Expenses getting Expensive?

Running a Business isn’t easy. It doesn’t matter if you are a single entrepreneur or own several different locations with an abundance of personal. In fact, it really doesn’t matter what Business it is, running a Business isn’t easy.

Prices trickle down. If the component cost increase, more than likely the product will increase. If shipping cost increase, components will increase, product will increase. If gas increases, shipping will increase, components will increase and yup…you got it, products will increase.

Supply and demand will have in impact on pricing.

If the demand is high (gloves), the supply begins reducing, prices will go up. Hence why our gloves at Centre For Beauty cost us more than double what it did 1-1/2 ago.

In addition as the demand continues to grow, Mfg’s  can’t keep up, backlogs happen. As backlogs happen, prices go up because the demand is so high. It’s crazy stuff!

Yet, it is the cost of doing Business!

Consequently, when this happens, people start looking elsewhere for products they use to get from a Supplier, they can no longer get as quickly as they are accustomed to. Sooooo, the supplier loses Business and then may have to raise their prices because the qty. of Business has decreased….sometimes considerable.

What a vicious circle.

The idea for this article cam from a post on social media (of course) which, many of you responded too.

It didn’t really have too do with pricing. It was something about finding the products you need…since COVID.

The answers were quite interesting. The main component being, everyone has been looking elsewhere for products…searching for a better price.

Our Beauty Technicians are doing the same thing they complain their customers do. Shop around.

It also explains what has been going on in my Business. The increase in request for Pro access to our store, has increased by about 25%. That’s HUGE!

Yet, the turn into $$$$ just isn’t happening. THAT has never been the case.

I can only presume….Technicians are price shopping.

I get it, I really do. It’s easier NOT to have a price increase, than it is to listen to the complaints, hear the grunts and experience any loss of Business.

However, what a piss poor way to run a Business.

At Centre For Beauty, we only raise prices when our Mfg’s raise prices.

We have only had two(2) price increases thus far. And, our last one was about 5 years ago.

One Mfg. is dealing with supply and demand. The other Mfg.is dealing with shipping cost. They waited as long as they could yet ultimately hit us with a price increase.

Our shipping cost have increased over 25% and I’ve made purchases 5X what I would normally purchase, because my Mfg. have had a ton of shortages and I don’t want to have a -0- inventory.

It is absolutely insane how expensive, expenses have gotten.

I’ve increased our products cost when we were notified on those two Mfg’s which BTW, even included a few price decreases. I have NOT raised my shipping cost, I still offer FREE FREIGHT FRIDAY (1st Friday of each month) and we still offer FREE shipping on orders of $300.00 or more.

How can I do this?

When it comes to expenses, you should always calculate a cushion where you can. Shipping for me was one of them.

I can’t really put a cushion in my product sales, as cost are dictated by the Mfg. So I used shipping as my cushion to prepare me for a pandemic. Okay, maybe not knowing there would be a pandemic coming….some kind of crisis.

Also a cushion is great for accounting for errors and offering discounts such as birthday coupons, special discounts, show pricing etc.  It ALL cost. Expenses are Expensive.

What I’m trying to share is what is happening to you is happening to everyone. As I always say, it isn’t what happens to us, it’s how it is handled.

When COVID hit, many learned some valuable lessons. Lessons like saving more $$$ for rainy days. Lessons like not working as hard, working smarter. Lessons in what our cost are and when to raise prices. Lessons like not waiting until the last minute to purchase products. Lessons in disinfection……the list goes on and on.

What I’m seeing now, is many are back in that same position because the result of COVID is now showing its ugly head. . . once again! Inventories are down and prices are up.

As a Business owner it’s imperative to run your Business thinking from ALL different angles.

#1 lesson – if you remember nothing else…..The sign of a good Manager is being able to ward of problems before they even exist. The ability to be prepared for the worst case scenario. The ability to be prepared mentally and financially.

There is no doubt, times right now are tough. It’s the fear of the unknown. None of us have any idea how this whole Covid thing will end…if ever.

I know many of you re-evaluated your Business during the past few months. For those of you who haven’t, I’m suggesting you do.

  • Don’t just look at what your cost are also….
  • Look at where your cushion is going to be.
  • Look at when the right time is to make changes.
  • Write your plan for your next emergency.
  • Establish a Business emergency fund.
  • Be prepared.

Are you slow? Figure out why. Then figure out what you are going to do to bring in more Business.

Many of you are in Suites. One of the downfalls of being by yourself, is having to do everything by yourself.

I remember saying when Suites and Booth rental first came into play…..Amongst many things….how are you going to constantly market your Business. Where is your next new client going to come from…eventually loss of clients do happen.

This whole topic for me is something I could talk on for ever.

What I would like to say in closing is this; As a Business person it is your obligation to “make things happen”. The ball falls in your court whether it be a happy bounce or a flat. This means everything from Marketing, pricing, problems, clients, accounting, preparedness etc. etc. If there is a problem in your Business…..it begins and ends with you.

Expenses ARE expensive! Question is……are you prepared?

CJ Murray, President

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4 thoughts on “Expenses getting Expensive?”

  1. Hello CJ, the cost of expenses have gone up. I made my pros and cons. If the “cheap” nail products have gone up as much as LCN and foot logix why not stick to the luxury line and the results last longer too. Plus, I am taking NAS infection control class and now I see why you love and highly recommend Biosurf. I learned my disinfection practices was lacking so much, and I am glad to took this class to be cost efficient and more knowledgeable for my business. I understand so much more of everything you say now, instead of trying to understand why and just be like hmmm okay I will try it. When I raise my prices I understand how, why, and when. Expenses have gone up, and I am moving into a nail suite, but I’m learning how to work smarter with my marketing and time management of my duties. Thank you CJ, these topics are not talked about in our industry. I’m really glad you do.

  2. Awwwww the topic of the price of gloves(because of COVID and the power of the internet driving things even higher) the price for a quality service too. I can’t go backwards with a lesser service. I struggle with should I increase my prices maybe just a few dollars? But then if it is an uneven number and having to make change and having less tip money etc? If I really change the price then do I really cover my cost by giving myself a raise. Cost has increased, tips are down lately. I haven’t downgraded my service so how does this happen? Are people finally traveling more? By car or by plane, abroad? Those trips that were planned two years ago are now happening. Are people just afraid to spend money. I service older folks mostly pedicures but I am an esthetician too. I have focused my business mostly on wellness footcare that has served me well through the pandemic. I’ve done 3 facials in the last 2 years. I miss doing them but don’t miss all the set up. But I still have product on the shelf that needs to be invested back into doing facials Should I switch to a offering mini facials to fill in the blanks increase revenue?
    Am I able to keep up with the inflationary ways of the government? Do I just put my head down, keep plugging away and take the attitude of don’t worry be happy? Be grateful you even have customers who love you and keep coming. However some have passed away or moved away.
    Well I prefer to just enjoy what I do and my clients. Don’t worry be happy right?
    Spend money wisely, God will take care of the rest. He’s got the whole world in his hands.
    AND take time to enjoy life. Go do a road trip more often and spend time with family. Work life balance baby. Oh my the swirls that go on in my head. I will rap up by telling myself if this was my last few days in my business how would operate and conduct myself? Holding a grateful space in my heart always and operating from that space. It’s funny all my cares go away…

    1. Seems like your head spins as fast as mine does. What I would say is this….as entrepreneurs and Business people who work on their own, it is imperative to keep that spark alive in us…..always. This means we have to continue being creative. If Business is done, yes…it is okay to question. One question however should always be, “what can I do to make It appealing to my clients, while continue to earn me a good living”. It’s really all about adjusting fire. One thing for sure about this whole pandemic thing is nothing is the same…..therefore, neither can we be.

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