Tuesday, 6th January 2009
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Are You Selling Out?

Retail sales should account for at least 25% of your salon's turnover and are an important part of the success of your business. Are your employees selling you short?

Are they reluctant to close that sale? Is your own fear of selling preventing you from getting in on the action? Your retail sales strategy needs to start from the top with the salon manager or owner.

In this article we ask Charmaine Patch of L'Oreal Professional for some practical, no-nonsense advise on how you can develop and grow your retail profits.

First, understand your existing resources:

People First

You don't need specially trained sales staff to develop the retail aspect of your business. Your stylists, manicurists and aestheticians all make up a powerful sales team for your salon. They're all consumers themselves, naturally ready to share the latest finds with their friends. And as friends, your clients are always ready to try a tip from a friend. Every member of your staff, from shampoo juniors to senior stylists, can recommend, endorse, and yes, sell your retail products.

Know Thy Product

Worried that you can't afford to send all your staff off for training on every product you stock? Well, you don't have to pay for training. "Manufacturers and distributors support salons with on-going retail training" says Charmaine. "Suppliers have a vested interest in your ability to sell their product line and many suppliers offer free training either on-site or on their own premises." So why not get the suppliers into the salon, tell them in advance what you want out of the class, and let them train your staff about their products and the art of selling them?

And remember - product knowledge doesn't mean simply learning the supplier's spiel. In our business, it also means having a subjective understanding of how something works and under what conditions. Encourage your staff to try the products for themselves, and to learn the specific benefits and limitations of every single product you carry. This will help them tailor recommendations to specific clients' specific needs.

If you're promoting yourself as someone committed to client care, you need to really know and believe the product will do what the manufacturer promises. Be able to say to your client, "I use X, but Tonya and Angela - who have hair like yours - use Y and swear by it." This says to a client, "You don't have to use what I use, we can find something that is suited specifically to your needs."

Pay And Display

Charmaine maintains that the way in which retail products are displayed in a salon makes all the difference. Displays should be eye-catching and exciting so they can immediately capture the interest of the client who'll want to take a closer look. "Space is often tight in salons, so you may think you simply do not have the room to carry and display several product lines. In fact, not a lot of space is needed to sell retail products; it is not the sheer size of a display that counts, but rather how effectively it is used." Follow the psychology used by the supermarkets, and look for options at eye-level. The average British woman is between 5' 2" and 5' 6" tall. Keep the products you want them to buy on shelves at chest level and remember to keep these clean and uncluttered. Keep the display fresh and inviting. Rotate products to showcase seasonal or promotional items. If you have the space, you can make a theme display, e.g., an oasis of sun protection products in summer, or umbrellas and anti-frizz treatments in the drizzly months.

Selling Client Care

Now you might be thinking, "I build relationships with my clients - I don't want them to think all I care about is sales." Charmaine's response is simply, "If you've tested the products and believe in them, stop thinking in terms of selling, and start thinking about total client care." We are often our clients' confidants, and it's simple enough to chat about products while you actually have your hands in clients' hair, or on their skin. You want to encourage their sense of being "special" and sustaining that feeling of "I'm worth it" between salon visits.

Listen To And Understand Your Clients

Accept the fact that some clients simply don't follow a maintenance regime between salon visits, and these clients may be resistant to what they consider 'unnecessary' expenditure. "But any client will eventually resent any expenditure they've felt coerced to make", says Charmaine. Try asking a client "What kinds of challenges are you having with your hair?" It's an open question that allows the client a chance to talk openly, giving you all the clues you need to recommend the right products. A client with dry hair for example, might welcome your recommendation of a new conditioner that's just right for her hair type. A satisfied customer is a repeat customer, to say nothing of free advertising, so learn to recognise those who browse but never buy and to make more efficient use of sales efforts. If you are computerised, you may want to invest in a customer database. Get your clients' birth dates so everyone gets an annual special promo - just for her (or him)! You can also track your clients' purchasing history, then plan and target promotions more effectively.

Incentive Programs or, "What's in it for me?"

The promise of some kind of bonus or added benefit is tempting for all of us.

For staff: You may be able to get prizes from suppliers, or you may feel less conflict of interest if your prizes are separate from industry gifts. If you set targets for staff, remember to be fair and to index targets to client contact. If you are concerned your staff may become overly competitive, try group-based incentives as well.

For Clients: There are any number of client incentive programs you could adopt, from loyalty cards to "buy 2 get 1 free" to gift bags (and other accessories) to "bring a friend, get a manicure" - the possibilities really are almost endless!

For you: You've set targets for yourself and your business, so remember to treat yourself to something special when they are achieved, too!

Set Your Imagination Free!

If you've read this far, you know how easy and affordable it can be to grow retail profits for your business. Now it's time to open up your mind and let your imagination play with the ideas. Write them all down, and really consider them before you decide to reject them or put them into play. Don't be afraid to make mistakes, but do learn from them. Expect the unexpected.
Dare to dream the profit, and then make it happen!