In today’s episode, we’re discussing the Lipstick Item Strategy, a marketing approach that uses affordable, low-cost products to introduce customers to your brand. In today’s economy, where consumers are more mindful of their spending, this strategy can be an effective way to build trust, increase brand awareness, and encourage future purchases.
Chapters:
- 0:00 Intro
- 1:04 Hot Takes
- 4:30 Want to make an easy $500?
- 4:51 What is the lipstick item strategy?
- 8:32 Why This Strategy Works Right Now
- 9:23 Strategy in health & beauty
- 9:56 Strategy in restaurants
- 10:17 Strategy in gyms
- 10:45 Strategy in salons
- 11:25 Strategy for consultants
- 11:45 Strategy for designers
Hello everyone and welcome back to another episode of Honestly, It’s Business. A show where I give my honest, unfiltered opinions on running a small business, building a brand, and the messy, sometimes hilarious reality that is being a creative business owner.
My name is Barbara DiLisio. Thanks so much for being here.
In today’s episode, we’re talking about lipstick. Don’t worry, I’m not becoming a beauty YouTuber all of the sudden.
We’re talking about the lipstick item strategy in business: low-cost offers that get people in the door and turn them into long-term, loyal customers.
This Week’s Hot Take: The Competitive Advantage Is Showing Up
Dear business owners in construction, landscaping, electrical, and pretty much every blue-collar service industry:
Want a competitive advantage right now?
Show up.
Seriously. That alone puts you ahead of a shocking number of companies.
I cannot explain how frustrating it’s been trying to hire people to work on my house. Contractors don’t answer the phone, ignore emails, disappear after giving estimates, or simply never show up when they said they would.
We recently had a company come out to give us an estimate for some work on our outdoor space. The project involved clearing out part of the yard, pouring concrete, and completely upgrading the area into something really nice.
It was something we had been wanting to do for a long time, and even though it wasn’t cheap, we decided to move forward with it.
So we contacted the company and said, “Let’s do it.”
They scheduled a time the following week to come by, have us sign the paperwork, and collect the deposit.
And then the guy never showed up.
No call. No message. Nothing.
Think about how insane that is for a second.
We were fully prepared to hand this company a significant amount of money, and they lost the job for one simple reason: they failed to do what they said they were going to do.
That’s it.
I don’t understand how businesses stay alive operating like this. But I guess the answer is that this behavior has become so common that customers expect disappointment now.
There is massive opportunity for businesses in this industry that do the bare minimum of professionalism.
Return calls.
Respond to messages.
Show up on time.
Communicate clearly.
Do what you say you’re going to do.
That’s it.
Literally the bare minimum.
That’s all you need to do and you’ll be so far ahead of your competitors. The bar is so unbelievably low right now that basic reliability in these industries feels like you’re getting luxury service.
And to the companies operating like this: you can make excuses all day long, but at the end of the day, there really is no excuse.
This comes down to poor management, poor operations, weak communication, and bad systems, or no systems at all.
Whether you realize it or not, it’s damaging your brand and costing you real money.
You’re losing out on thousands of dollars in potential business not because customers don’t want to hire you, but because you failed to follow through.
To all the companies operating like this, if you care about your reputation and want to stop losing thousands of dollars in business, contact us.
Because whether you realize it or not, your brand is not just your logo or your website.
Your brand is the experience people have with your company.
It’s whether you answer the phone.
Whether you follow up.
Whether you show up when you said you would.
A lot of you are damaging your brands simply through poor communication and bad customer experiences. We can help you fix that.
And one thing you have to worry about with us is whether or not we’ll respond.
That was this week’s hot take.
What Is the Lipstick Strategy?
Up next, we’re diving into lipstick items and why having a low-cost entry offer can be a powerful marketing tool for your business, especially right now.
But first:
Have you signed up for our newsletter yet?
We offer practical, no-fluff insights on branding, web design, and growing your business online. Subscribers also get exclusive access to our referral program where you can earn an easy $500 when you refer a client who becomes a paying customer.
The link is in the description. Sign up today.
Successful businesses in a variety of industries are leaning into a specific type of marketing strategy lately: affordable products and services that make it easier for customers to say yes.
At a coffee shop, it might be a $3 pastry.
A software company might offer a $10 maintenance plan.
A high-end skincare brand might offer a $5 lip balm.
A high-end restaurant might offer happy hour appetizers.
These products are not accidents.
They are often what businesses call entry-point offers, gateway products, or informally, lipstick items.
The term comes from an observation that during economic uncertainty, consumers still buy small luxury items even when they cut back on major spending.
Historically, lipstick sales have increased during recessions because people still want affordable emotional rewards. Even when their lives might feel stressful, they still want small moments that make them feel good.
Businesses learned something important from this behavior:
People may stop buying expensive things during uncertain times, but they still crave comfort, convenience, and small wins.
So companies started creating low-priced products specifically designed to:
- Get customers in the door
- Reduce buying resistance
- Create trust
- Encourage repeat visits
- Eventually lead to larger purchases
And I think right now is a really good time to lean into this strategy.
People are stressed. The economy feels uncertain. Prices are up, attention spans are down, and it’s getting harder to get people to spend money, especially on higher-ticket services.
Even when it’s something they actually need, there is still hesitation. People are more cautious, more selective, and more reluctant to spend their hard-earned money.
Promoting a low-cost, entry-level offer can be a powerful way to help people understand what your brand is all about.
It builds trust, increases brand awareness, and starts creating loyalty early on.
Why Low-Cost Offers Work
When people aren’t familiar with who you are or what you do, a lipstick item gives them a low-risk way to engage with your business.
It lowers the barrier to entry and makes that first interaction easier.
The goal is not to generate huge profits from these offers.
The goal is to introduce your brand, create customer habits, and build an emotional connection over time.
From there, customers are far more likely to grow into long-term clients who eventually invest in your higher-ticket services.
It’s a long game.
Selling a customer one small item can be more valuable than endlessly advertising to strangers.
Because once someone buys from you:
Trust increases.
Familiarity increases.
Future buying friction decreases.
Psychologically, the hardest purchase is often the first one.
A lipstick item lowers that barrier dramatically.
A customer might hesitate to spend $100 on skincare, $5,000 on consulting, or $50 per month on software.
But they may gladly spend $5, $10, or $15 to “just try it.”
That tiny transaction changes the relationship.
The customer is no longer just a viewer.
They’re a buyer.
A small purchase feels emotionally safe.
If the customer loses $10 on something they don’t love, they recover almost instantly.
But if they lose $1,000, they feel the pain.
Lipstick items reduce that commitment anxiety.
And if they enjoy their small purchase, they are much more likely to buy something more expensive later.
Why Lipstick Items Matter Right Now
The current economy has created ideal conditions for lipstick-item strategies.
Consumers today are more price-sensitive, cautious, and selective about where they spend their money.
But they are also emotionally exhausted.
They’re seeking comfort and joy that feels affordable and low risk.
Many people are putting off bigger purchases like expensive vacations, electronics, home renovations, and higher-end services.
At the same time, many of those same customers are still willing to spend on smaller things: little treats, convenience, self-care, entertainment, or simple indulgences.
That’s exactly why having a strong entry-level offer is such a smart move right now.
Examples of Lipstick Items Across Industries
Health and Beauty
It’s no surprise that the health and beauty industry has mastered this strategy.
It’s where the term originally came from.
But it’s not just lipstick that works.
Travel-size perfumes, sample kits, face masks, and mini haircare sets are all great examples.
These products require very little commitment, but they give people an easy way to experience the brand firsthand.
Once someone spends $10 on a small, high-quality product, they are much more likely to spend significantly more over time.
Restaurants
Restaurants use strategies like happy hour menus, shareable appetizers, lunch specials, and dessert add-ons to encourage more frequent visits.
These lower-cost offerings give customers a reason to come in without a major financial commitment.
A positive and affordable experience often leads to future reservations or visits with family and friends.
Gyms
Many gyms use low-cost entry options like introductory memberships, free classes, affordable challenges, and trial programs.
These offers make it easier for people to get started.
Once customers build a routine and integrate the gym into their lifestyle, they are more likely to upgrade memberships, purchase personal coaching, or remain long-term members.
Salons
Salons can offer discounted blowouts for first-time clients, quick scalp treatments, or hydration services as entry offers.
These require less commitment than a full cut and color service but still allow customers to experience the quality of the salon.
They help people build trust with the stylist and often turn a first visit into a repeat customer.
Consultants and Coaches
Consultants and coaches can offer strategy calls, audits, mini workshops, or downloadable templates.
These give potential clients a low-risk way to experience their expertise before committing to a larger engagement.
Designers
Designers can create downloadable templates, worksheets, or graphic assets and sell them at a low price.
These products showcase their skills and communicate the value of their work.
They give potential clients a taste of the designer’s style, creativity, and attention to detail without requiring a large investment upfront.
How to Create a Strong Lipstick Item
The key to a successful lipstick item is making it feel premium, even at a low price point.
It should feel valuable.
It should feel like a small treat or indulgence.
It should never feel like a cheap or throwaway product.
A strong lipstick item creates delight for the customer.
That means the packaging, presentation, and overall experience still need to reflect the same quality as your higher-ticket offers.
If it feels cheap, customers may assume the rest of your brand is cheap too.
And that can hurt your ability to convert them into repeat buyers.
As you can see, lipstick items can work across a wide range of industries as an effective way to introduce your brand and get more people through the door.
What’s one way you could create a lipstick item in your own business?
That’s going to wrap up this week’s episode of Honestly, It’s Business.
Thank you so much for joining me.
If you haven’t already, make sure you’re subscribed to the channel and turn on notifications so you get notified whenever I upload new episodes of the podcast.
Check out wicky.co to learn more about our services and I’ll see you next week.
Love you, bye!
