"Retailicine" is a new paradigm for maintaining a successful practice, even beyond the current recession

Let's get this out of the way: The economy is agonal, and many businesses—including aesthetic practices—are not going to weather the current crisis.

Unfortunately, this economic crisis is global in nature. From Wall Street to Main Street, London to Dubai, Singapore to Hong Kong, we all feel it. Those of us who have heard the stories from frugal elder relatives who lived through the 1930s may be shocked to hear themselves referencing these same stories as they advise their kids and staff to curb indulgences. Perhaps a look back is not such a bad idea.

Who did well in the Great Depression, and why should you care?

The businesses that prospered in the Depression were known as "sin industries," referring to alcohol, candy, and cigarettes.

Prohibition was repealed in 1933 after both crime and consumption of alcohol soared. We learned that prohibition of two mutually beneficial exchanges is doomed to failure. Also, chocolate sales were up. Hershey did well as it introduced Mr. Goodbar, Hershey syrup, and chocolate chips. Cigarette sales also spiked.

Interestingly, in addition to the sin industries, another realm that did well was the cosmetics industry. Both L'Oreal and Revlon expanded. Estée Lauder is reported to have remarked—and I am paraphrasing—"After a woman feeds her kids and husband, she would rather buy lipstick than eat ..."

Is this statement still true today? What do all the sin industries have in common, and why do we care?

The sin industries allow us to temporarily escape from reality, satisfy a guilty pleasure, and—this is key—receive immediate gratification. So if the key is a quick fix, right behind that is "inexpensive." Affordable pricing is essential to achieving maximum gratification and repeat business.

How many can relate to the feeling after buying an item that makes you feel great—maybe a new article of clothing, a new watch, or a new car? But how much better is it when that new item is affordable and immediate?

More.

[Source: PSP]