Dealing With Downturns

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When Michelle Singletary, Washington Post’s personal financial columnist, starts siding with Ben Bernanke about today’s economic outlook, take notice.

This is one influential African-American journalist you want to keep an eye on. Here’s what she said, to both you and your clients, in a recent column:

“[Y]ou have to do more then fret. The key to beat inflation is to do what Bernanke says. You have to be flexible with your finances. You have to act. Stop talking about cutting costs and do it — now.”

But it’s not just Bernanke. Newspapers are reporting statistics like…

• couples with two cars need an extra $1,500 this year for gas
• credit card minimum payment thresholds have been increased
• saving account interest rates have decreased

…and your clients are in the spa less. Your clients are getting their hair done less.

Wanting a quick poll in one of the online networking sites I visit, I asked:

“Is cost cutting affecting your personal care? For example, are you in the spa or salon less? Skimping on care goodies?”

That immediately got a response from a blogger, along with this one from an attorney, and then a hard hitting follow up from ShannonRenee.

These ladies are representative and while they are reducing their visits to salons and spas, less can be more.

For example, check the foot traffic at the downscale, one-stop nail shop. Has it increased? If so, the owners of these locations have attracted the frugal beauties that you may be interested in seeing. You may see offers of upgraded options, with several levels of choices that accommodate wallets from big to small. Try the same approach in your shop.

Not your style? There’s another way to differentiate your business. For example, I was surprised when my spa esthetician recently said, as she did my American French manicure gel nails (yes, fabulous), “We haven’t seen a drop in clientele since spa is a lifestyle and they have the incomes to support it.”

Did you catch the difference between the fate of the spas my online network mentioned and the one I visited?

The spa I frequent has trained its staff and branded itself as an essential part of life!

Good economy. Bad economy. Looking and feeling good is paramount to the clients of that spa.

So what is it going to take to spare your salon or spa from the economic downturn? More staff training? Branding? Often mentioned by salon and spa consultants, my spin on this approach for multicultural marketing and selling requires that you start by being different, relevant and providing “affordable affluence.”

How can you be different? What about the spa concept in Toronto, Canada that requires membership?

How can you become more relevant? Take the example of a spa in East Dulwich, United Kingdom that offers daycare services at certain times during the week.

What about “affordable affluence?” Boost sales quickly by focusing on simple products that aren’t expensive, much like television reality show hair stylist, Karen Wallington. She sells American Apparel clothing branded with her logo and slogans catering to dreadlock wearers.

Each are easy to try examples that have attracted more clients for each of the businesses involved.

So, whether you’re trying the “Less Is More Approach” or the “Lifestyle Approach” how is your spa or salon faring in this economy?