How is your Lipstick?
Guest post from John Stanley
Lipstick sales are up 6.7% at Estee Lauder in the last two months. How are your sales?
Not selling lipstick? You should be — in the present economic climate.
Let us explain.
“The Lipstick Factor” was coined by Leonard Lauder in 2008 when he noticed that Estée Lauder lipstick sales increased during every recession. He discovered that, during economic downturns, consumers purchased small, affordable luxury items — and lipstick fell into that category.
Now let us relate that to our farm.
We are currently in the middle of our Pick-Your-Own season. It has been okay, mainly because it takes a tank of gasoline to get to our farm, as we are three and a half hours away from our city market. For many families, visiting the farm has become a luxury they feel they cannot afford right now.
At the same time, our Chestnut Flour sales have increased and are higher than in previous years. Our “Lipstick” product is Chestnut Flour.
The challenge in your business is identifying your own “Lipstick” items and promoting them accordingly.
How Do You Identify a Lipstick Item?
- An affordable indulgence with a relatively low price point.
- High emotional value that offers consumers a “feel-good” factor during stressful times.
- An immediate effect that improves the consumer’s mood.
- Sales that remain steady during an economic downturn. These products can also indicate when consumer confidence improves, as sales patterns will change again.
- A product that helps consumers maintain a sense of status or comfort when they cannot afford more expensive purchases.
Your Challenge
Select around three potential “Lipstick” product lines and promote them. Monitor sales carefully to ensure you have selected the right lines. Get it right, and your overall average sale will likely increase as well.
To learn more valuable tips on growing your business, visit The Agritourism Retail Academy.
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