If you run a small business, you have probably seen it: even when wallets tighten, people still splurge on coffee, accessories, or self-care. Why do those small luxuries survive when bigger spending disappears?
Even in tough times, customers still find ways to treat themselves. Psychologists call it the lipstick effect. It is the idea that when budgets shrink, people still splurge on small, affordable luxuries to boost their mood. For small business owners, this is not just an interesting trend; it is a powerful insight into consumer behavior that can shape how you market and sell.
In this episode, we will explore the psychology behind the lipstick effect and why it matters for your business. You will hear real-world examples of small businesses that thrive by offering little luxuries customers can’t resist, from coffee shops and bakeries to local boutiques and beauty services. More importantly, we will break down how you can position your products and messaging to tap into this consumer mindset. If you have ever wondered why customers buy small indulgences during downturns, and how you can turn that into growth, this episode gives you the answers.
You’ll learn:
- How the lipstick effect can set you up to sell in down times.
- What types of businesses do it best.
- Specific marketing strategies for your small business that complement the lipstick effect.
HAVE A SHOW IDEA?
Do you have an interesting idea for a show topic or a marketing problem that you’d like us to cover in a future episode of Mastering Local Marketing? Email matt@masteringlocalmarketing.com and we’ll add it to our future episodes.
Mastering Local Marketing is for small business owners—whether you run a restaurant, retail store, service-based business, or handle marketing on your own—who want proven strategies to grow their customer base, increase the number of customers, and market smarter.
Each episode delivers actionable tips on proven marketing strategies that build awareness through digital marketing, content development, engagement strategies, and networking opportunities like key partnerships – while not wasting your time or money on things that don’t work.
Fans of these marketing podcasts will find plenty to binge here: Savvy Marketing for Small Business by Samantha Shephard, Grow Your Local Business by Leslie Presnall, Local Marketing Trends by Gordon Borrell, Marketing Ink: Big Ideas for Local Businesses by Allie Bloyd, The Marketing Millennials by Daniel Murray, and The Goal Digger Podcast by Jenna Kutcher.
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