6. DBP - Demand-Based Pricing
In the wake of what has been termed the "PMU Apocalypse" post-2023, many artists within the permanent makeup (PMU) industry have significantly adjusted their pricing strategies, moving towards Demand-Based Pricing (DBP). This shift reflects a more dynamic approach to pricing, allowing for fluctuations based on demand. This methodology is transparently communicated to clients, underscoring that even the rates of the most seasoned professionals can vary in response to market demand, and there's no need to obscure this fact from customers.
Strategic Explanation
The rationale behind adopting such a flexible pricing model is grounded in the diverse quality of services offered within the same category (e.g., powder brows, microblading, hairstrokes, lip blush) by different artists. This diversity presents a legitimate basis for certain artists to command higher service prices.
A vs. B Scenarios
To elucidate, consider a scenario where two artists, A and B, offer the same service but at different levels of quality and price. A compelling argument can be made for why Artist A, charging 25% more, provides better value. This justification typically revolves around differentiating factors such as superior pigments, tools, techniques, location, warranties, etc., that Artist A provides. The key here is ensuring these differentiators are perceivable and meaningful to the client, justifying the higher cost.
However, the situation becomes more complex when there's no discernible quality difference between Artists A and B, with the only variance being the price. We encounter two distinct dynamics if both deliver the same level of service with identical professionalism. These will be discussed in the following section, highlighting the intricacies of navigating pricing strategies in a highly competitive landscape without compromising on service quality or professional integrity.
Truth Always Wins
When an artist lowers their prices due to reduced demand, leading to potential vacancies and idle time, there's a genuine and transparent reason behind adjusting prices based on the current market demand. Acknowledging a demand-based pricing model and openly communicating about price fluctuations can offer a price advantage and underscore the artist's commitment to honesty.
In scenarios where competing artists provide services of comparable quality, and one opts for lower pricing based on rational, demand-driven analysis (akin to Uber's pricing model), the justification for maintaining higher prices becomes scrutinized. The defense for higher pricing might often be predicated on claims that don't hold up under objective evaluation. For instance, claims of utilizing superior European pigments, advanced needle cartridges, or more sophisticated pigmentation techniques may not stand true. In reality, top artists within a region tend to achieve a similar mastery level over their craft, and significant differences in equipment, supplies, or techniques are rare.
The sincere insight derived from this analysis is that professional artists who embrace demand-based pricing and maintain transparency in their pricing strategy, avoiding the fabrication of unfounded justifications for their rates, are better positioned to attract customers during periods of lower demand and general economic downturns. This approach fosters trust between the artist and potential clients and aligns with ethical business practices, ultimately benefiting the artist's reputation and customer base in the long term.