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In a time of conscious consumerism and cost of living pressures we are now seeing what is called the ‘lipstick effect’.
This economic and retail theory proposes that cash-strapped consumers are more likely to purchase affordable brand lipsticks, beauty goods and luxury items during an economic downturn. In this environment Consumers still want their small indulgences and to treat themselves even when faced with financial challenges and their money is tight.
This phenomenon was reportedly suggested by beauty giant Estee Lauders former chairman, Leonard Lauder, who noticed an increase in sales of lipstick during the US recession in the late 1990’s. 
More recently, this 'theory' gained attention with the headline ‘cosmetics at face value’ ‘cost of living pressures make big retailers unlikely beneficiaries of the lipstick effect’. The article included comments from various sources including leading supermarkets, experts and everyday consumers.
Comments reported as, ‘consumers are starting to explore alternatives that represent better value for them’ ‘beauty retailers have to grab people's attention, you’ve got to entertain them, you’ve got to excite them’. ‘it was important how beauty retailers brand themselves as a necessity for consumers’! ‘I've just started looking at what I was paying for if it was marketing or pretty packaging’!
Another example. The lipstick effect is proposed as one of the reasons movie complexes and fast-food casual restaurants do well during hard times. Cash-strapped consumers want to treat themselves to something to help them forget their financial worries. Not an overseas holiday but a treat, a cheap night out!
This pattern is also a manifestation of something economists call the income effect. And there is more, much more,. Search this subject with the click of a mouse on the web.
So, what does the lipstick effect mean? What does it mean to you, your Business!
Success can be different for everyone, fame, fortune, happiness! All of those and more!
How you define it will vary as will the factors shaping it. It can look, feel and be different for us all!
If you are a Business owner it also depends on your lifestyle, goals and aspirations and what you hope to achieve with your small Business, now and long term.
When you consider all these factors and influences, and which are the most important, you might see Success as providing benefits.
The 6 Benefits of Success
- Improve Cashflow
- Reduce risk
- Have clear direction
- Take action
- Develop a winning Team
- Having fun
Success looks like, feels like:
- achieving specific measurable goals and objectives,
- overall satisfaction, belief in self and Team
- being emotionally and financially stable, peace of mind
- doing what you love and enjoying your work everyday
- reward with profit for hard work
- making a difference, with personal effort, quality products and service.
Let's look more closely at the 6 Benefits of Business Success:
1. Improve cashflow:
A regular and smooth flow of money in and out of the Business necessary for daily operations, and costs including paying employee's, purchasing stock, and taxes. Positive cashflow indicate the Business liquidity.
There are 9 Ways to Help get your Cash flowing. Click on link.....https://blackburnaccounting.com.au/blog
2. Reduce Risk: Risk comes in different ways requiring different strategies to manage.
November is the month of opportunity for planning to gain increased sales.
Attraction to the November Black Friday and Cyber Monday events has seen recent record sales and this month also heralds the lead into Christmas gift shopping and summer holiday, traditional Boxing Day sales.
According to a recent survey, the ‘Christmas tills will be ringing’ despite the current economic climate. Shoppers will be more frugal with cost-of-living pressures impacting but are still ready to buy.'
Whatever your Business if you want to get your share of revenue, follow these Tips. Increased sales equals increased revenue and who doesn’t want that!
It starts by understanding WHY November planning is crucial for Sales Success
Simpy said, with a range of opportunities you can't afford to miss out. Think strategic and back with sound planning and preparation to capture and gain market share.
In other words, creating an environment using strategies that encourage the best ideas from everyone. When everyone feels heard and valued the possibilities are endless.
Brainstorming in recent times has had some criticism but if used wisely it is still an effective means to gain input and a range of ideas from participants. The answer lies in managing the process efficiently. Lets look at examples.
The Session is arranged, you are gathered with your team, the goal is to, extract ideas, develop strategies, banter, speculate and find solutions to a problem. Of-course, as a reward for participating, morning tea is provided! And don’t forget those sugary sweeties strategically placed on the table.
Lets get started the Session Facilitator announces enthusiastically. Don’t hold back, shout out your thoughts, the more the better and crazy and wild ideas are not discouraged or disregarded. Who can forget the Brainstorming mantra 'no idea is a bad idea'! Anything is acceptable in this frantic environment!
And haven’t we all been to a Session where the loudest voice is heard, the most confident hog the agenda and/or the session becomes a free-for-all that sinks into chaos, often ending with groupthink decisions. The results can be mixed, and participants react by loving or loathing the experience. You might find yourself thinking was it worth it!
But there are techniques you can adopt, and steps if followed will make the Session a success!
Yes, unlock the power of Brainstorming by adopting strategies that get the best ideas from everyone. And isn't that what it’s all about?
Here are 5 Steps you can adopt:
Calculate Co-Contributions
Check your eligibility for the co-contribution, it's a good way to boost your super. The amounts differ based on your income and personal super contributions.
If you are able to pay a little extra into your super before the end of the financial year 2024, the government may also make a contribution. Known as a co-contribution, you could receive up to a maximum of $500 contribution from the government into your super account if you are eligible.
Under the co-contribution scheme, the government provides a tax-free superannuation contribution of up to $500, matching 50% of a contributor’s own contributions.
|
Year |
Lower |
Upper |
|
2023-24 |
$43,445 |
$58,445 |
Superannuation What to Know
Superannuation has many facets, what to know, what is required, and what to do. To get the best outcomes speak with a professional about the strategies best suited to your situation.
If you are a Business owner Blackburn Accounting is available to provide professional advice. We offer a broad range of services including personal, Family Business Management, Cashflow Management, Superannuation and retirement planning, and Business Development.
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