Send us a text
This week, we're discussing money.
Topics include:
- Freebies and why you should pay attention to the big companies reworking their strategies
- Some industry statistics we found interesting
- Inflation
Todd kicks things off with a story about an oyster. Then he breaks down a couple of examples from Red Robin (the burger place) and Sephora.
Some statistics:
- Americans spend an average of $110 monthly on beauty, fitness, and wellness, with women averaging $124 per month and men $94 per month.
- 58% of Americans would not cut beauty spending despite a looming recession.
- 25% of consumers claim they only buy eco-friendly beauty products, while over three-quarters are concerned about the environmental impact of the products they buy.
- 92% of buyers claim they'd be more loyal to cosmetic brands that supported environmental or social causes.
- 67% of beauty shoppers turned to social media influencers to seek information about beauty products before purchasing, followed by third-party reviews (59%) and beauty professionals (55%).
- 44% of beauty salons said they were focusing on growing their social media profiles in 2022, while 35% of hair pros claim their growing social following was their biggest opportunity for business growth.
- 92% of a salon's income is from cut, styling, and color services, followed by retail sales (8%) and care services (7%).
- The average hourly wage of a hairstylist in the United States is $18 as of December 2022, though the range is between $11.78 and $20.19.
- Beauty salons account for 95% of industry revenue — barbershops make up the other 5%.
- About 70% of U.S. women invest in hair coloring and styling.
- The U.S. state with the most expensive men's haircut is Delaware at $42; West Virginia is the cheapest, averaging just $15 per cut.
- California is the most expensive state to get a women's haircut, with prices averaging $93 — 81% more than a cut in Wyoming, which averages around $17.
Eliminating Freebies:
Cost Control: Offering freebies can be a significant drain on your biz.
Profit Margins: To sustain and grow your business, it's essential to maintain healthy profit margins. Freebies can reduce margins by increasing your costs without a corresponding increase in revenue.
Client Expectations: Offering freebies can sometimes set unrealistic expectations among clients.
Todd shares a story about free water and his gym.
Dealing with Inflation:
Pricing Adjustments: To maintain profitability, it's essential to periodically review and adjust your prices to reflect these increased costs.
Transparency: When you need to raise prices, it's crucial to communicate this transparently to your clients. Don't surprise people.
Perceived Value: Step up your game. Become virtuous by doing the little things exceptionally.
Cost Management: Beyond adjusting prices, actively manage your business costs.
Financial Planning: Develop a financial plan that includes forecasting for inflation.
Diversification: Explore diversification opportunities within the hair industry.
This stuff is possible, and it's being done whether you're comfortable with it or not. At a certain point, your biz can't survive withou
Links and Stuff:
Our Newsletter
Mentoring Inquiries
Find more of our things:
Instagram
Hello Hair Pro Website