Thriving Stylist Podcast: Best of #331 - The Pricing Crisis and How We Got Here

Release Date: December 23, 2024
Host: Britt Seva

Introduction

In the Thriving Stylist Podcast episode titled "The Pricing Crisis and How We Got Here," host Britt Seva delves deep into the current upheaval within the beauty industry. As the industry shifts from a stylist-centric to a client-centric market, Britt explores the factors contributing to this transformation and offers strategic advice for stylists navigating these challenging times.

The Great Divide: Industry Turning on Itself

Timestamp: [10:25]

Britt introduces the concept of "the great divide," a pivotal moment where the beauty industry begins to fracture. She notes, "We are deeply in the great divide" (10:25), highlighting how stylists and clients are increasingly at odds. This divide is evident in growing resistance, resentment, and pushback within the community, signaling a significant shift from the previously collaborative environment.

Artificial Post-Pandemic Demand Waning

Timestamp: [15:40]

Reflecting on the aftermath of the COVID-19 pandemic, Britt explains that the surge in demand for hairstyling services was largely artificial. "This artificial demand, that clientele boom is waning," she states (15:40), indicating that the extraordinary growth experienced from 2020 to mid-2023 was unsustainable. The departure of thousands of stylists during the pandemic left a surplus of clients seeking new salons, temporarily inflating demand that is now normalizing.

Evolution of Influencer Culture

Timestamp: [22:10]

Britt discusses the transformation of influencer culture within the industry. Previously, high follower counts on platforms like Instagram signified status and influence. However, this has shifted to a focus on genuine value and expertise. "It's no longer about popularity... It's who is delivering the highest perceived value," she explains (22:10). This evolution requires stylists to build authentic connections and demonstrate true expertise rather than merely accumulating followers.

The Charge Your Worth Movement and Its Consequences

Timestamp: [30:55]

The "Charge Your Worth" movement aimed to empower stylists to set appropriate pricing for their services. Britt critiques this movement, stating, "The value of anything is what a consumer is willing to pay" (30:55). She argues that many stylists misapplied this philosophy, resulting in arbitrary pricing that either overcharges or undercharges clients. This mispricing has led to client dissatisfaction and a damaged reputation for some stylists.

Client Backlash and Emotional-Based Pricing

Timestamp: [45:20]

Britt highlights the backlash from clients due to emotional-based pricing strategies. Many stylists implemented policies and pricing based on personal sentiments rather than solid business principles. "Clients are feeling the backlash," she observes (45:20). Examples include sticker-shocking price displays and public criticisms of clients, which have fostered resentment and eroded trust between stylists and their clientele.

Course Correction: Strategies to Overcome the Pricing Crisis

Timestamp: [60:35]

To address the pricing crisis, Britt offers actionable strategies for stylists:

1. Choose Confidence Over Arrogance

   • Quote: "Confidence emerges from a genuine belief in oneself... Arrogance, however, stems from insecurity" (60:35).
   • Emphasizing genuine self-assurance and empathy rather than inflated self-importance.

2. Price Based on Clients and Services, Not Trends

   • Develop pricing methods that align with the specific needs and preferences of your clientele rather than following industry fads.

3. Avoid Pricing Based on Competitors

   • Instead of mirroring other stylists' rates, use data-driven approaches to determine fair pricing tailored to your business.

4. Adopt Smart, Solid Business Practices

   • Focus on sustainable business strategies and continuous education to adapt to industry changes effectively.

Conclusion: Embracing a Heart-Centered Approach

Timestamp: [75:50]

Britt concludes by urging stylists to adopt a heart-centered approach, balancing strong business acumen with genuine care for clients. "Remember that you are doing good work with a human with a good heart on the flip side of every transaction," she advises (75:50). By fostering empathy and professionalism, stylists can rebuild trust and navigate the evolving landscape of the beauty industry successfully.

Key Takeaways

• Recognize the Shift: The industry has moved from a stylist-centric to a client-centric market, necessitating new business strategies.
• Authentic Influence Matters: Building genuine value and expertise is more important than accumulating social media followers.
• Strategic Pricing is Crucial: Avoid arbitrary pricing based on emotions or trends; instead, use data-driven methods tailored to your clientele.
• Emphasize Empathy and Professionalism: Foster strong, empathetic relationships with clients to rebuild trust and loyalty.
• Continuous Education and Adaptation: Stay informed and adapt to industry changes with solid business practices and ongoing learning.

Notable Quotes

• On the Great Divide: "We are deeply in the great divide." (10:25)
• On Artificial Demand: "This artificial demand, that clientele boom is waning." (15:40)
• On Influencer Culture: "It's no longer about popularity... It's who is delivering the highest perceived value." (22:10)
• On Charge Your Worth: "The value of anything is what a consumer is willing to pay." (30:55)
• On Confidence vs. Arrogance: "Confidence emerges from a genuine belief in oneself... Arrogance, however, stems from insecurity." (60:35)
• On Heart-Centered Approach: "Remember that you are doing good work with a human with a good heart on the flip side of every transaction." (75:50)

For more insights and strategies to thrive in the evolving beauty industry, listen to the full episode of the Thriving Stylist Podcast.