We all know that retail sales are down and it would be easy to blame the current downturn on the ever weakening U.S. economy but that would mask the "real problem' that many salon owners are experiencing today. The retail sales decline is actually a symptom of a much larger problem that finds its roots in a well-known marketing axiom.
Over the last 8-10 years, this axiom has been ignored because of the almost instant success of the supermarket model of selling retail products to clients. I am referring to product differentiation; the "carry 3-5 nationally recognized product lines and the clients will come looking for the products' model has been in place in many salons since the late 90's.
It is now clear that this model is broken, like many of the models that were developed during the last economic expansion. Of course, I'm not implying that we can forget about retail sales ever increasing again. We just need to get back to the proven principles of the axiom that I spoke of earlier.
The real reason that clients no longer buy salon retail products in great numbers is because most of them have no idea of the differences between a Redken shampoo and Pantene! I'm not trying to pick on Redken in particular, because the same could be said about 90% of the product lines out there. If the client has no idea about the "value' of the product then they fall back on the only thing that is very clear to them and that is PRICE.
So these days, clients are opting to go to their local supermarkets to buy the Pantenes of the world rather than buy the more expensive products that you have for sale in your salon. Now, most of you are probably saying "Well, my stylists don't want to sell retail products'. And I absolutely agree with you. Very few stylists can sell anything, so don't think that hassling staff will alter your retail sales in the long run, because it will not.
As the salon owner, you need to get your clients to "ask your staff' about the products. The best way to do this is to create curiosity in the minds of the clients. Here is an example of how to do this: Go to a local drugstore or supermarket and pick up 10-15 different popular shampoos and conditioners. Set up a small display in your salon that has all the store-bought products on one side of the table and your best products on the other side. Then put a sign in the middle that says "Ask us why using these products will ruin your expensive color'. This is an eye-catching way to create curiosity and get your clients talking.
Have the display set up in your waiting room. While the client is waiting for their appointment, you will see them visiting your new display. You should include a simple 1-page document that tells the client why your salon products are the only products that they should be using on their hair. We all know that if a person is spending big money on hair color, they will not want to ruin it by using a cheap shampoo or conditioner.
Once the client fully understands the "value' of the more expensive product, they can differentiate the products on their own. Your retail sales will increase without the need of turning your stylists into salespeople. You will also be able to cut back on the total amount of retail products you are carrying in your salon, because there is no longer the need for a shotgun approach to selling retail.
Try this idea out and get your retail sales moving in the right direction again!
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