Should You Prepare For A Presidential Recession?
The 2016 presidential election has been a doozy and experts are predicting an economic crisis if Donald Trump or Hillary Clinton wins in November, while others predict a recession is coming regardless of the winner. But we’re not here to talk politics, we’re here to make sure you’re prepared for the unknown!
Luckily, salons and spas are less vulnerable to economic downturns!
According to a report by IBISWorld, revenue growth for beauty salons is projected to continue growing over the next three years, rising at an average annual rate of 3.2% to 58.7 billion by 2019, despite experts’ economic fears.
There are many reasons the beauty industry survives, or even thrives, in a tough economy. For example, more job seekers means more people willing to splurge on beauty to look good for an interview and make a good first impression. Also, do-it-yourselfers may have to return to the salon due to increased hours on the job. Although visiting the salon or spa tends to remain line-items on peoples’ budgets, some customers may curtail the number of services or seek more affordable options than before.
Here are some tips to prepare for some possible turbulence after the presidential election:
1. Offer and advertise services that help clients prepare for job interviews by looking younger and more put together. For example, an updated hairstyle and manicure as part of a discounted “interview package” would appeal to those affected by a recession. Make sure to advertise these services on social media, where unemployed and under-employed potential customers will be spending a lot of time.
2. Think about varying services and pricing levels based on customers’ needs. Give customers some control over how much they spend by offering services that range from basic to high-end. For example, a salon that markets itself as full-service can also be the home of “The $20 Press and Curl”. These promotions can help support high-end services while providing more cost-effective offerings to cost-conscious clients.
3. Offer membership programs that can lock in a client’s costs so they can effectively manage a tighter budget. Plus, memberships will give you more reliable income to pad your bottom line. Focus your marketing of these programs on the discounts and savings your clients will receive by signing up.
Have some tips or tricks for getting through a recession? We’d love to hear! Comment below to join the conversation!
About the Author
Matt is VP of Sales at ProSolutions Software. With over 20 years experience in the beauty industry, Matt teaches classes on topics including branding, management, marketing and advertising.
