The hot towel effect

Finding the symbol of luxury in your market

Let me explain why a hot towel could be the most profitable item in the modern world. And why it matters for your recruitment business.

I have several decent barbers near my house, and I tend to switch between them fairly regularly. But only one of them - the fancy one - offers to drape a hot towel over my face after my short back and sides.

I say the fancy one, but the only difference I can think of is the hot towel. And I can rationalise why: it’s an extra part of the experience, it feels luxurious, like something I might get at a spa.

But from an economic angle, it’s just a warm piece of cloth. And yet… I’m happy to pay a little more for my haircut because of this little luxury.

You then realise that the hot towel effect isn’t restricted to barber shops. Pay thousands of pounds for an airline upgrade? Have a hot towel. Choose to go to a fancy restaurant in certain countries? Hot towel.

Once we’ve spent a minute congratulating these businesses on turning warm cotton into gold, ask yourself the question: what is the equivalent of the hot towel in your market?

By which I mean, what can you offer your clients that personifies luxury in their eyes and yet costs you almost nothing?

We can be quick to dismiss easy-to-deliver services because they seem, well, easy for us to deliver. But it’s vital that we always look at value through the eyes of our clients.

If you want to explore what your clients really value, simply reply to this email and I’ll explain what to do next.

Jon

P.S. The quickest way to supercharge your profitability is to find the existing symbols of luxury in your market.

Another option is to create the perception of luxury in what you do. Scarcity, exclusivity, celebrity value… if you act like a luxury brand then the sky is the limit for your prices.

If you want to explore what your clients really value, simply reply to this email and I’ll explain what to do next.