The thing about entrepreneurs is that they’re also consumers, so if you own your own venture, you’ll know that prices across a range of products and markets have increased of late.
While overall inflation in the UK dipped to 9.9% in August, for example, food inflation continued to run at 13.1% as the cost of everyday produce and goods rose at a highly disproportionate pace to earnings.
This is creating a challenge for business owners, particularly those who deal primarily in non-essential goods and services as consumers re-evaluate spending habits to offset rising prices. Take salon owners, for example, who must demonstrate the value of their treatments to justify price points as the cost-of-living continues to soar.
Educate Your Clients
Education is a key starting point for salon owners, both in terms of making consumers understand why they need treatments and explaining to clients the dangers of trying DIY versions themselves at home.
In terms of the former, clients need to understand the features of individual treatments in detail, while also comprehending how they translate into actionable benefits that are relevant to them. People are much more likely to invest in something if they can see that it will be worthwhile, and equally will not want to part with their hard-earned cash if they are not going to see real results.
As for the latter, with so many cheaper options on the market these days, many will be tempted to cut costs by trying off-the-shelf versions of their favourite salon treatments such as self-tanning and hair dye kits. Help keep clients in the salon by outlining the risks of DIY kits, such as allergic reaction, and explaining the benefits that make professional treatments superior and worth the expenditure.
Use Quality Products
It may seem obvious, but if you are trying to convince your customers of the value of your services, do not cut costs. It is vital that the quality of your treatments and products remains high, despite the temptation to reduce your own spending. This reinforces the idea that the advantage of using salons is gaining access to the best of the best.
Ideally, this means prioritising products that comprise safe and ethical ingredients that have been tested to a rigorous standard. This is especially important in the case of an acrylic nail kit and similar products which may contain toxins and chemicals that could prove harmful in some instances.
Given current eco-trends, it is also advisable to invest in products that are vegan and cruelty free, and to prioritise options which are recyclable. You could even create a refilling station to reduce plastic waste which would have the added advantage of appealing to environmentally-minded customers.
It’s important to reinforce the quality and safety features that characterise premium products and treatments while comparing and contrasting these directly with cheap, shop-bought alternatives.
Reward Customer Loyalty
From a business perspective, acquiring new customers can be five-times more expensive than retaining an existing base. To this end, increasing customer retention by 5% can increase profits by between 25% and 95%, so there’s huge value to be found in driving retention over time.
At the same time, some 39% of so-called “loyal” customers will spend more on products even if they can identify less expensive alternatives, due to the emotional connection that they have with a particular brand.
With these points in mind, it’s well worth establishing a loyalty scheme to reward repeat customers directly and incentivise them to spend more with your business.
Your initiative can reward clients in the form of either cash or points incentives, and you could also consider creating a referral scheme that rewards customers who introduce new leads.
