maintaining these systems, check out Wealthiest Year Yet!
Keep showing up for your clients
Listen, we know this one seems a little obvious, but stick with us here. When things get uncertain, either financially, emotionally, personally, whatever, having somebody be a consistent bright light can be a game changer…and shift you and your business from a nice-to-have to a necessity.
If you know your clients and/or target market are being especially hit hard, show up in-salon and on social media with kindness and understanding. For example, share in social media posts how they can make their blowouts last at home or ways to extend their style.
As much as possible, keep showing up authentically. That’s why your clients fell in love with your and your business, and that’s why they;ll keep coming back through the recession and after.
A recession is an uncertain time for you and your clients. But if you put these three elements into play in your business, you’re in a much stronger position to come through these economic times on top.