The past several years have been difficult for all of us, and rampant rumors of an upcoming recession can concern business owners and entrepreneurs. On the other hand, several economic estimates and analyses suggest that Australia may be able to avoid joining the rest of the world in entering a recession.
Suppose you are an entrepreneur in the lash industry. In that case, you may have only recently recovered financially from the pandemic’s financial crisis, and the ongoing unpredictability may not provide you with any solace. If the news of an economic slowdown has made you anxious and worried about your company’s future, then we won’t be surprised.
In this article, we will explore the reasons why being in the beauty industry gives you an advantage, as well as the ins and outs of recession-proofing your business by selling your products, which is the most reliable approach to keeping your company afloat no matter what the weather throws at it.
The Lipstick effect
Investopedia says, “The Lipstick effect” occurs when customers’ salaries diminish. This causes them to forego the purchase of large-ticket luxury products they can no longer afford in favor of spending their (lower) discretionary budget on smaller-ticket luxury items. During the Great Depression, the beauty and cosmetics sector was the only successful industry despite the general economic downturn. By the adage that “History repeats itself,” there is a good probability that you will be able to weather another storm if you plan and keep your attention on the task at hand. Did you know there was a seventy percent increase in the amount of eyelash-related products sold over the internet in 2021 compared to 2019? Good, hey?
The following is a list of the most effective actions you can take to protect your lash business from the effects of the recession:
Get familiar with your clients.
It is necessary to conduct behavior analysis on your customers. Keep a notebook where you note their important days, such as birthdays, anniversaries, and upcoming vacations. It is a good idea to keep a notebook handy in which you can jot down any pertinent information that you may pick up from them in the course of an informal chat. You can retail products to your customers by assembling appropriate aftercare kits and gaining insight into their purchasing power. Among other things, our oil-free under-eye serum is extremely effective and highly recommended by lash artists worldwide. Try using soft selling techniques with our sachet packs. Sachet packs can be an ideal way for customers to evaluate the results of a product before making a financial commitment to purchasing it.
Concentrate on the consumer experience.
A company that does not prioritize providing its clients with high-quality service will not succeed. As a lash artist, it is your responsibility to present clients with gorgeous lashes worthy of being envious of and an experience they will never forget. They will have a greater degree of trust in both your business and your abilities if you take the time to educate them about lashes and propose items that show results right away. This presents you with an additional option to generate revenue through word-of-mouth marketing. In the beauty industry, customers are particular about their beauty artists. Suppose you foster that relationship with your exceptional lashing abilities, wonderful customer service, and effective products. In that case, you can rest comfortably that you have constructed your firm so that it can sail through a crisis.
Resolve your client’s concern.
As a lash artist, you want to be the person your client turns to when they are having problems with their lashes, just as you may start your day with coffee from your favorite local coffee shop, see a therapist to get help with your mental health, or talk to a friend when you need to be heard. In the same way, you want to be the person your client turns to when they are having problems with their mental health. It is important to inquire about the beauty routines of your customers, whether they are returning or new. Whether they are willing to commit to lash aftercare or are addicted to makeup or face creams, you will supply them with a customized solution to their concerns and a means to retail those items regularly. This will be the case regardless of whether they are addicted to makeup or face creams.
Have a retail spot
Whether you run your business out of your home or a commercial location, having a retail area is a fantastic opportunity to increase sales and expand your customer base. Make sure it has an appealing look from an aesthetic standpoint. Create your shop space in such a way that it is strategically located in an area that is easily accessible for your customers so that they can go through the products. It can be close to the cash register or the waiting area. Make use of bundle packs to save time while also assisting customers in making quick judgments that are better informed. Maintain an easily accessible and understandable product line as well as instructions. Separate them into different categories, such as “Skin and Lash Care,” “Makeup and Lash Care,” “Accessories for Beautiful Lashes,” and so on. They will become more certain of what they desire with the assistance of these hints.
Invest in a website and marketing that is of high quality.
We can’t place adequate stress on the significance of marketing your products and having your website. Your customers will have a much easier time purchasing your goods if you have an online store and connect it to your Facebook and Instagram sites instead of physically purchasing them from your store. Nowadays, when the world is at your fingertips, connecting an online store to your social media pages is essential. Think about the occasions when they are traveling or haven’t remembered to pick up their items at their appointment; having an online store gives them the security that they can get it from you whenever they want, and you are also providing them with an additional service. Think about the instances when they have forgotten to pick up their products during their appointment. If the customer is local, you might deliver the products yourself by choosing a day when business is slower at your place of employment. Positive reinforcement of the products you are selling can be accomplished by distributing monthly newsletters that emphasize the benefits of the products or sharing reviews of those products.
Here Are Six Ways to Make Your Company More Recession-Proof
There are some harsh new realities that every firm must immediately adapt to, and they all must do so simultaneously. It is becoming more difficult than ever to anticipate what will occur in the current climate of fluctuating markets, which includes commodities that are soaring and then falling, unpredictable currencies, and stock values that are making tremendous gains… then making huge losses.
Getting ready for what was bound to happen
Most companies know what this economic crisis means regarding their day-to-day challenges. It will result in decreased activity, canceled orders, lower revenues, and possibly the need to cut expenditures to the bone, hindering your capacity to run your business efficiently.
If there is one certain thing, it is that no one knows how far this mess will go before it is completely unwound and returns to a balance that can be considered acceptable. However, in the long run, we will all emerge victorious. As a result, the total business will again be on the upswing as the pendulum eventually swings back in the opposite direction. In the meantime, you will need to take the necessary actions to ensure that your company will continue to exist and will be able to function at a rate adapted to your particular life circumstances.
Having stated that, let’s go on to a discussion of the following six concrete strategies that can help you weather the storm, deal with all of this upheaval and uncertainty, and help you make your firm more resistant to the effects of the recession:
1. Go where the reliable buyers are.
A certain percentage of customers or clients always require what you offer, and their purchasing is relatively insulated from the effects of the current economic climate. This is true for every firm. You may and should focus your efforts on promoting to them, especially to increase the frequency of their purchases, and you should also make an active attempt to locate other buyers who are just like them.
If you are not already able to identify these folks within your existing clients, you should build a promotion intended to attract them. You can concentrate your marketing message, also known as your “positioning,” in such a manner that it appeals to—and would specifically be appealing to—individuals whose shopping behaviors are unaffected by the economy as a whole. If you know who they are, you can target them more effectively.
2. Go to the consistent marketplaces.
Concentrate on locating markets or groups of people (associations, trade groups, clubs, etc.) who have a continuous demand and/or requirement for what you’re giving and then identifying those markets or groups. And, if at all possible, secure future business by negotiating exclusive provider agreements with the organizations above.
Permit me to posit the possibility that there are markets that have not been investigated at all and which have been utterly ignored even though they might be a suitable fit for your company. It’s possible that there are a large number of distinct groups and subgroups of people who would be interested in what you have to offer but that you haven’t even thought about them previously.
3. Follow the money.
Once I say it, this one could seem rather clear, but sadly, it isn’t often entirely thought out with the clarity that might be required to make the remark useful: Sell your wares to those who already possess money.
William “Willie” Sutton was a prolific bank robber in the United States during the 1930s. One of his most famous quotes is often ascribed to him and asks, “Why do you rob banks?”… The response is always the same: “Because that’s where the money is.” When attempting to diagnose a problem, one should first perform the experiment that can confirm the most likely diagnosis, as stated in the remark above, which served as the basis for Sutton’s law, which is taught to medical students. This law indicates that when attempting to diagnose a problem, one should execute an experiment that can confirm the most likely diagnosis. In the context of what we are doing here, it means “go to where the money is.”
4. Provide assistance and relief to those in need.
Pain can manifest itself in various ways… and isn’t always a bodily sensation. Others who are having problems financially are in mental and psychological anguish and want relief just as urgently as others who are not having financial trouble. When dealing with persons in this state, the fact that they do not have a lot of money to spend is the primary challenge. However, they may have some. They may have a healthy cash flow, but it is not sufficient.
Suppose your line of work can be positioned in such a way as to provide individuals with some sort of relaxation or comfort (even if only for a short while). In that case, you may discover this is an appealing proposition to potential customers. When trying to attract consumers in this situation, careful consideration should be given to a uniquely positioned proposition.
5. Provide a remedy for an existing issue.
This one is a “tried and true” strategy that works well even when the economy is doing well, but it has the potential to become a dominant theme that is much more effective when circumstances are difficult. You need to zero in on a single challenge or concern at a time and make that the primary emphasis of each of your marketing messages. In this way, you will be able to narrow your focus on attracting people who are looking for a solution to a specific problem or issue, and you will be able to approach them with an offering that will assist them in resolving and alleviating that problem or issue.
But you should make sure that you have a precise follow-up-to-conversion process in place and that this process does not dilute the emphasis with a choice of options, or even worse, that this process is not at all unique to the problem or issue that initially drew the prospect’s attention. First, you should try to sell them “the answer,” and only after you’ve succeeded in getting them to commit to your primary, solution-centered approach to the problem can you look into other opportunities.
6. Provide a way out.
If what you’re selling can be positioned as a “life raft” or “escape hatch” in times of need, you won’t have any trouble attracting potential buyers since they will see the value you’re offering. However, in order to avoid a hornet’s nest of dissatisfied customers, you must ensure that the product or service you provide lives up to the promise made about it.
One of the most effective ways to motivate people during times of greens is to demonstrate that you can provide them with their respite or a genuine escape from the problem you are facing. Imagine something like this: “A truck full of plywood rolling through a neighborhood that has just been informed that a hurricane is impending.”
As an entrepreneur, your capacity to plan for the future… and run your firm in an environment that is stable and predictable – is now at peril for the foreseeable near-term future. This situation is likely to continue for the foreseeable near-term future. During these more difficult times, what is required are decisive decisions to place your company on a successful foundation so that you will be able to prosper when things finally do shift for the better.
Final Thoughts
After 2020, it will be more important than ever to purchase high-quality goods, given that the Lipstick effect is the shopping behavior of consumers. According to some studies, people are more likely to purchase one pricey product as opposed to three of a lower value. Therefore, as part of your new company strategy for the year 2023, your primary focus should not only be on selling a variety of useful lash aftercare products but also on selling items that are of high quality and have a noticeable influence on their application.
Gollee Lash has always been a strong supporter of and benefactor to the lash industry’s overall health and prosperity. We are always looking for new ways to bring members of the community together so that we can give them a chance to assist one another and become more economically self-sufficient. The requirements of the lash community served as the inspiration for our product development.
