Retail sales within salons are already a multi-billion dollar industry and do the most to drive salon profitability, agree experts. But currently, salon retail sales only account for 7% of industry sales, a number that many within the industry feel can be improved upon. According to the recently released report by the Professional Beauty Association (PBA), Business of Beauty: Maximize Your Profitability, for a typical salon with one million dollars in overall revenue, increasing that retail sales number from 7% to 10% of overall sales means an additional $30,000 in revenue and $15,000 in incremental profits. Listening yet? “Retail is the missed opportunity for salons,” says Samantha Alvis, director of PBA Leadership Operations. “Seventy-one percent of customers say they weren´t given product recommendations on their last visit to a salon and, forty-four percent of those said had someone made a recommendation, they would have made a purchase that day. These are people who are sitting in your chair for one or two hours who aren´t being given what they need to recreate their styles and care for their hair properly at home.” Mia Szymanski, Senior Hair Designer for JCPenney Salon in Spring Hill, F.L., and Matrix Artistic Educator agrees, “My clients will be happier with my work if they use the products I suggest so they can recreate the techniques I have shown them, their color results will last longer, and their hair will be healthier. It actually helps with client retention more than we realize.” Philip Pelusi, owner of 14 salons, educator and product manufacturer explains it this way: “If you want to be the number one person when it comes to your clients´ hair, then it is imperative that you show and tell how to use professional products. It´s outrageously short-sighted not to embrace that opportunity. If hair is the fabric you work with, then you can´t separate the products from the service because the products are how you care for the hair and recreate the style. Hair is our fabric and needs a tag on how to care for it — no client should leave your chair without the proper product recommendations!”
Distributor To Salon Owner
Alvis recommends that salon owners begin a dialogue with distributors about how to better promote the products. Distributor Edwin neill, president of neill Corporation, agrees and says he´s begun discussing the PBA study in his sales meetings already. “Distributors are the direct point of contact the stylist has with the product and the manufacturer. It is their job to give all the information about a product so the stylist knows what to recommend and why.” The manufacturer´s role in promoting retail sales is in creating the brand awareness and coming up with the marketing direction. Joico´s Sara Jones says, “If we don´t provide the materials on the products, there´s a chance salons will miss an opportunity to sell it.” Szymanski adds, “And then it´s the stylist´s job to actually read that literature and try the products so they know exactly what they do.”
Salon Owner To Stylists
Salon owners and stylists agree that retail sales can be a tricky subject for many reasons. Product line restrictions and special manufacturer promotions can make it hard for stylists to recommend products they feel strongly about. But Pelusi counters that if a salon sells too many lines with every stylist selling a little bit of everything, then there´s no continuity. “As a stylist, if you really don´t like the lines a salon offers, then don´t work there. Ideally, that´s why you go to work there. The salon owner needs to take a stand on the product lines carried and stick to it.” In addition, the choice of lines makes a difference in how you compete with other salons, drug stores, and online discounters, explains Pelusi. “If you sell lines that are carried everywhere, it´s harder for clients to wait to buy it from you. On the other hand, if you´ve established yourself as the expert, your client will only buy products on the recommendation from you! You can´t beat discount Web sites and stores like ulta, so try exclusive lines or try to support companies doing the right thing.” Staff meetings that include all salon employees are key in solving issues, neill says. “Well-run salons have regular meetings when a distributor representative can come and do a class on retailing methodology. Also you´ll want to create a philosophy for the stylists and staff to believe in so sales come more naturally.” Szymanski adds, “If it were up to me, I would also do role-playing during staff meetings so everyone could practice how to introduce products naturally and we could discuss products and learn from each other.” Another suggestion from neill is to encourage salons to create internal incentives to excite stylists to promote product sales. “Commissions often aren´t enough. A little competition among the staff with bonuses for achieving goals can be more effective,” advises neill. Pelusi encourages clients to bring in products that they don´t like and they get a discount toward a professional product recommended by their stylists at his salons. “Then, we take all the trade-ins and donate them to a shelter. It´s a win-win-win solution,” says Pelusi who adds, “you´ve got to get creative with it.” Providing additional education or tools for stylists with the highest retail sales in the salon is another motivator, says neill. Szymanski adds, “At our salon, we have monthly contests and I actually won a blow-dryer. I was thrilled because mine had blown up recently!” Also, letting stylists know what is expected and why it´s important always works. “We get monthly productivity evaluations and retail is factored into our productivity. The goal is to sell 25% of our gross in retail,” says Szymanski.
Stylist To Client
“One of the things that came out of the PBA study is that clients want to hear about products during the service. not before. not after,” explains neill. Szymanski agrees, “I work less on ‘selling´ and more on including the products as a natural part of each client´s service beginning with the consultation. That´s where needs in a client´s routine become uncovered and it´s an opportunity for me to teach proper hair care. Throughout the shampoo, the styling and the finishing are all key times to bring up how and why I am using certain products.” Szymanski also has her own special tricks. “One reason people choose to buy products is for the fragrance — if you use it, show it and then give it to them hold — they smell it and they buy it. get their senses involved.” Another thing to remember about clients, advises Szymanski, is that they are very price conscious nowadays. They are distracted by “2-fer” deals instead of knowing what their hair really needs, so educate them before they see the ‘deals´ or point out if one is better for their hair than another. When the service is over Szymanski also walks each client to the checkout and points out the specific products she used on them. “Clients can forget if I don´t show them where it is and it´s such a simple thing to do!” “The buck stops at the chair,” says Pelusi. “We stylists create the sale. Once we´ve taught a client what they need for their hair, we don´t want to lose the residual purchase either. Clients are not your friend as long as money exchanges hands. They really want to know about their hair so be the expert they need. You say you don´t like to sell? You are a commercial artist and if you want to be successful, you have to sell your craft, your skill and your expertise whether you like it or not!”
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