“Out of the frying pan and into the fire.” “If it’s not one thing, it’s another.” “Here we go again.” These phrases and old sayings seem to be popping up more than anyone wants these days – especially in local businesses. Are we in for tough times again?
Looking back, 2020 was harder than we ever thought it would be. The effects of COVID lasted much longer than anyone could imagine; but when we came out of government and/or self-imposed lockdowns, things seemed to brighten a bit. The economy began to rebound, shoppers came back out into the daylight and the American public began to breathe a collective sigh of relief. Yet, it’s now two years later, and “here we go again.”
Everyone is whispering the “R” word…recession. At the time of this writing, inflation is at 9.1%. Worker shortages, supply chain issues and the inability to get some computer chips is causing trouble for a large percentage of industries. All of that trickles down to the consumer who is either scared or unable to buy anything other than necessities. When times get hard, it’s not necessarily just the luxury goods that take a hit but anything outside of “the basics.” For example, the kids need new jeans for school. That’s a basic necessity. Mom doesn’t necessarily feel she “needs” another blouse. Her wardrobe can last another season. And sales? They don’t always matter if you’ve decide you need to tighten down on the budget.
A few years ago, the term “lipstick index” was coined by Leonard Lauder, chairman of the board of Estee Lauder. He used it to describe the increased sales of cosmetics during the early 2000s recession. He claimed that sales of lipstick could be used as an economic indicator as the sales actually went up during times of economic crisis. Women used it as a substitute for more expensive purchases like purses, etc.
While that sounds crazy or chauvinistic or whatever you’re thinking right now…let me just say that as a woman – it’s totally true. I’ve found myself in Walmart or Target or Ulta or any one of a dozen stores before picking up a “necessity” when I decided I just wanted to do something for me. Something small. Something that wouldn’t upset the budget. Something that was useful, but also a tiny luxury. I reached for a new lipstick. Even when we were all wearing masks…I wanted a new lipstick.
Okay, so you’re saying to yourself…I don’t SELL lipstick; what good is that to me? Ah…but lipstick doesn’t necessarily have to be “lipstick.” I grabbed lipstick because I was in a place that sold lipstick. My grandmother used to call that a “happy.” It was something small and inexpensive and made me happy – even for a short period of time. What do you have in your store that you would consider a “happy”? Something that would be a little boost to a shopper’s morale but not break the bank. Maybe it’s a specialty chocolate or a candle or earrings or a hunting knife or fun t-shirt or coffee drink or loaded tea or cheese dip or coconut cake or crazy socks or WHATEVER. What do you notice people picking up last minute before leaving the store? What do you notice people ordering last minute saying something like, “Oh…let me get a piece of pie today. My son got an A in math,” or “I’m celebrating, I’m going to pick one of those up, too.” That’s a happy. A tiny, little luxury. I know you have them in your store – no matter what your store is.
Now, what do you do with this knowledge? If you’re a retail shop – put those near the register or front door where everyone will see them. Heck, you can even make a sign that says, “You deserve a little happy today.” If you’re a restaurant, put a sign on each table or menu talking about today’s special [dessert, appetizer, drink] then get the wait staff to mention it. Maybe you do that just one day a week, and make it your Happy Wednesday special with a very slight discount.
The point is, find the “happy” in your store or business and market that. Yes, it may be an inexpensive purchase; but people will begin to associate your business with making them feel better – even in hard times. And they might buy more than the small item…people usually do.
So what is on YOUR “lipstick index.” What’s your happy?
Amanda Love
Executive Director, Humboldt Chamber of Commerce
{And – as always – if you’re struggling with this or anything in your business, please give us a call at the Chamber. That’s part of our job. We want to help you find a way to do whatever you need to help your business survive and thrive.}
