Thriving Stylist Podcast - Episode #373: "The Great Divide - Sh*t is Getting Real For Stylists & Owners"

Host: Britt Seva
Release Date: February 17, 2025

Introduction

In Episode #373 of the Thriving Stylist Podcast, host Britt Seva delves into a critical and timely issue affecting the beauty industry: "The Great Divide." This episode, titled "Sh*t is Getting Real For Stylists & Owners," addresses the stark disparities emerging within the hairstyling community, where a small fraction of stylists are experiencing unprecedented success while the majority grapple with mounting challenges.

Defining the Great Divide

Britt Seva introduces the concept of the Great Divide, a phenomenon where the hairstyling industry is fragmenting into winners and losers. This divide isn't merely about profitability but reflects deeper shifts in consumer behavior, market dynamics, and business strategies post-COVID-19.

[12:45] Britt Seva:
"The Great Divide is actually the result of the tsunami that was COVID-19. It's the aftermath where a portion of our industry is about to see massive success, while a larger portion feels the ground beneath them shake."

Historical Context: The COVID-19 Tsunami

Using a vivid metaphor, Britt likens the COVID-19 pandemic to a tsunami, initiating a chain of events that reshaped the beauty industry:

1. The Earthquake: COVID-19 outbreak causing immediate disruptions.
2. Ocean Recedes: Salons shutdown, leading to decreased demand.
3. Tsunami Waves: Surge of clientele from 2021 to 2023, initially boosting business for those who adapted.
4. New Normal: Post-2023 era where the industry cannot revert to pre-pandemic norms.

[10:30] Britt Seva:
"If you think of COVID-19 as an earthquake, the ocean receding represents when salons shut down. The waves flooding back are the clients who needed services between 2021 and 2023."

Current State: The 20% and the 70%

Britt outlines a clear dichotomy within the industry:

• Top 20% (200,000 stylists):
  These stylists have successfully adapted, leveraging advanced business skills and strategic marketing to thrive. They are seeing revenue spikes, often exceeding previous earnings.

  [25:15] Britt Seva:
  "20% of the industry will build a tremendous business in the gap. If you can figure this gap out, you can be a part of this."

• Remaining 70%:
  A significant majority are struggling due to factors like increased competition, decreased demand, and ineffective business strategies. Many are resorting to unsustainable practices such as price undercutting and discounting, exacerbating the divide.

  [35:50] Britt Seva:
  "Competition is getting stiffer and demand is decreasing. We're seeing that coast to coast. So some clients are choosing to just do their hair at home..."

Consumer Behavior Shifts

The pandemic-induced changes have led to a value-based economy where consumers are more discerning about where they spend their money. Britt emphasizes that perceived value now dictates a client's willingness to pay for services.

[40:20] Britt Seva:
"We're living in a value-based economy and they just simply won't do it. If the perception isn't there, no one's going to pay it."

Key Consumer Trends:

• Under Consumption: Reduced frequency of salon visits and selective spending on high-ticket services.
• Brand Loyalty Shakeup: Increased brand switching, especially among Gen Z and Millennials seeking value and quality.
• Economic Pressures: Inflation and economic downturns influencing discretionary spending.

Client Frustrations

Britt identifies several pain points causing client dissatisfaction:

• Unjustified Price Increases: Raises based on rising costs without adding perceived value.

  [50:05] Britt Seva:
  "Raising prices because of cost of goods increases was the most unrelatable statement because everybody's like, yes, everything has gotten more expensive."

• Hourly Pricing Models: Clients feeling dissatisfied with paying for time rather than results.

• Complex Application Processes: Overly stringent client onboarding making clients feel unwelcome.

• Strict Cancellation Policies: Viewed as penalizing and inflexible.

• Mediocre Guest Experiences: Resulting from burnout and lackluster service due to strained resources.

Stylist Frustrations

On the flip side, stylists are battling:

• Increased Competition: More stylists vying for a shrinking pool of clients.
• Decreased Demand: Clients pulling back on spending.
• Operational Challenges: High costs of goods, staffing issues, and the inability to maintain profitability.
• Burnout: From previous surges in demand and ongoing operational pressures.

[1:15:30] Britt Seva:
"We've lost about 10% of our industry during that time. Knowing that 10% of our industry was no longer taking clients, those clients needed to find a place to go."

The Three-Way Divide: Clients vs. Stylists vs. Stylists

Britt elaborates on a three-way divide, highlighting tensions between:

1. Clients vs. Stylists: Clients perceive stylists as overpriced or entitled, while stylists feel undervalued and constrained by rigid business structures.
2. Stylists vs. Stylists: Increased competition fosters an environment of jealousy, misinformation, and success shaming, where thriving stylists are quietly successful, and struggling ones are vocal about their frustrations.

[1:25:45] Britt Seva:
"Nobody likes to tear down women more than other women. We have got to lay down our swords if we're going to make it through this."

Path Forward: Adapting Business Strategies

To navigate the Great Divide, Britt advocates for a strategic pivot focusing on:

• Enhancing Perceived Value: Beyond quality cuts and colors, offering holistic and meaningful experiences.
• Effective Marketing: Utilizing modern, relatable marketing strategies to connect with a value-conscious clientele.
• Business Skills Development: Emphasizing the importance of comprehensive business education to complement hairstyling expertise.
• Community Building: Encouraging collaboration over competition to foster a supportive industry environment.

[1:30:00] Britt Seva:
"If you're ready to quit just working in your business and start working on it, join us here where we share real success stories from real stylists."

Conclusion

Britt Seva wraps up the episode with a call to action for stylists and salon owners to embrace change, enhance their business acumen, and adopt strategic marketing practices to thrive amidst the ongoing challenges. She underscores the importance of transparency, community support, and continuous learning to bridge the Great Divide and secure a prosperous future in the beauty industry.

[1:40:10] Britt Seva:
"Change is really hard and especially we've been running a marathon for five years and then so for me to show up and be like, okay, now it's time to pivot your strategy. It feels like a gut punch."

Britt encourages listeners to engage with the content, leave feedback, and stay tuned for upcoming episodes that will provide further insights and strategies to navigate these turbulent times.

Key Takeaways

• The Great Divide signifies a significant split in the hairstyling industry between thriving stylists and those struggling.
• COVID-19's Impact: Acted as a catalyst, leading to unprecedented changes in consumer behavior and industry dynamics.
• Adapting is Crucial: Success lies in embracing new business models, enhancing perceived value, and implementing effective marketing strategies.
• Community Over Competition: Fostering a supportive environment can mitigate internal conflicts and promote collective growth.
• Continuous Learning: Leveraging resources like the Thriving Stylist Podcast can equip stylists with the necessary tools to succeed.

Stay Connected:
For more insights and actionable strategies, tune into the Thriving Stylist Podcast and join Britt Seva on the journey to creating a wealthy and sustainable career in hairstyling.