3. Planning a marketing budget
Why a Marketing Budget Matters
A well-planned marketing budget is crucial in the Powder Brows, and Hairstrokes industry, where maintaining motivation is essential. It's often more important than other expenses because, while most costs are predictable, marketing is where many new artists stumble and overspend.
Setting Your Marketing Budget
Two primary channels exist for gaining new clients: offline and online. The larger and denser your city, the more you'll likely rely on online marketing, particularly social media.
Offline vs. Online Costs
Offline methods often have lower long-term costs but take time to show results. For online acquisition, expect to reach 3,000-5,000 people in your target demographic with professional, conversion-driven content on your social media. If you're starting without a substantial following, acquiring a new customer can cost USD 30-50.
Balancing Online and Offline Strategies
Plan your budget carefully, considering both offline and online methods. A balanced approach helps avoid financial pitfalls and keeps your motivation intact.
Assessing Extra Funding Needs
Try test campaigns on platforms like Instagram and Facebook to understand your marketing budget better. This helps gauge the local cost to reach your audience and get inquiries. Use this to calculate your customer acquisition cost; factoring in half of the warm leads will likely convert.
Understanding Procedure-Related Costs
Consider all costs related to performing the procedure, like materials and overhead. This helps determine if you need extra funding, influencing your pricing strategy and motivation.
Example: Calculating Costs Per Procedure
Consider all fixed costs per procedure, like workstation rental, transportation, and supplies. If these total $50 per procedure and marketing costs another $50 (for a local target audience), your total customer acquisition cost is $100.
Establishing a Profit Margin
Your promotional price should be about 40% lower than the average for similar quality in your area. If the typical charge is $250, aim for a $50 profit per procedure. If it's $150, you might invest an additional $10 per procedure for the opportunity.
Preparing for Expenses
Realizing you might need to invest to work can be daunting. To avoid disappointment, set aside additional funds for building your portfolio and covering procedure costs.