How To Help Your Business When the Economy Gets in the Way
Businesses everywhere are once again feeling the pinch of uncertainty thanks to the economic bumps that have been served up lately. Why is inflation happening and what can you do to ensure that your shop weathers the storm safely? Here are some tips that work for any business, bad economy be damned.
Communicate value
When someone is looking to make a purchase, his impetus to buy is often emotional, but when the economy is quavering and times are hard, he will want to back that emotional openness to purchase with logical facts that confirm the purchase makes sense, and is worth the money required to make it. For example, bringing in titanium, although it is more expensive, during a tight economic juncture might seem, at first glance, an odd choice, but by explaining to your customer that choosing to spend a little more up front will ensure that his piercing heals well and that his jewelry will be guaranteed for a lifetime against manufacturing defects, spending a little more upfront to ensure less expense down the road will be a clear best choice for your customer.
Explain your choices
If you are more expensive than your competition down the block because you pay a living wage to your employees and choose premium materials to safeguard the health and well-being of your clients, make it known. Customers who themselves may be cash-strapped wish their own employers were doing the same, and will, in most circumstances, choose to support your business for doing the right thing, even if it means sacrificing a few dollars up front. When some restaurants in NYC moved to a fair hourly wage and health insurance to compensate all their waitstaff rather than forcing them to rely on tips, those restaurants saw increases in their business, despite the higher plate prices, not decreases, because they were clear about what they were doing and why, and it resonated with the public.
Work smart
If part of your piercing rates cover the set-up of piercings, consider whether there are ways to make your set-up time quicker and less expensive, if for example, you had a day of the week dedicated to one type of piercing. For example, maybe it’s easier to transition from a nose piercing to a nose piercing rather than from nose to navel. Encourage all your nose customers to show up on a Wednesday for a slight discount or a free piece of jewelry to change out to, and amortize the cost of the discount by using the streamlined set-up time to fit in more customers.
Give back
When customers find themselves lacking in funds, they think even harder about where to spend their money. Often, people want to make their money go as far as it can, so having people show up with a canned good donation to get a free piece of jewelry with any piercing is a good way to pay it forward, and make your clients part of the good karma. For the free jewelry, choose anything that has been sitting in your case for more than 6 months and put it in a give to get zone. It’ll help you clear old inventory, and generate funds to keep your selection fresh so your customers come back even after the charity drive is over.
Be expense smart
Financial crises are often the best time to take a look under the hood of your business and check to see that everything is as it should be. Chances are, you may find things that are obsolete and costing you money. Have a subscription service for music for your shop that you don’t really need? Nix it. Haven’t shopped around for the best price on gloves lately? Prices have come down in the last few months since supply finally caught up with demand. Are there hours in the day when you don’t have clients coming in? Ask your staff to use them to help build your online presence, work your social media, or create marketing to help customers find you.
