ASCP Esty Talk - Episode 315: Collaborate to Elevate: Growing Your Esthetics Business

Release Date: April 9, 2025
Hosts: Maggie Stasik (Program Director, ASCP) and Ella Crestman (Licensed Esthetician & Content Contributor)

1. Introduction to the Future of Beauty Report

The episode kicks off with Maggie introducing the Future of Beauty Report recently published by Square. This comprehensive report aggregates insights from thousands of beauty entrepreneurs and consumers worldwide, providing a detailed analysis of the current state and future projections of the beauty industry.

Maggie Stasik [01:06]:
"It's kind of like a crystal ball for the future of beauty that is."

Ella Crestman [01:33]:
"They're taking the products that they use... this is really cool."

2. Consumer Spending Trends in the Beauty Industry

A significant portion of the discussion centers around shifting consumer spending habits within the beauty sector. The report reveals that 51% of consumers have reduced their beauty expenditures. Despite this decline, beauty remains a priority, with consumers becoming more selective and mindful about their purchases.

Maggie Stasik [02:08]:
"Consumers have pulled back a little when it comes to beauty spending."

Ella Crestman [02:13]:
"I'm curious if this is because a square is a preferred like payment processing for a lot of professionals... or is it the sign of the times?"

The hosts delve into the implications of this trend, noting that while beauty spending remains resilient compared to other sectors like dining and retail, professionals still face financial pressures. A silver lining highlighted is the intent of beauty leaders to raise prices in the coming year to offset reduced consumer spending.

Ella Crestman [03:12]:
"Raising your prices isn't easy... people were still coming to you tipping extra because there was hope that there was going to be restoration."

3. Upselling and Diversifying Revenue Streams

To counteract decreased spending, Maggie and Ella discuss the importance of upselling and diversifying revenue streams. The report indicates that one-third of beauty businesses are expanding their offerings by introducing new services or products and embracing membership models.

Maggie Stasik [04:53]:
"The report found that one third of beauty businesses are adding new services or products and some are even offering memberships."

Ella shares personal experiences and hesitations regarding membership programs, pondering their viability and the balance between predictable revenue and client flexibility.

Ella Crestman [05:27]:
"I would consider a membership. It's a good idea."

Maggie highlights that 85% of beauty leaders report a positive return on investment from memberships or subscriptions, underscoring their potential benefits for businesses of all sizes.

Maggie Stasik [06:56]:
"85% of beauty leaders say memberships or subscriptions gives them a positive return on investment."

4. Membership Models in Esthetics Businesses

The conversation delves deeper into the mechanics and psychological aspects of membership models. Ella contemplates the operational challenges, such as managing client availability and ensuring consistent service delivery, while Maggie emphasizes the financial predictability memberships can bring.

Ella Crestman [07:27]:
"What if they couldn't get in because of their availability?... It's a lot."

Maggie Stasik [07:48]:
"It could be a game changer in making revenue more predictable."

5. Payment Options: Buy Now, Pay Later

Maggie introduces Buy Now, Pay Later (BNPL) services, noting their rising popularity with 80% of beauty businesses adopting them. These flexible payment options can make higher-priced packages more accessible to clients, thereby boosting sales.

Maggie Stasik [08:45]:
"Buy now, pay later services... being embraced by 80% of beauty businesses."

Ella sees the potential in BNPL, especially for large-ticket services like laser treatments or comprehensive packages.

Ella Crestman [09:01]:
"This would be really good to implement especially if you have those packages."

They discuss pricing strategies, suggesting businesses assess their fees and adjust prices accordingly to accommodate BNPL offerings without compromising profit margins.

6. Embracing Technology in Beauty Businesses

The hosts explore the integration of technology in esthetic practices. Over one-third of beauty professionals are utilizing tech solutions for automating scheduling, marketing, staff management, and tracking rewards. Maggie encourages even those hesitant about technology to start small, such as implementing automated appointment booking systems.

Maggie Stasik [10:03]:
"Automating, scheduling, marketing, staff management and tracking rewards... over one third of beauty pros already are using tech."

Ella acknowledges the advancements in platforms like Square, which now offer comprehensive solutions beyond payment processing, facilitating easier business operations.

Ella Crestman [10:56]:
"Six years ago, Square was just payment processing... now they can add different parts of that, which is amazing."

7. Social Media Engagement Strategies

A substantial segment is dedicated to social media's role in client engagement and business growth. Maggie contrasts traditional in-person client interactions with the expansive reach of platforms like Instagram and TikTok. They discuss how social media allows estheticians to share tutorials, tips, and educational content, fostering deeper connections with both existing and potential clients.

Maggie Stasik [11:22]:
"Social media today is how you are still engaging and connecting with your clients."

Ella reflects on her personal experiences, admitting limited success in acquiring clients via social media but acknowledges its potential. She contemplates leveraging tools like ChatGPT to develop effective social media strategies.

Ella Crestman [15:18]:
"Ella, you need to get on ChatGPT and type out how do I make a social media plan... that's a good idea."

Maggie emphasizes the necessity of adopting social media to stay competitive, while Ella shares her reservations about managing multiple platforms and the overwhelming nature of content creation.

8. Conclusion and Final Thoughts

Maggie wraps up the discussion by reiterating the key insights from the Square report: the evolving landscape of consumer spending in beauty and the innovative strategies businesses are employing to adapt. She encourages listeners to explore the full report for more in-depth information and invites them to engage with ASCP through various channels.

Maggie Stasik [16:00]:
"Square is saying landscape is changing. People are cutting back on their beauty. They're finding creative ways to adapt."

Notable Quotes

• Maggie Stasik [01:06]:
  "It's kind of like a crystal ball for the future of beauty that is."

• Ella Crestman [03:12]:
  "Raising your prices isn't easy... people were still coming to you tipping extra because there was hope that there was going to be restoration."

• Maggie Stasik [06:56]:
  "85% of beauty leaders say memberships or subscriptions gives them a positive return on investment."

Key Takeaways

• Consumer Spending: While overall beauty spending has decreased for many, it remains a priority, urging professionals to be more strategic and selective with their offerings.

• Revenue Diversification: Upselling, introducing new services/products, and implementing membership models can provide financial stability and growth.

• Flexible Payment Options: BNPL services can make higher-priced services more accessible, potentially increasing sales volumes.

• Technology Adoption: Leveraging tech solutions can streamline operations, enhance client experiences, and offer competitive advantages.

• Social Media Engagement: Active and strategic use of social media platforms is crucial for brand visibility, client engagement, and business expansion.

For more insights and information on this episode, visit the ASCP Esty Talk show notes or connect with Maggie and Ella on Instagram and Facebook.