A hair salon is on course for a new period of growth while weathering the impact of inflation after participating in a short, focussed programme by Lancaster University Management School: Pricing with Purpose.

Lauren Bell launched Belle Ame, a salon and online store based in Lancaster, four years ago after more than two decades of working in the sector in the UK and abroad.

Having narrowly survived the impact of the pandemic, she now faces a multitude of challenges including a cost of living crisis and inflation.

“As a new business Covid was a kick in the teeth,” Lauren explained. “Financially, it was very difficult. But we bounced back and experienced some steady growth until this latest set of challenges.

“Materials like hair dyes, energy, and postage and shipping are all rising in price. As a small business, you don’t have much wriggle room. Add to that, customers feeling the pinch, delaying appointments, and spending less. Then I have my team of six staff who need a pay rise to cope with the cost of living. The business is getting hit from every angle.”

After a positive experience of LUMS’ Help to Grow programme, where she gained extensive insight into resilience and long-term growth, Lauren wanted help with a pressing pinch-point, pricing.

“I am extremely proud of what we’ve created at Belle Ame,” said Lauren. “I have a great team, doing wonderful work for a competitive price. But when costs rise it creates a headache, with questions like: do we just take the hit and keep prices low? Do we cut costs? Will we put customers off by increasing our prices?”

Lauren enrolled in ‘Pricing with Purpose’, a series of two, full-day workshops designed for the owners and directors of SMEs that want to review their current pricing strategies to future-proof their businesses.

Led by business expert Mark Prince, the fully funded programme breaks down the barriers to implementing price changes exploring the different types of strategies and seeing which can work best for your business.

Day one introduces delegates to the history of pricing and reviews the current climate and what this means for businesses. Workshops also review the barriers to pricing, how to deliver high impact and the most effective strategies for productivity and profitability.

Day two focuses on participants, analysing their current processes in an effort to give them more control of their finances and drive-up profits.

Lauren said understanding the ‘how’ and ‘why’ of what impacts pricing was eye-opening.

“I didn't study business at school or college,” she said. “My business acumen was gained through experience. So, to have quite complex financial concepts explained in accessible terms by an expert was brilliant.”

But it was the analysis of her and other participants' businesses during the course that Lauren found the most valuable experience.

“To have someone dissect your business and give you the home truths you have been afraid to face up to is an uncomfortable experience, but it was honest,” Lauren explained. “We were encouraged to challenge each other to find the answers we needed and put it all back together. There were some hard truths and lots of aha moments. It was extraordinary.”

For Lauren the message was clear, she had a great product and a great sales team, but her pricing was too low.

Since the programme Lauren has felt confident about her pricing decisions and explaining the rationale to her team and customers. The business is forecast to grow by 30% over the next year.

“The biggest impact from the programme was having the courage of my convictions to put my prices up and not to fear losing a few clients,” Lauren said. “At the end of the day, the bottom-line benefits support the activity of accurately pricing your products. It means I understand the true value of the business and can grow.”

Meanwhile, an unexpected benefit from the programme has been the relationships Lauren has forged with the other participants. One of the cohort is now running her social media platforms.

Fully-funded places are available on the next 'Pricing with Purpose' programme starting on April 27.

The Pricing with Purpose programme is funded by the European Regional Development Fund (ERDF) for Lancashire businesses that employ from two to 250 full-time employees and have a turnover of less than €50m (or equivalent in GBP).

To find out more and apply contact lancashireforum@lancaster.ac.uk or enquire online.

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