Stop Dropping Your Prices | SMH Branding

In the beauty world there is tons of competition out there in the skin care, makeup and haircare space. In fact, analysis suggest that in 2022 the beauty industry is projected to increase by 10%. That is a lot of choices for your potential customer to make.

When you are trying to acquire new customers most business owners do everything possible in order to get the sale. They may change their packaging, adjust your website layout and post more on social media. Some may go as far as dropping their prices. Although rebranding is always an option for a new  beauty business please never drop your product price!

Building a beauty brand can be a costly endeavor and marketing nowadays is plain old expensive. You will need the additional income to get eyes on your brand. By offering consistent discounts or sales you are cutting your capital off at its feet. Remember the goal is to build a beauty empire and  not just sale products on the side! You are going to need that additional income to take you to the next level to gain financial freedom.

Instead of offering a sale to increase your customer base consider these tips below:

Rethink Your Branding

Keep in mind that constant discounts "cheapen" your brand. And let's be honest... no one wants to look cheap. Think about how you shop at Wal-Mart vs. Target. Target creates an experience for their customers. You go in only planning to spend $30 and leave the store spending at least $100 or more. There brand is not based on a affordability its based on creating an experience for their customers. I often feel like I should dress up a little before I make my Target runs. But "Wally World" aka Wal-Mart you see all types of people in there, dressed all kinds of ways. That is because there business motto is based on affordability.

Never forget the law of attraction. You attract what you present. So when are you are thinking about your branding consider your idea customer base. Do you want a customer base that needs a sale to spend money in your store? Or do you want a customer base that only plans to spend $30 and they leave your website spending 3x more?

Give The Illusion Of A Sale 

Consider sales before you finalize your product price. You need to give the illusion that you are offering a discount but your actually selling your product at your target rate. For example, say if you are selling a makeup brush that cost you $2.50 a brush. Your goal should be al least a 75% profit margin. That would mean that you will need to sale your makeup brush for at least $10.00. When list your product for sale you need to mark it up for at least 40% more than your bottom line price. So instead of selling your makeup brushes for $10.00 you should list them for $14.00 or more. So when you promote a sale for 30% off the makeup brushes will only be marked down to $9.80. Which keep you at about that 75% profit margin. 

Create A Selling Product Description

Why should someone purchase a product from your online store? The answer should never be because I am running a sale or my products are inexpensive. Remember when you are selling products online people can not touch, feel or smell anything. So you need to create an experience for your customers on your website. This means you need to sale them a dream.

Now what I mean by that is you need to be very descriptive with your product details. No that does not mean explaining all the features of the product. What it does means is that you should explain to the customer what this product can do for them or how this product will make their life better. You should be almost writing a story in your product description. For example:

Don't Say This...

Natural curl definer made with panthenol, rice protein and sweet almond oil. All of our products are alcohol-free and plant based.

Say This Instead...

A curl defining gel that interacts with each individual hair strand to add body, control and shine. Formulated with our deeply nourishing blend of pure botanicals. Panthenol and rice protein provide extra conditioning, while pure marshmallow root delivers unprecedented slip, and Sweet Almond adds shine, leaving curls healthier, defined and more enhanced. It is perfect for your wash & go's, twist-outs, up-do’s, ponytails, roller sets and  more. Our alcohol-free, botanical curl formula encourages instant curl formation, reduces frizz, adds instant slip and softness for your ideal style! 

In Conclusion

Stop discounting your prices. Remember if you have to discount your price in order to obtain new customers you have not differentiated your brand from the sea of other look alike businesses. This means you need to audit your business plan. 
Signup with SMH Branding to audit your beauty business plan for free by clicking here.

 

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