Is the Beauty Industry Recession-Proof? 4 Ways to Weather a Possible Recession
There’s been one big “R” word on everybody’s mind lately: recession.
Typically, we face a recession every decade or so, and since the last one was The Great Recession from 2007 to 2009, we’re long overdue.
But here’s the beautiful thing about our industry (no pun intended)…people always want to look their best. But their definition of “their best” might shift a bit during a recession.
So how do you prepare your hair business for a recession? Britt sat down with Thriver, salon owner, and stylist Caitlin Lozano on the Thriving Stylist Podcast to talk about economic shifts, 2022 recession hair industry trends, and what she is doing now to recession-proof her business.
Today on the blog, we’re going to dig into the highlights of their conversation and what you can do today to prepare for a possible 2022 recession in the hair industry.
Focus on building the brand and clientele you want
There’s this temptation when the economy shifts to just do the services people want, right?
But we’ll be honest: if those services aren’t aligned with your North Star, you aren’t doing yourself, your clients, or your business any favors because you aren’t focusing on the brand or clientele you want…meaning when the recession is over, you’ll struggle to build your dream business back up.
Instead, build the business you want, even during a recession. Yes, it’ll probably be a struggle to do an extensions-only business, but you can still create the luxury brand that attracts clients who will want extensions when the recession passes.
Sustain the client relationship, not your service menu
We have to say it: when there’s a possible recession in the hair industry, one of the first things to go is luxury services.
Does that mean if you have a full luxury service business (like you only do extensions), you have to close up shop? Absolutely not.
For example, in her interview, Caitlin digs into how she is retaining her current luxury clients by building packages and finding new methods to give them the look they love without the price tag.
Because here’s the thing: today’s consumers want to do business with a person, not a faceless brand. They want a connection with you, and if they get one, they’ll keep coming back throughout the recession and well after.
So how do you focus on your client relationship with a possible recession? Ask yourself:
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What do your clients come to see you for? What are you known for? What is your specialty?
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How can you still serve them at a high quality but in a way that’s easier on their pocketbook?
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How can you adjust your service menu so you’re doing cost-effective services that still light you up?
Value your (and their) time
In the podcast episode, Caitlin mentions a core group of her salon’s clientele is located in a small town three hours away, meaning it’s a big investment of her clients’ most precious resources (time and money) to come see her, so she wants to give them the best experience, even if her luxury services are on hold.
Think about your business. Even if you don’t consider your services luxury, how can you level them up in a low-cost way that makes clients feel like their time and money is well spent with you?
Here are some ideas to get you started:
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Stop double booking. It makes the guest experience feel rushed.
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Offer deep cleaning or hair health services that clients wouldn’t normally think of.
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Level up your amenities. What would your target market love to have in your chair?
Love on your existing clients
Have you heard that it’s six times more expensive to win a new customer than it is to retain a current one? With a possible recession around the corner, that’s a scary number.
And, chances are, your new guest requests might go down during a recession.
But don’t worry. Loving on your current clientele a little extra during an economic downturn has two huge benefits:
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It makes them feel good about spending time and (hopefully more) money with you.
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It makes them want to refer you to their friends and family, adding more dream clients to your business.
So add a little extra love in for your current clientele. It doesn’t have to be a big gesture to feel appreciated.
With a possible economic shift on the horizon, it’s easy to freak out, but don’t worry. If you create a strategy and stick to it, you’ll weather whatever the 2022 hair industry has in store for us and beyond. And if you want to dig deeper, click here to listen to how Thriver Caitlin Lozano is preparing her business for a possible recession (or tune in to her interview on YouTube)! You can follow Caitlin @caitlindoescolor or her salon @moxieandco.salon on Instagram!
