Caught between the devil & the deep blue sea!

[Sara Satchell]

Morning All,

Depending on who you listen to, we are either on the brink of a recession or in the throws of one – expected to last 2/3 years.

Although my business hasn’t been majorly affected yet, I have started to notice 1 or 2 regular’s cancelling their appointments, and a fall in new clients.

Usually I am always against giving a discount on prices as I feel it under value’s my work. BUT – in the current climate do we make allowances reduce our prices/put on special offers to maybe hang onto people who may be struggling a little more financially, or keep them as they are?

I am probably priced at the higher end of the market for my area, and am quite conscious that people will be going for the cheaper option. I am confident in the quality of my work, but not all clients have the view that you get what you pay for.

Would be interested to hear your opinions….

 

[Doorie]

not to be rude but there are many threads about it.
many topics about how useless it is to discount...
how you should add popits to your menu...

etc etc etc.

 

[Sara Satchell]

NOT TO BE RUDE IS A MATTER OF OPINION

Unfortunatley (depending on which way you look at it) I dont have time to trawl through the thousands of threads on here.

Your response is one of the reasons I don't post on here anymore!

 

[Poshfloss]

Hi Sara,
I too have noticed a drop in trade. I telephone regular clients to say not seen you in a while are you OK? The response has been yes fine, sorry I have not been coming - money is a bit tight.
I can see us all having a drop off, nail enhancements are a luxury item, although I would starve rather than not have mine, that is not the real world, one client stopped having hers because she was having a baby and could not afford her nails when not working.
This will be the same with all beauty treatments, waxing is advertised every day on tv..........how easy it looks!!!! Same with all beauty trades.........So I feel we may be in for a rough ride, hope most can ride it through.
I feel for those who have set up beautiful salons with bank loans, and now are struggling to make their payments.
I am lucky to have a home salon, so no worries if no one comes........it is an empty room if not my beauty room.
I hope things pick up for you.
Special offers are always a good draw.......try some it may help.
Best of luck
Lotsa luv x :hug:

 

[karentriff]

Hi Sarah
I think in these times it is a must to offer enticements to keep your clients. It doesn't necessarily have to be in the form of a discount as such.
Perhaps something like if they come for three rebalances they can have the fourth at a discount price. Another good one is to offer a discount on a service to your clients if they refer someone to you who goes on to use your services.
When the competition is offering cheaper prices it becomes especially important to build goodwill with your clients. I am just starting out and have chosen not to advertise but to build my customer base on referral and goodwill. I have prepared a small gift bag which I give to each client. It contains a 3.7ml solar oil, a mini buffer, a keyring which has a small bottle of nail polish on the bottom and a small nail file. I include several of my business cards and a note about my referral system. My clients are chuffed to think that I give them a gift. I take note of birthdays so I can give them a small gift. I have stocked up on little girls' novelty nail polishes and ask my customers if they have a young daughter and with her permission I give her the nail polish to pass on.
It does come down to how you market yourself in these tough times.
This week I have gained 5 new customers. This system is really working for me and the little bits and pieces that I buy for gifts along the way hardly add up to anything at all.
Food for thought anyways
Cheers
Karen

 

[geeg]

Sarah ... so good to see you posting on the nail geek ... this is an excellent post and one that every single nail technician on this site should be thinking about very carefully.

I have given it allot of thought and you may find some of my 'off topic' comments on the following thread useful. http://www.salongeek.com/nail-geek/76945-tptw-do-we-have-like-our-clients.html

As you know I do not believe in dropping prices by way of discounting. The message this gives to your clients is that you can AFFORD to drop your price because you are making so much money.

No one else is going to drop their prices to YOU.. your rent, rates, electric and products are not going to come down in price ... therefore you cannot afford to.

So we all have to get creative and learn to incentivise our clients with all sorts of special deals (Just like Sweet Squared are doing every month for their customers .... the deals on certain products are phenomenal and will SAVE YOU HEAPS OF MONEY).

THINK ABOUT WHAT WOULD ENTICE YOU!! Maybe something like:

If the client books and keeps her next 3 appoints at 2 week intervals you will do the 4th rebalance for half price. ( you win by getting them in the seat every 2 weeks and because of that the 4th rebalance will be quick and easy to do at half price or maybe even free (as long as it is a normal rebalance). THAT would appeal to me as a customer.

Offer a Full set using PopIts. You can name your price as it will only take you 30-40 minutes. This will appeal to every client particularly the younger end of the market and your ladies who lack time (which is pretty much all of us). You can rebalance the PopIt nails in the ordinary way by hand for the 2 weekly deal above.

Maybe offer a Free polish application or hand massage or a free product to all your clients who would be willing to come in on those slow days!! Then slow days may not be slow after all. This gives you more time on the busy days to take on the full sets of PopIts or couture nails.

What would excite you as a client ... to go to you as opposed to someone else?? Without compromising yourself or your high end image but at the same time letting your clients know their custom is valued by you.

I would sit down and work your way through the next 12 months and think of kick ass promotions to be offered every 8 weeks or so. Make a big deal of it in the salon so everyone knows or stick to your incentives for your long term clients and promotions for your new ones. I hope this has got you thinking and has helped.

 

[mdskora]

Thanks Geeg,
I have found the same in my business here in Australia.. we are hitting rock bottom.. People losing their homes.. ( 65 a day in Sydney alone)... things are not good.. i have had about 5 reg clients call me and say that they have taken their nails off until things improve.. petrol is another killler for my business.... priced way to high..
I will take all that on board and try your marketing advise..
Welcome back Sarah..
X Mel

 

[geeg]

Thanks Geeg,
I have found the same in my business here in Australia.. we are hitting rock bottom.. People losing their homes.. ( 65 a day in Sydney alone)... things are not good.. i have had about 5 reg clients call me and say that they have taken their nails off until things improve.. petrol is another killler for my business.... priced way to high..
I will take all that on board and try your marketing advise..
Welcome back Sarah..
X Mel

I was just speaking to a friend just this morning and she told me she has lost 7 regulars since she came back from her holiday! That is allot for a small business and all telling the same tale ... money is tight. I am hearing the same sort of tale every day now.

So no one should think they are 'sitting pretty' and can pick and choose at this time, because they can't.

I hope some ideas work out for you. It is going to be a tough time for all of us. But I think we can overcome if we get thinking and get Creative with those thoughts. Or should I have said creative!! :lol: Best of luck, and thank you for the welcome back! :hug:

 

[classyclaws]

Well I am "glad" to hear I am not the only one struggling. Sorry about the wording of that obviously I am not glad bykwim. I have been trying to set up my new business and finding it so difficult. I was in business a few years ago and found it relatively easy to get clients, this time though its like pulling teeth. I think we just have to ride it out and like Geeg says, get creative and think up some good marketing ideas. Things are bound to pick up eventually.! Chin up everyone!!

 

[sj1973]

Like you say EVERYONE is feeling the "pinch". What with petrol,shopping,etc. I think as long as you give good work ,which you say you are,just hang on in there,the work is still coming.People who work all week long will still want a treat,and thats where you come into it !!.

If your really worried,then do special offers but dont let yourself go down in the trap of "omg,they are closing so i better reduce my prices". Your work is good so you should get good money for it.

 

[Peter Pan]

Things dont seem to be affected as yet at our salon, im as busy as ever, with new clients coming every week, i even had to turn down clients for tomorrow morning, im booked up, back to back - so im thankful for that, while it lasts

 

[madpixie]

Hi Sara,

Totally understand where you're coming from - good to know its not just sunny sussex that's feeling the pinch at the mo!

I work both in a salon (part time) and mobile. Currently petrol costs are severely cutting down the amount I make per treatment when mobile, but luckily I haven't lost any of my regulars (touching lots of lucky wood whilst I type this!!).

In the salon however, whereas I used to be booked solid on the days I worked, now I'm only busy every so often. It seems that people still come in for treatments but less frequently than they used to, definitely less walk-in business. Retail spend has also slowed.

The situation will pass I'm sure, but in the meantime its thinking caps on for lots of canny marketing ideas (thank you Geeg!!)

Good luck pickle xxx

 

[crystaltash]

Hiya Sara,
It's the same in sunny Belfast too. This is my second time renting a room in a hairdressers and the first time, it was so easy to get clients in. Now it seem like a constant struggle. I am busy a few days and then other days, I would have no-one in! I am a good therapist, so I'm pretty sure it's not me that's driving them away.

Me and my clients are always talking about the rising cost of living. I think, though that here in Northern Ireland, July is a peak holiday month as people want to go away to avoid the 12th, so I'm putting some of my quietness down to the holidays.

Geeg's ideas are great. Gonna sit down and make a plan with those in mind. Thanks Geeg!!!

Anyway, hopefully we can all ride this out and come out the other side. i love beauty therapy and it would break my heart to give my wee business up, so I'm gonna put blood sweat and tears into making sure that this 'credit crunch' doesn't end me!!!

Good luck to everyone
lotsa love.
xxx

 

[angel fingers]

maybe try to introduce younger clients into your business.

its people with mortgages, fuel and food bills that are feeling the pinch the most, whereas people without those comitments, such as young people still living with parents are not seeing any change to their disposable income.

not sure how you would target them specifically , but i think thy could be an area to look into.

 

[Sara Satchell]

Hi again,

Thanks for all your replies and ideas.

I was running a loyalty & referal scheme but withdrew it several months ago due to the cost. I wish I hadn't now...

It worked like this...

Every visit a client makes for a full set or rebalance they get a £1 stamp onto their loyalty card, and everytime they refer someone to me who has a full set, they then get another £1. They could then cash them in after a minimum of £10 stamps were gained and could use it against retail products or further services.

It worked well, so maybe I should bring it back?

XXX

 

[naildoctor]

I think anytime you can get more people in the chair, the better! I know this thread didn't start out as you liked, but keep posting, I've learned a lot from it!:hug:

 

[jenny2]

I have to say a few years ago when i tried to go mobile with cheap prices i did nothing, i think i got one client ring a year later after i had walked the streets dropping leaflets for many an hour.
Before i went into the salon i rented again i dropped aload of leaflets at cheaper prices than my competitor and what did i get mmm one lady and i made nothing.
When i went into the rented room at more costly prices they cam in droves, i was shocked and since moving to home based even though it is slower i am averiging one to two a day, it is weird. I offer a loyalty scheme were if they have there eyebrows done six times they get it done the seventh for ree and the same with leg waxing and so on, my ladies love this. Thanks to kim my business with waxing seems to be going from strength to strength along with my confidence. Were as my other treatments don't seem to get that many. Eyebrows and brazillions are becoming my bread and butter to the point at a later date i may seak out a more advanced waxing course with kim and learn the skills she has.
jennyx

 

[geeg]

Someone sent me a heart today for my post in this thread ... So I re-visited it and found it quite interesting to read, 5 years on since it was posted!!!

Interesting to have experienced my 2nd recession in the nail business (first one in the 1980's). and to have grown my nail business right through both of them!

We are lucky to be in a business that has been 'recession resistant' and proved it on more than one occasion.

How many of you 'made it through the rain' like I did and came out smiling on the other side? God Bless Shellac from CND !! That innovation has saved many peoples' businesses because it started the whole UV-cured-manicure ball rolling.

 

[Emily S]

Great thread, was shocked to read it... until I saw the date! I actually thought the title of it was gonna be names of polish!!!

I started my business in 2009 and I'm pretty chuffed to know that I have made a pretty good success to say it was in the recession. Hope all who posted before managed to stay afloat and are still in business 5/6 years later

 

[geeg]

Great thread, was shocked to read it... until I saw the date! I actually thought the title of it was gonna be names of polish!!!

I started my business in 2009 and I'm pretty chuffed to know that I have made a pretty good success to say it was in the recession. Hope all who posted before managed to stay afloat and are still in business 5/6 years later

Thanks for posting .. I was beginning to think I was the only dinosaur on the block!