Is Your Business Slower Than Usual?
Why are we seeing this change with our guests from, you know, we were all kind of seeing this overflow of guests readying to come in to four years later, guests are slowing down their services. From, you know, lots of spending to more cancellations. Is it an economic downturn?
Are we experiencing a recession? Welcome to the Spa Business Building Podcast, your go-to destination for turning your passion as a beauty or wellness professional into a successful and profitable business. I'm Tiffany, your host.
I'm a mom, wife, licensed esthetician, and massage therapist, enthusiast of all things business building. Not too long ago, I took a bold step into entrepreneurship, embracing the roles as a wife and mother of two while venturing into the spa industry as a solo practitioner. Armed with nearly two decades of expertise as a licensed esthetician and massage therapist, my passion for the spa industry fueled my determination to succeed despite having zero business experience and no client base.
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Your thriving business awaits. Welcome back to the Spa Business Building Podcast. I'm Tiffany, your host, and I have a question for you before we dive into this episode.
Does it feel slower than usual in our industry right now? Are you noticing more no shows and cancellations in your business? And maybe you're noticing that guests are pushing out their appointments longer than they usually do.
Well, in today's episode, I'm touching on my thoughts on our slowdown in the beauty and wellness industry right now. So let's dig in. So I've been seeing quite a few posts in Facebook groups that I'm in about service providers who are experiencing slower than usual months and more cancellations than usual.
And that prompted me to kind of talk on this subject and give my thoughts. So I'm also seeing that many service providers are considering closing up shop because business is so slow for them right now. And honestly, this is just heartbreaking to hear when you are seeing fellow service providers who are just struggling in their businesses and they're not sure what to do.
They're asking how they can earn extra income outside of their business instead of doubling down in their business to maybe learn new strategies to keep their business going and elevate them in a different way. So I want to take a walk back to 2020 when we were all thrown into a lockdown due to COVID. So my business was in lockdown for about three months, and when we were finally able to open again, people were so excited to feel some sort of normalcy.
And even though we were still wearing masks, being able to regain that human connection, and people couldn't wait to get back to receiving their services monthly, whether that's nails, massage, getting their hair done. They wanted that human touch. They needed relaxation and pampering, and they were happy to be spending their money and showing support for small businesses.
So I know that my business was full to the brim. I was booked out in advance at least 90 days. And which, to be honest, that's pretty normal for me, and my wait list is usually pretty long as well.
But it really kind of spiked during that reopen in COVID. So people were calling and emailing daily. They were sending messages because they wanted to get in and receive massage services.
And I know that a lot of other massage providers were not ready to open. They just weren't ready, and there was kind of a shortage of service providers in my area. So I think that being that I was still working gave me a boost of clients.
So now let's move forward to 2021 through 2023. We saw an influx in service providers who were ready to go out on their own, and most employers were having a hard time finding employees. But in 2023, service providers were starting to notice a change in customer habits.
There were a lot more no-shows, cancellations, and guests that wanted to stretch their services out. Guest spending habits were starting to change, and service providers were starting to experience that slower than usual months. And they weren't reaching their sales goals, and were starting to worry about covering their overhead and paying themselves.
So I want to know if this sounds familiar, if this sounds like what you've experienced, or if you know a lot of fellow beauty and wellness business owners who experience the same thing. Now, why are we seeing this change with our guests from, you know, we were all kind of seeing this overflow of guests ready to come in to four years later, guests are slowing down their services, from, you know, lots of spending to more cancellations? Is it an economic downturn?
Are we experiencing a recession? Now, I did some research, and the economy isn't technically in a recession. There has been a slowdown, and I'm sure you've all noticed the cost of living, gas is higher, groceries are higher, interest rates are higher.
They have gone down slightly, but people are still spending money. And according to the Bureau of Economic Analysis, the economy grew at a rate of 3.3% in the last quarter of 2023. So people were out spending more money during the holiday season.
So if the economy has grown by 3.3% in that last quarter, why does it feel like the beauty and wellness industry is slowing down? And here's what I think is going on. I think there are three things that could be contributing to the slowdown.
One, I think that there may be a decrease in the perceived value of services, beauty and wellness services. Two, I think that there may be a lack of professionalism among the service providers. And three, I think that service providers might not be attracting their right clients.
So let me break this down for you. People are spending money. However, I do think that with the economic uncertainty, people are being more picky about how they are spending their money.
So the things that were important to them several years ago aren't as important now. And people are just wanting to save a little bit more, and they're not spending in other areas. They have different values in their life.
So I think that they, that uncertainty has created a change in spending habits. So the importance of beauty in self-care may be pushed aside by consumers, and I think that it may be due to a decrease in the perceived value. They aren't seeing the value in that service or the value in themselves to receive this service.
But why would the value of self-care all of a sudden decrease? I don't think that it's necessarily decreased for everyone. I myself and the other service providers who are in my building, I think that they, they're still going strong and steady, and there are a lot of other service providers who are still experiencing growth and stability in their businesses.
And here's why I think that is. I think that we have kept the same level of perceived value for our guests, or we have continuously elevated that value year over year. So for those of you who are seeing a decline in your guests, maybe you're getting more no shows and cancellations.
Could there be something else going on than just an economy that's slowing? Do your clients see the value of your services, and have you elevated the customer experience to earn their trust and loyalty? Are your services lacking in consistency and results?
I think these are all really good questions that you should ask yourself and kind of just sit back and take a look at what could be going on in your business that your clients are canceling, pushing their services out, or not showing up to their appointments. Now, the second reasoning that I had touched on was a lack of professionalism. And I'm going to take this back to the beginning when I had said that there was an influx in service providers who wanted to go solo in about late 2020, through 2023.
And this isn't for everyone, but I have noticed a few of this happening in some groups. And I think that it could be a lack of professionalism. When your services are maybe lacking consistency in results, or maybe your clients aren't returning because they're experiencing some levels of unprofessionalism from their service providers.
So if you're showing up late to your scheduled services or constantly canceling or having to move around your appointments, if you're showing up to your services like you've just rolled out of bed and you're not putting that level of professionalism behind your experiences with your clients, they are noticing this. And the reason that I am touching it on the fact that so many people went out on their own, I think in that time when people were kind of just uncertain and they wanted to take control of their lives and continue to make money, they thought now is the best time to go out on their own, but they weren't quite ready to go out on their own. Or maybe there just weren't any places of employment because so many places just weren't ready to open, they had closed, so they needed to continue to make money, so they went out on their own, but they weren't quite ready to go out on their own.
They hadn't learned the skills, and trying to learn how to manage your business on top of perfecting your skills can be really difficult. And I think that sometimes service providers get this kind of mindset like, I'm the boss. I'm going to...
which is exactly what you want when you go out on your own. You are the boss, and you want to be able to be creative and have that freedom in your scheduling. However, you still have to remain professional.
Cancelling on your clients and moving around your clients because it is better for you isn't always a professional way. And trust me, I have had to meek... I've had to move around appointments plenty of times due to sick children, things come up.
However, I usually back that up with some sort of free upgrade or I try to fit them in as soon as I can and kind of still try to elevate that experience for them because it's really disappointing when your service provider keeps canceling. It's okay if it happens every once in a while because it will happen. I mean, it's life.
Life happens. And as we are understanding for our clients, our clients are usually pretty understanding for us, but when it is happening over and over and over, and you're showing unprofessionalism in so many other ways, that reflects to your client. They notice that, and that can really keep them from wanting to come back if they do not see you in a professional manner.
So my suggestion there is to show up as the person that you want to be known for. Do you want to be seen as a professional and the expert in your industry? In my opinion, you should act and look the part.
So that means being on time, arriving early, ready to go, and looking the part. And it doesn't mean, I mean, I dress slightly casual. I wear leggings and a black top.
Every day that I work, I still need some sort of comfort and workability in my attire as a massage therapist, but I still show up put together and well-groomed, and I don't look like I just rolled out of bed. So the third reason that I had touched on was that you could be attracting the wrong client base. So if you aren't sure who your client base is, then this is the problem.
If you're not sure who you're talking to or who you're trying to attract and you're just trying to attract anyone and everyone, then you're attracting the wrong people, the people who aren't valuing your services because you've maybe deeply, deeply discounted your services to try to bring clients in. And they just want that price point, but they don't really value you or your services, and they're not coming back because the next time they're not getting that deep discount and they're just hopping around from discount to discount. That's just an example, but maybe it's someone who you're an expert in blonding and this person is coming in for another service and they didn't really get what they thought they wanted because they just went to the wrong person.
And that's not always your fault, but if you know who you're speaking to, then you can market to that person. So part of the problem could be that you've gotten someone in your treatment room and they actually weren't the right customer for you, so then they just didn't come back. So what can we do to combat these maybe three mistakes that we're making?
I think that elevating the perceived value for your guest means bringing in services that make them want to come back for more. Are there little touches that you can add to your services to add value that make your guests feel pampered and appreciated? Are you building that relationship with your guests, making them feel valued and important that they want to come back, they feel excited to come in, they know exactly what they can expect from you, and they're referring their friends and family to see you.
They really value what you are bringing into the services and the treatment. I also think that showing up in a professional way, show up as an expert. If you want your guests to take you seriously, if you want them to respect your boundaries and policies and respect you and your business, you need to show up as a professional.
I also think that identifying your ideal client, knowing exactly who your ideal client is, makes attracting those clients so much easier. Because when you know who your ideal client is, you know what problems they want solved and the services that they are looking for and the products that they will buy. So that is it for today's episode, my friend.
I would love to continue this conversation. You can head on over to my free Facebook group, the Spa Business Building Community. I will link that in the show notes.
But let me know your thoughts, and if you have anything to add to this episode. If you're enjoying the Spa Business Building Podcast, please subscribe, leave a review, and share it with your fellow Spa Business Besties. Until next time, stay inspired, stay fabulous, and happy business building.
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