4. Pricing and Sales Strategies
How you handle pricing and sales can significantly impact your services' perceived trust and competence. There are several factors to consider here, such as list prices, discounting, and exceptions. Research involving 155 Powder Brows and microblading artists, especially during and after the pandemic years, revealed intriguing insights into pricing strategies for attracting new clients. Specifically, artists with a higher "official" list price, who then offer significant discounts, tend to attract more clients than those with a lower list price.
An Example to Illustrate the Point
For instance, let's say an artist has a list price of $199 for a procedure but offers a special deal at $99 for new models. Surprisingly, she will likely get more sign-ups than if her list price were $79, even though the discounted price in the second scenario is 20% higher!
The Perception of Value
Based on the data, a lower net price was 4.2 times less likely to be associated with lower quality, provided the higher original price was effectively communicated to clients. The lesson here is straightforward: while offering a low net price as part of a special deal may not harm your reputation, setting a low list price could be detrimental to how you're perceived in terms of professionalism and trustworthiness.
Use Downselling to Build Trust
One major issue that erodes trust is the perception of unnecessary upselling. In fact, 78% of clients associate feeling "sold to" with a lack of professionalism and a decreased trust toward the artist. What does this mean? If the artist starts recommending products and services that aren't essential to the client, she risks appearing overly sales-focused, which can negatively impact trust.
However, this dynamic can be flipped to your advantage—to maintain and boost trust. How? By practicing "downselling." Instead of pushing for more expensive services or additional products, an artist can build long-term revenue by questioning whether the client truly needs the suggested add-ons or services.
For example, the artist might recommend against extra retouching or additional services if these won't significantly improve the end results. Similarly, the artist could advise the client on which aspects of a proposed package can be deferred or eliminated, thereby reducing the immediate financial burden on the client.
Leverage Discounts
Another effective strategy involves combining different promotional elements like gift cards, discounts, and campaign codes to offer a lower overall price. This tactic is most effective when the artist refers to her brand as "we" or "they," creating a sense of collective responsibility. If she refers to herself singularly as "I," this lessens the impact of the strategy. It becomes much more compelling when the artist says something like, "Let's see how we can make this work for you financially," thereby aligning herself with the client in seeking the best possible terms.
Minimize Unpleasant Surprises to Maintain Trust
It's crucial for the artist to manage expectations effectively to avoid any negative surprises for the client. A significant 63% of clients reported experiencing a sudden decline in trust when faced with unexpected elements. These could range from undergoing additional steps in the procedure, encountering an unexpected price hike, or engaging in other unplanned activities.
Another critical point involves the time allocated for the procedure and the clarity around the duration of its different phases. So, what's the practical takeaway from all this? The artist should give the client as much information as possible about what to expect during the procedure. This could involve sending detailed information about the procedure and aftercare to the client's email in advance. Reviewing everything before the procedure starts is beneficial, even if the client insists that she "already knows everything."
Furthermore, it's a wise strategy to allocate a little extra time for each appointment, particularly when the schedule isn't tightly packed. This creates a buffer to accommodate any unforeseen complexities, helping to mitigate the risk of negative surprises that could undermine the client's trust.
