Ep 315 – Collaborate to Elevate: Growing Your Esthetics Business

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0:00:54.0 Maggie Stasik: Hello and welcome to ASCP's Esty Talk. I'm your co host Maggie Stasik and ASCP's program director.

0:01:00.7 Ella Cressman: I'm Ella Cressman, licensed esthetician, ingredient junkie and content contributor for Associated Skincare Professionals.

0:01:06.8 MS: Ella, have you seen the Future of Beauty report recently published by Square?

0:01:11.0 EC: No, but I'm excited.

0:01:12.6 MS: Yeah, it's pretty exciting. It pulls insights from thousands of beauty entrepreneurs and customers from around the world and it dives deep into where the beauty industry is right now and predicts what your most important customers will be looking for next. So kind of like a crystal ball for the future of beauty.

0:01:33.4 EC: Oh my gosh, what a cool thing. Because they're different than a randomized poll. They're actually taking real data. Hopefully people have their square items listed in a certain way, but they're taking the products that they use. The company, oh, this is really cool.

0:01:50.2 MS: Yeah, I thought it'd be fun to break down some of the key takeaways and talk about how all of this relates to us estheticians. So first is about consumer spending. And I want to chat about some news. It might make you pause. Consumers have pulled back a little when it comes to beauty spending.

0:02:08.7 EC: I've seen it. I've seen it firsthand. I believe it. It's interesting.

0:02:13.2 MS: Yeah. So the report found that 51% of consumers have actually cut back on beauty purchases, which is really interesting. But here's the twist. Beauty is still a top priority for a lot of people. They're just being more mindful about it.

0:02:28.9 EC: I'm curious if this is because a square is a preferred payment processing for a lot of professionals, does this translate to other markets as well? Like, are other markets calling these customers away or is the consumers just buying less because of sign of the times?

0:02:47.0 MS: Yeah, really good question. While people are spending less on things like restaurants or retail, beauty is still sticking around. But for us as beauty pros, it still means we're feeling some pressure on the financial side of things, but there's a silver lining. Beauty leaders have said they're planning to raise prices in the next year to compensate for this. What are your thoughts on that? Because you said you're feeling it.

0:03:11.8 EC: I'm feeling it. And it's a really hard thing because raising your prices isn't easy, especially... It was easier five years ago when it was well understood the price of a lot of goods went up like PPE, the things that weren't necessarily this cream or part of the facial, it was all the other things the price went up and people were really understanding about it and they understood and they were in a mindset where they still wanted to help boost the economy so they were still coming to you tipping extra, doing that because there was hope that there was gonna be restoration. And I think there was. But then I think as time has gone, and I don't mean to sound wah, wah, wah about this, but as time has gone on there, I don't know, the hope isn't as strong. I think there's still hope, but I think it's like, well, maybe I better settle in with my own spending habits and change the way because we gotta see what's gonna happen here.

0:04:09.6 MS: Yeah, I think that your loyal clients, they may stretch their appointments a little bit, but they're still likely to come back and they're gonna need their monthly facial, they're gonna need their brow waxed. They may just be stretching out the appointments a little bit.

0:04:25.2 EC: And their products paring down, like give me the best serum, that's gonna have the most impact. That's just one thing instead of nine things, which is also a trend in and of itself to simplify these large routines into something smaller. So I think both of those are hitting at the same time, stretching out and paring down of their home care or retail sales, which is understandable. I'm still grateful to retain them as clients to ride this out.

0:04:53.8 MS: Let's talk about upselling and diversifying revenue streams. So it's not just about offering a pricier service, it's about expanding your offerings. The report found that one third of beauty businesses are adding new services or products and some are even offering memberships, which I think is kind of new for the industry.

0:05:12.8 EC: What do you think about memberships? Because I think, are you involved in any membership based programs?

0:05:20.2 MS: No.

0:05:22.2 EC: I was involved. Well, my gym can be considered a membership. I pay, but I don't go.

0:05:27.3 MS: Wait, for health and beauty no memberships.

0:05:30.7 EC: No, not really. No. But Fabletics I was. Or that athletic company, it made it really... Let me just talk about that. Yeah, it made it really easy to buy. Yeah, it made it really, really easy. So I'm saying this for a couple of reasons, but psychologically I knew it was gonna come out. I knew that I could skip it that month. But I also knew that that price was going to go towards an outfit. So it would make me want to buy and I did to the point where I had every color leggings, every color undergarment and all these cute. I was, woo, looked really cute and I was going to the gym. So I think that they're actually really cool, including perhaps like a product. Like if you can somehow involve a product with the membership, I think that'd be really smart psychologically.

0:06:24.5 MS: Would you ever consider membership for your business?

0:06:27.3 EC: I would, I think I would. I think the only thing that would give me pause as a business owner is I don't like selling packages because I see the money then, like woo. And then I see somebody on my books who has a package. I'm like, no money today for that person. But if it was a membership model then it would just be coming in and play and you would have a lot more, I guess, a lot more freedom. Yeah, actually I would consider a membership. It's a good idea.

0:06:56.6 MS: Speaking of growth, did you know that 85% of beauty leaders say memberships or subscriptions gives them a positive return on investment. That's according to the report.

0:07:06.8 EC: Oh wow. I believe it.

0:07:08.5 MS: That's huge. So you don't have to be a big multi location business to offer this. Even small businesses can benefit from having clients pay in advance for services or products. But I get your point that you have that client who's prepaid and you see them on your books and you're like, well shoot, no money today from that client.

0:07:27.3 EC: Yeah. Or does that mean that I'd have to be more accessible, my availability would be the same? They'd have to get in. What if they couldn't get in because of their availability?

0:07:36.6 MS: Yeah, true.

0:07:37.4 EC: Would it just roll over to the next month or, maybe they could get it towards a product. There's all kinds of things turning in my head.

0:07:43.4 MS: Yeah. Have you seen interesting ways where other beauty pros are offering or doing this?

0:07:48.9 EC: I haven't.

0:07:49.9 MS: Yeah, I haven't either. I think it could be a game changer though in making revenue more predictable. Like imagine having 20% of your revenue locked in on the first day of each month.

0:08:00.6 EC: Yeah, very interesting. Hold that thought. We'll be right back.

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0:08:42.4 EC: Okay, here we go. Let's get back to the podcast.

0:08:45.3 MS: So let's talk about payment options for a second. Like buy now, pay later services. These are on the rise also and they are being embraced by 80% of beauty businesses. So if your clients are looking for more flexible payment options, this might be a time to consider it.

0:09:01.1 EC: This would be really good to implement, especially if you have those packages. I'm thinking of Laser for example.

0:09:07.9 MS: Oh, brilliant.

0:09:09.1 EC: Yeah. Or a package of let's say bikini brightening. That's around x$100. But you want to get started. How do you get someone in to buy those packages? What a great business idea on the business side.

0:09:21.8 MS: Yeah.

0:09:22.5 EC: The thing that I would say is to consider what are your fees as the business owner and then up the price.

0:09:29.6 MS: What do you think about rewards programs?

0:09:31.8 EC: I think they work and they're the test of time. I would say psychologically perhaps these buy now, pay later might be more successful. But again, I take advantage of those sometimes. Like I have, remember back in the day when they would stamp your card?

0:09:48.9 MS: Yeah.

0:09:49.4 EC: I have so many cards with one stamp on them for the same place, 'cause I would forget my card or whatever. But if I go and type in my phone number, they have that where I get my nails done. They have it where I get my coffee and they track it for me, I'm gonna opt in.

0:10:03.5 MS: Yeah. Use of technology. A lot of beauty businesses are jumping in on tech bandwagon. Automating, scheduling, marketing, staff management and tracking rewards. Over one third of beauty pros already are using tech to save time, make things more convenient for their clients. There are people, especially in our industry, who are maybe hesitant about tech or maybe it has to do with their age. I don't know.

0:10:29.1 EC: Their age or like what they think their capabilities are.

0:10:31.0 MS: Yeah.

0:10:31.5 EC: Accessibility to some of these.

0:10:33.5 MS: Totally. You can start small by experimenting with something like automated appointment booking. This report is coming from Square. That's tech right there. Even AI powered social media posts that's a way to use tech.

0:10:48.1 EC: Like with meta.

0:10:49.1 MS: Yep. Yeah. Your clients are already using this tech. So if you want to stay ahead of the curve, you should be adopting it too, I would say.

0:10:56.8 EC: Oh, for sure. Unless they're making it easier. Six years ago, seven years ago, these were all separate. Square was just payment processing. And then square became scheduling software and payment processing. And then now they can, this is just one example, but you can add different parts of that, which is amazing. They have integrations into websites, so it's a lot easier than it used to be.

0:11:22.4 MS: Yeah, I think it makes your business processing easier also. Like take appointment scheduling, for instance. And clients can upload their credit card information. Think about that client who's middle of the night, I want a bikini wax. They can go online. If you're not offering that for your clients, you're potentially missing out on that business.

0:11:43.0 EC: Yes.

0:11:44.0 MS: One trend that is not going anywhere, social media. We've talked about that a million times. Beauty pros are using platforms like Instagram and TikTok, obviously, sharing tutorials, tips, educational content. And it's not just about showing off pretty results, but also connecting with your clients.

0:12:01.5 EC: I think honestly I just recently watched a documentary on this YouTuber and part of the documentary was the perspective of a fan, a loyal watcher. And she said that she felt involved, engaged, and part of this, this was a life story, but still part of it. So she felt she knew this person and the familiarity. So I believe it. I think they're connecting with you and gaining not just perspective, but appreciation. This is interesting.

0:12:33.5 MS: That is interesting because back in the day when I was actively taking clients, how I connected was, like an in person event like bring the clients in for the day, I'm gonna share a quick little tip and maybe you're getting 10% off product or a quick brow wax or whatever the case may be. Social media was not like it is today. Social media today is how you are still engaging and connecting with your clients.

0:13:01.3 EC: Inadvertently.

0:13:02.0 MS: Inadvertently.

0:13:02.7 EC: But one person is engaging with many where they're watching you talk.

0:13:06.7 MS: Right.

0:13:07.2 EC: At an event. But it's just online.

0:13:09.8 MS: And it's maybe clients you don't even know you have yet.

0:13:11.7 EC: Yeah, a lot of them, I tell you, like Kiara's generation, they go and they research like that. Their research is checking people out on social media. Like, oh, that's a great idea. I don't even think about it. But that's so smart because you get a lot of insight and maybe a little smoke and mirrors at the same time. But...

0:13:29.0 MS: How are you in using social media as a form of engagement? Cause you mentioned Kiara. But what about your generation?

0:13:35.7 EC: Oh, I'm purely a voyeur at this point. My generation, I don't know, I think they're both part like old school and new school. Because I'm Gen X. So I feel like there's, I can only speak for me. I can't speak for my whole generation, but I'm more word of mouth experience. Like, who did you go to for this and what did you think about this? Oh, you think, oh, you like them? Okay, I'll check them out.

0:13:58.6 MS: But what about for your business?

0:14:00.4 EC: I don't do enough for my business. I have totally let that fall off. And guess what? I'm not getting those. I'm only getting the people who are word of mouth referrals. So here we are, we're in this time where I'm noticing a slowdown, the first time in a long time where it's making me sit up and I'm like, oh, dang, I need to get, I honestly feel like I need to get busy on social media again. And I feel a little crippled by it, if I'm being honest. So just my personal. But then I don't want people, I don't know. It's an interesting time.

0:14:30.5 MS: It is.

0:14:31.4 EC: And I don't want to deal with it. If I do, I only want to deal with it on one platform and I don't necessarily want to give tips on TikTok. I just want to put stuff on Instagram. But how do you make it? It's a lot.

0:14:44.4 MS: I mean, being on Instagram or TikTok or whatever platform of choice, that in and of itself could be a full time job.

0:14:51.2 EC: Yeah, I know. That's what's pausing me. That's what, I mean, I've looked into it. That's how I know about Meta. But I'm at a loss. Now, my other friend did tell me, Ella, you need to get on ChatGPT and type out how do I make a social media plan? And then it tells you and it gives you guides for like what to create, what it should look like. This is the message that you want to portray. Here's how your reels should go, here's the campaign post and what they should look like. I'm like, oh, that's a good idea.

0:15:18.3 MS: What do you think works best for building that trust with clients? Because we're talking about engaging either in person at say, an event or via social media, which for you, you've let that drop off.

0:15:31.6 EC: I don't know. I've never gotten anybody off of social media either. I've never gained a client because they saw me on social media. That's not true. I have one, but she heard me in a talk that I gave that was online. But yeah, so I don't really know. I'll keep you posted, I guess. For real, I'm going to try it. I'm going to try it.

0:15:51.7 MS: You're going to go to ChatGPT, create your plan.

0:15:54.3 EC: Listen, I'm going to create the plan, and then I have to go find, I have to go design it. But there's a lot of ways, I'll try it.

0:16:00.0 MS: Yeah. So bottom line, Square is saying landscape is changing. People are cutting back on their beauty. They're finding creative ways to adapt. If you haven't already, check out this full report. It's packed with insights. It can help you take your beauty business to the next level. Now, listeners, we want to hear from you. Share with us on social media through Instagram, Facebook or by emailing. Get connected@ascpskincare.com thank you for listening to ASCP Esty Talk and as always, for more information on this episode, or for ways to connect with Ella and myself, or to learn more about ASCP, check out the show notes.

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