Recession and YOU!

[The Geek]

Funnily enough, every time a 'recession' has occurred in the UK and USA since nails came into their own has been a time when the industry thrived! The general consensus for this stems from:

A) During these times, people turn to new flexible opportunities to make money (i.e. entering the beauty business). Oddly, more people entering the industry equals more people having treatments. This raises awareness and interest in the industry.

B) People like to 'escape' from it all with beauty treatments.

C) Some like to 'glam it up' at times of economic slow downs to show 'they aren't affected by it all'.

I guess you could say that this was dessert to your food for thought

 

[hippy-chick]

Well I'm in the massage field, so find that it is difficult to get people to book anyway compared to peeps in beauty, but, once people get into the routine of having a massage or reflexology, they tend to faithfully re-book every month/6 weeks.

Yes Jan/Feb can be dead months, but I'm hoping to be very busy in those months. Sor far I've sold £400 worth of gift vouchers that expire end of Feb.

I'm also planning some detox treatments and try and tap into the New years resolution market.

Today I offered some free hand massages. One lady how took up my offer said she had given up smoking 5 weeks ago and had decided to get her hair done every week as her reward for giving up smoking. She said she was going to try a reflexology and if she benefited, would justify it because she had given up smoking.

 

[Snugglepuss]

Funnily enough I was talking to hubby the other day about business etc and which type of businesses were "doing well"!

So here are my thoughts and I will try not to waffle - like I usually do :lol:

In the UK - we can usually ride the storm of a recession - yes some people may/will lose their jobs and businesses, but that can happen at any time!

Scaremongering, usually means that people do not buy/use the services and products they usually spend their money on - in fear of losing their houses etc - but there are other factors which are usually happening along side like high interest rates and high unemployment! So, we have to look at the "bigger picture" before worrying too much!

However, in the background there are people who are busily exporting to other countries and this in turn helps to steady and balance out the economy. Even one of our geeky members export to, I think it is Norway - so he is helping out :lol: Thank you :green:

Recession would be far more catastrophic in a poorer country than somewhere like the USA or the UK! However, if the USA happened to have a huge recession than it is more than likely to impact countries all over the world. Other than that recessions tend to be "regional" like the Tiger recession when countries like Hong Kong and the like suffered.

One of the UK's largest manufacturing sectors at the moment, is mainly in the chemical industry - pharmaceuticals and then soap toiletries and cleaning preparations.

The UK currently are involved in huge research and development within the chemical indudtry - this then means that other industries are required to support this and again helps with the economy!

Think about all te different businesses you might need, or which have been involved in supplying a product or service! Here's a few -

Someone willl have researched at some point whether there is a requirement for a product/service.

Equipment suppliers.

Engineers and machine firms

Publicity and printing firms

Purchasing companies

Recruitment firms

Legal firms

Research people

So like some of the other geeks I am confident that if you keep your head - we will ride the storm :wink2: should there indeed be one to ride :lol:

 

[Cathie!]

It will be more difficult to borrow money in the UK in the future because many of the lenders get their money from the USA....and like the UK, people have been borrowing above their means.....only because the lending institutions have allowed them to......so a lot of these banking institutions have gone to the dogs.....no more money to lend.

Live within your means and you can still have what you need, but not always what you want.

 

[Susie H]

Live within your means and you can still have what you need, but not always what you want.

That is so true, I sleep far better at night since I stopped living with loans, overdrafts and credit card.
Credit worthy, what a con that is, what it says is, We the bank/loan company will allow you to spend the money that you have worked so hard to earn, and pay us interest on top:irked:
But if you pay cash for stuff you can generally get a discount.
But back on topic:lol: most ladies I know would sooner do without a new item of clothing then let their nails/makeup/hair suffer and I have to say it applies to me to:lol:

 

[Snugglepuss]

It will be more difficult to borrow money in the UK in the future because many of the lenders get their money from the USA....and like the UK, people have been borrowing above their means.....only because the lending institutions have allowed them to......so a lot of these banking institutions have gone to the dogs.....no more money to lend.

Live within your means and you can still have what you need, but not always what you want.

A lot of lenders do borrow monies from the USA! However, lenders borrow from a whole variety of banks from around the world AND they also raise money from their own investors - IE the traditional building society model!

The traditional building society model dictates that normally -

Monies deposited (IE savers put money into accounts)

The banks then charge the borrowers, a higher amount of interest so that they can pay the savers interest, the other financial institutes (if they have borrowed off them) and also make a profit!

Increasingly, the banks and building societies are borrowing from each other as they can raise more money at more advantageous rates (and also as there isn't as many deposits being deposited!)

However, in the UK, the financial institutions are becoming more and more cautious - you then get a Northern Rock scenario, where they have to go to the Bank of England to ask for a loan/help and the investors panic because of scaremongering and withdraw their money (not blaming them - I'm sure I would do the same)!

The outcome of the above is - worst case scenario - the investors lose some (a lot) of their money (I believe the max they can get back is £30k under the investors protection scheme) the borrowers get at best case a free mortgage OR worst case if another lender buys the book off the bank'building society - the same amount of mortgage as they had been paying previously!

If people lived within their means rather than borrowing more than they can afford, then perhaps they wouldn't be in so much debt????? - I know it is not as clear cut as that in some cases -

but what about taking responsibility for your own actions?????

Some people are always too ready to blame others for their downfall and yes, legal forms etc can be not only daunting and confusing but difficult to understand - so the moral of the story is - be careful and live within your means BUT take responsibility for your actions! If you don't understand it - don't just sign up to it!

 

[tinkywinky]

Good thread, maybe it's time we trained in something else as a back up! I would be very sad to have to give it up though. Apparently beauty is one of the fast growing industries? Perhaps it will be on people's budgets each month (that's what I'm hoping anyway lol!!)

 

[pazzy]

Going back to living within their means.

Go on Martin Lewis site for money saving tips (I think we should all do what he says).

By shopping around for groceries I save loads - I think that is where people should be tightening their reigns to afford luxuries like nails and beauty, not the other way round.

 

[nailzoo]

would part of the answer be due to who holds the purse strings?

when times get tough, eating or paying off the loan on the house can often be more important than fingernails, philandering, facials or fake tans, let alone ear candling.

Ya gotta be realistic when it all hits the fan.

 

[lisa caputo]

would it be stupid to lower your prices just till things stop being hairy-just so you keep your clients,the non regulars i mean. so they dont even think about leaving not even for a minute.

 

[estherlou]

maybe not lowering prices as such but a money off incentive, i did one for november it was 25% off everything, sounds like alot but i sent a little flyer to everyone who's ever been into the salon, it worked a treat and i had a great november, i think i'll do the same for end jan to feb, i have to say i'm almost looking forward to jan being a little quite, i'm knackered xx

 

[Brandywine]

Me and my husband have talked about this recently, but he's an electrician, which thankfully people would always need.

I definitely think it would be harder for me to get new clients. I know I already find that people can't justify treating themselves as it is. This is probably because I set out to attract people that perhaps wouldn't normally have treatments at a salon, so you have to take the good with the bad.

I'll just see what happens and at the end of the day my mum taught me to be good with a small budget, so I'm sure we'd manage (I'm already a keen shopper at Aldi and Lidl!).

 

[Marlise]

(I'm already a keen shopper at Aldi and Lidl!).

Nothing wrong with Aldi or Lidl.... have always used them and do most of my shopping there these days.:wink2:

However, they are getting pricey though ..... I remember if you went to Aldi or Lidl and spent £30, you pretty much bought half of the shop and possible a few share in the company :lol: Not so anymore .....


Apologies, I have moved off the topic of the thread.


Marlise

 

[Lucia Etch]

This is an excellent topic.
I have lost clients this past year.
More than ever before.
Some have lost their homes and moved to another state.
Some have lost their jobs.
Some have been put on notice to lose their jobs.

I just raised my prices.
I wont lower them.
I have finally figured out that when you start giving away discounts or any thing is free, the value is just that, free.
I let myself get worried, usually in the morning when Im getting ready for work. Then I remind myself that I have a strong clientel base and I shut up, turn up the radio and drive.
I gage the whole thing with the total amount of new clients that walk or call in.
As long as there is a demand my services, I will be there.
Unless, it cuts into my shopping. :lol:

 

[fiona wallace]

Well personally I think this is a load of bull (sorry my old friend:irked.

The media are responsible for so much of the worry and anxiety that people needlessly experience and I know this thread had just added to this NEEDLESS anxiety by reading the responses it has received.

Stop worrying peeps, do your job, aspire to better things, greater client service, keep yourselves well educated and PLEASE PLEASE do not have sleepless nights after watching Jeremy Vine who needs to be controversial to get ratings!!!!!!!!

If he, or any other talk-show host, just told you the truth that everything is just FINE, and continued to tell you that day after day, they wouldn't have a job!

So......as someone mentioned very briefly, be POSITIVE, 'tis the season to be jolly' and count the pennies rolling in and look forward to a fantastic 2008 - because I promise you IF you decide WHOLEHEARTEDLY that 2008 is going to be FANTASTIC for you, then it WILL be:hug:

 

[izzidoll]

Well personally I think this is a load of bull (sorry my old friend:irked.

The media are responsible for so much of the worry and anxiety that people needlessly experience and I know this thread had just added to this NEEDLESS anxiety by reading the responses it has received.

Stop worrying peeps, do your job, aspire to better things, greater client service, keep yourselves well educated and PLEASE PLEASE do not have sleepless nights after watching Jeremy Vine who needs to be controversial to get ratings!!!!!!!!

If he, or any other talk-show host, just told you the truth that everything is just FINE, and continued to tell you that day after day, they wouldn't have a job!

So......as someone mentioned very briefly, be POSITIVE, 'tis the season to be jolly' and count the pennies rolling in and look forward to a fantastic 2008 - because I promise you IF you decide WHOLEHEARTEDLY that 2008 is going to be FANTASTIC for you, then it WILL be:hug:

I think we may have a crossed wire here Fiona.....and less of the 'old' friend if you don't mind :lol:
I am talking Jeremy Vine on Radio 2, where news stories are discussed intelligently....I hope you don't think I watch that car crash telly that is Jeremy Kyle!!:irked: !!!!....AS IF!!

I do actually think that the majority of posts have been positive on here, and have helped with any worries people may have had.

You are right though, along with another poster....The general media are in danger of being scaremongers when they latch onto something like this and can actually cause a recession by making us panic and stop spending!!!.

I for one have been greatly reassured by the response to this thread.

Roll on 2008!!

 

[fiona wallace]

Ah, my young friend:lol:, I did have visions of you watching car crash telly, but if I hadn't been so quick to rush in, I would have realised that it's IZZIDOLL....... of COURSE you were listening to Radio 2!!!!!!:lol::lol::lol: