Fashion and Beauty Marketing 101 - March 1st, 2015

“We’re here to help you grow”

This past Saturday I went to a flea market. I didn’t realize I was going to get a good lesson from somebody that I would be able to share in my blog but I did. I guess no matter where you are you can always learn something.

I got into a conversation with a guy and he told me how he got into business. The conversation went in another direction and we started talking about people who have a lot of wealth and the things they do to achieve it. They don’t really work harder than another person. They use their intelligence to their advantage.

He gave me an example using insurance companies. Every month a person pays X amount of dollars to have insurance. Let’s say that person at the end of the year pays out $1,000. If a person never has to use that insurance that’s $1,000 that the insurance company gets to pocket without having to do any work. There used to be a time where insurance companies would say if you have a preexisting condition you can’t collect on that insurance. Most people would get the insurance and think they are covered but when it came time to collect the insurance company would say you can’t collect because you had a preexisting condition. However, every month you are still paying out money to them that they still pocket. So the rich get richer. Correct me if I’m wrong but it wasn’t until Obamacare came along and changed those practices. Now if you have a preexisting condition you can still be covered and the insurance companies would have to pay out.

My brain started thinking. How could a business legitimately use something like what the insurance companies do to build their wealth? Let’s say you are a makeup artist or hair stylist. You have customers that you know will always be loyal to you. You also know that it costs more to get new customers than it does to keep the ones you have. You come up with a loyalty program. For a certain price every month, your loyal customers pay X amount of dollars. Let’s use numbers to illustrate. For $25(or insert your own number here) every month your LOYAL customers can receive your service. They pay ahead of time for 6 months which would bring you $150 immediately. By allowing them to pay ahead of time you also give them a price break on your service.

Your LOYAL customers get a reward for being loyal (discount rate on a monthly service) to you and you have money being paid for a service they can have every month for six months. Most likely you can always count on your loyal customers to say good things about you which may persuade other people that need your service to use you.