Ep 315 – Collaborate to Elevate: Growing Your Esthetics Business

Summary

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)

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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."

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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."

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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."

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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."

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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.

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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."

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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.

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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."

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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."

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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.

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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.

Transcript

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[Maggie Stasik]

Hello and welcome to ASCP's Estee Talk. I'm your co host Maggie Stasik and ASCP's program director.

[Ella Crestman]

I'm Ella Crestman, licensed esthetician, ingredient junkie and content contributor for Associated Skincare Professionals.

[Maggie Stasik]

Ella, have you seen the Future of Beauty report recently published by Square?

[Ella Crestman]

No, but I'm excited.

[Maggie Stasik]

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 that is.

[Ella Crestman]

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 like items listed in a certain way, but they're taking the products that they use. The company. Oh, this is really cool.

[Maggie Stasik]

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.

[Ella Crestman]

I've seen it. I've seen it firsthand. I believe it. It's interesting.

[Maggie Stasik]

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.

[Ella Crestman]

I'm curious if this is because a square is a preferred like 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?

[Maggie Stasik]

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 do you, what are your thoughts on that? Because you said you're, you're feeling it, feeling it.

[Ella Crestman]

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 going to be restoration and I think there was. But then I think as time has gone, and I don't mean to sound wa wa wa about this, but as time has gone on there it's, I don't know the hope is 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 got to see what's going to happen here.

[Maggie Stasik]

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 going to need their monthly facial, they're going to need their brow waxed. They may just be stretching out the appointments a little bit and their products.

[Ella Crestman]

Paring down like give me the best serum, that's going to 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, let's talk about.

[Maggie Stasik]

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.

[Ella Crestman]

What do you think about memberships? Because I think it. Are you involved in any membership based programs? No, I was involved. Well, my gym can be considered a membership. Yeah, I pay but I don't go.

[Maggie Stasik]

But also, but for health and beauty. No memberships.

[Ella Crestman]

No, not really. No. But Fabletics I was. Or that athletic company. Yeah, it made it really. Let's 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, ooh, 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.

[Maggie Stasik]

Would you ever consider membership for your business?

[Ella Crestman]

I would, I think I would. I think the only thing that would give me 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, ugh, no money today for that person. But if it was a membership model, then it would just be coming in and playing and you would have a lot more, I guess, a lot more freedom. Yeah, I would actually, I would consider a membership. It's a good idea.

[Maggie Stasik]

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.

[Ella Crestman]

Oh wow. I believe it. Yeah.

[Maggie Stasik]

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, 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.

[Ella Crestman]

Yeah. Or does that mean that like 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?

[Maggie Stasik]

Yeah, true.

[Ella Crestman]

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

[Maggie Stasik]

Yeah. Have you seen interesting ways where other beauty pros are offering or doing this?

[Ella Crestman]

I haven't.

[Maggie Stasik]

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.

[Ella Crestman]

Yeah, very interesting. Hold that thought. We'll be right back.

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[Ella Crestman]

Okay, here we go. Let's get back to the podcast.

[Maggie Stasik]

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.

[Ella Crestman]

This would be really good to implement especially if you have those packages. I'm thinking of Laser for example.

[Maggie Stasik]

Oh, brilliant.

[Ella Crestman]

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.

[Maggie Stasik]

Yeah.

[Ella Crestman]

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

[Maggie Stasik]

What do you think about rewards programs?

[Ella Crestman]

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 you know, again, I take a, I take advantage of those sometimes. Like I have like. Remember back in the day when they would stamp your card?

[Maggie Stasik]

Yeah.

[Ella Crestman]

I have so many cards with one stamp on em for the same place. Cause I would forget my card or whatever. But if I go and type in my phone number and like they have that where I get my nails done, they have it where I get my coffee and they track it for me. Yeah, I'm gonna opt in.

[Maggie Stasik]

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 their age or like.

[Ella Crestman]

What they think their capabilities are.

[Maggie Stasik]

Yeah.

[Ella Crestman]

Accessibility to some of these.

[Maggie Stasik]

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.

[Ella Crestman]

Like with meta.

[Maggie Stasik]

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.

[Ella Crestman]

Oh, for sure. And plus 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, you know, 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.

[Maggie Stasik]

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. Yes, 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.

[Ella Crestman]

I think, honestly I just recently watched a documentary on this YouTuber and the 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, they're connecting with you and gaining not just perspective but appreciation. This is interesting.

[Maggie Stasik]

That is interesting because back in the day when I was actively taking clients, how I connected was like an in person event, you know, 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.

[Ella Crestman]

Inadvertently.

[Maggie Stasik]

Inadvertently.

[Ella Crestman]

But one person is engaging with many where they, they're watching you talk right at an event, but it's just online.

[Maggie Stasik]

And it's maybe clients you don't even know you have yet.

[Ella Crestman]

Yeah, a lot of them, I tell you, like Kiera's generation, they go and they, they, 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. Cause you get a lot of insight and maybe a little smoke and mirrors at the same time, but.

[Maggie Stasik]

So yeah, how are you in using social media as a form of engagement? Cause you mentioned Kira. But what about your generation?

[Ella Crestman]

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. Yeah. 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.

[Maggie Stasik]

But what about for your business?

[Ella Crestman]

I don't do enough for my business. I have totally let that fall off. And guess what? I'm not getting those. I. I'm only getting the people who are word of mouth referrals. So here we are, right. 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.

[Maggie Stasik]

It is.

[Ella Crestman]

And I don't want to deal with it like 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 like. It's like a lot. It's a lot.

[Maggie Stasik]

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

[Ella Crestman]

Yeah, I know. That's what's pausing me. That's what that's. 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.

[Maggie Stasik]

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, you know, for you, you've let that drop off.

[Ella Crestman]

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, in a talk that I gave that was online. But yeah, so I don't really know. I'll keep you posted. I guess it's real. I'm going to try it. I'm going to try it.

[Maggie Stasik]

You're going to go to ChatGPT, create your plan.

[Ella Crestman]

Listen, I'm going to create the plan and then I have to go find, I have to go design it. Well, there's a lot of ways. I'll try it.

[Maggie Stasik]

Yeah. So bottom line, Square is saying landscape is changing. People are cutting back on their beauty. Right. 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 [e-mail] thank you for listening to ASCP SDTalk and as always, for more information on this episode, or for ways to connect with Ella and myself, or to learn more about astp, check out the show notes.

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