Covid-19 has changed the economic landscape across all industries, some for the better, and most for the worse. The beauty industry is no exception to these changes and it’s important to understand what consumers are prioritizing and what providers can do to take advantage of this point in society and how things are after the pandemic.
One of the most important things that I consider when making a business decision is data. In business, data should be your best friend. Every decision you make should be a result of you analyzing what is and isn’t working. What are the facts telling us? What are the numbers looking like?
Before labeling myself a beauty professional, I’m a numbers person with a finance degree, so the natural next step for me is to always check the stats. Let’s do that!
We are living in what economists are calling the experience economy. What is the experience economy? How does it affect you? What does it mean for your prices?
It means that consumers are prioritizing the service experience over price point. Before location and convenience, consumers are prioritizing experience. Clients will pay more and will travel further to meet with the service provider who is willing to go the extra mile and provide the most pampering experience. The most indulgent experience that will relieve their stress as they unwind from the heaviness of the pandemic.
Lasering in on our industry, over 25% of the pre-covid beauty workforce is no longer in business. That is a tough but real fact across the board, but with that, low comes opportunity. The decreased workforce has created a huge gap in available providers, which means that anyone still in business has a chance to attract the market share that is looking to become loyal to a new provider.
If you read my blog post on how to price your services, a few weeks ago, you learned that price point and experience go hand in hand. So if we know that consumers are paying more for a pampering experience because that’s what they’re prioritizing, what does that mean for you? It means that if you were at a very attainable pocket friendly pricing tier providing an average experience, now is the time for you to explore what your business could look like if you leveled up.
What experience could you commit to on the mid-tier or luxury level, now knowing that consumers are willing to pay more? What can you do to take advantage of that? What can you do to adapt your business to consumer behavior?
This is just one of the many things that makes Smart Beauty Pros different from anyone else teaching beauty business systems in the market. We keep such a tight pulse on the industry on all levels. Not just on superficial levels like watching social media trends. But on industry consumer spending as a whole.m How people are spending? How are people feeling? This is the information that will allow you to step into your CEO and make data based decisions.
My job, our job rather, here at Smart Beauty Pros, is to share this information so that together we can hash out a plan and you be more successful, and your strategies more effective.
With that said, what changes can you make in your business to adapt to where society is? How can you take advantage? How can you grow your business or make it even more sophisticated? Offer an experience that’s that’s just a cut above. How can you do that? Whether it’s amenities, the pre-appointment experience, or something simple like the scent in your space. These small touches matter in the grand scheme of experience.
Oh and one last thing, something else that I read in the economist article that they are projecting is that the experience economy is going to last upwards of five years.
That’s how long they think it’s going to take for consumers to move on from the heaviness of the pandemic. Time to buckle down and align your business to the shifts of the economy and take advantage of the opportunity that you have today.
That’s all from me today folks! Thanks for reading and catch you next time!
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