How can you improve your bottom line? The answer may be simpler than you think.
Stop trying to sell to everyone, and start trying to sell to someone. Stop trying to be the best at everything, and start trying to be the best at just one thing.
Let’s take a look at the beauty industry, for example. Beauty is a hugely lucrative business, and a growing number of salons in the USA are finding a niche cutting back to offer fewer services, not more.
Imagine creating a $50 million success out of nothing but hot air. Well, that’s exactly what Drybar in the USA did, a blow dry bar specialising in just blowouts, no cuts, no colour.
Obviously what they’re really selling here is self-esteem. Women want to look good. But at $65 to $100 for a blow dry at a “full service” hair salon, it’s simply not affordable on a regular basis. That’s where Drybar has disrupted the hair salon industry. For just $40 (okay, don’t go and convert that to Rands now, our exchange rate is embarrassing), clients can walk out with the perfect blow dry. Drybar made a salon blow dry accessible and affordable for women on a routine basis, and it’s worked for their bottom line.
Of course, they still have the usual expenses of real estate, labour and utility bills, but because they refined their business model to a single service by focusing on doing one thing and doing it brilliantly, they were able to appeal to a large, underserved demographic (Ka-ching, $50 million in revenue). Each store nets 15% to 35%. Other hair salons usually clear 11% or so. Drybar now has over 40 locations across the country. Impressive, right?
Where do you go for the perfect blow dry? Drybar.
Here’s another one. Face Haus in the USA only offers 30-minute facials for $45 dollars. Again, their pricing strategy make facials much more accessible and affordable compared to that of a day spa. Who’s their niche market? 30% men and the majority are teenagers who need maintenance facials. Brilliant.
So what’s my point?
Focus on one thing and be the best at it. When it comes to the service industry, customers aren’t looking for a one-stop shop, they’re looking for a company that does one thing and does it better than the rest.
And, that’s exactly what we do at The One Percent. We’re best-in-class specialists.
Where do you go for revenue-generating marketing solutions? The One Percent.