Business panel: is your business retail confident?

Uncover the secret to generating a successful retail income stream for your salon by following Ryan Fox’s expert tips.

Retailing in the salon has always been a difficult area to improve and most salons generate less than 10% of their income from product sales. However, there are things you can do to increase profits. All of your clients are in the market for hair products from shampoos to conditioners and they will be buying these products from somewhere, so why not from you?

What type of retailer are you? Firstly, you need to decide what type of retailer you are and the target market for your salon. It’s wise to aim your retail offering at the specialty or exclusive end of the market, because you will be able to offer products that clients can’t get elsewhere.

Product offering These types of clients want more advanced product options with special features and a higher level of service. You are in the perfect position to be able to offer this but you must offer the whole package. This means choosing the right product range to suit the image of your salon and your clientele. Most professional product ranges are exclusive to salons, so choose a brand or range that clients can’t buy on the high street and try to agree some exclusivity with your supplier so the salon across the road can’t stock the same products.

Special features Professional salon products contain better quality basic ingredients and specialist ingredients that have a genuine purpose. It’s really important to highlight these features when explaining the products to your client, as this is what makes them different and will justify the higher price point.

Pricing strategy It’s pointless trying to compete on price with high street and discount retailers because you won’t win. Instead price yourself competitively, which usually means using the recommended retail price (RRP). Focus on other elements of the marketing mix such as the quality of the products, your client service and the overall salon experience, which your client will be willing to pay for.

Product knowledge The team must get to know the products inside and out, so they can provide the higher level of service that is expected when selling professional salon products. Your team should be able to highlight the special ingredients and features of the products. They will also need to know which products to recommend for each hair type or condition and how to use the products to achieve different looks. It’s all about results for your client, so if the product doesn’t do what you said it would, they won’t buy it again and you will have lost some of your credibility.

Full service The strength of your relationship with your client and your personal recommendation is the key to the sale. That’s why it’s really important to ask open questions in the consultation about what products they use and their homecare routine. Use this information along with your in-depth knowledge to recommend the right products at the end of their appointment.

Get physical Some clients will want to use your knowledge to choose the right product, which they will later buy online. Remember you have the product right in front of them, so use it on them and show them how to create a new look straightaway. If they can feel the product, smell it and see the results in their own hair, they will be more likely to buy it. If you take it to reception for them as well, all they have to do is pay for it.

Sell the sizzle You may have heard the phrase ‘sell the sizzle, not the sausage’ before with regards to the reasons why people buy products of any kind. It’s true of salon retail products because people buy the benefits of the product rather than the features. This means as well as knowing the products and explaining the features (the sausage), you and your team must also tell the client what that means to them and how using the product will benefit their life.

Of course, not everyone will buy from your salon, but many will. Look at it like a spectrum of colour. A third of your clients are reds who will never buy a professional product, a third are yellows who might be persuaded if the right products are recommended correctly and the remaining third are greens who are desperate for you to tell them what they need. You won’t know where your client fits on the spectrum until you’ve given everyone a chance, so consistently give the right advice to every client and you’ll find more will start to see the light!

Ryan Fox is a Hair & Beauty Salon Consultant who improves salon performance through training and innovation. His course Retailing Confidence, trains stylists to implement these skills and is available at umbrellaconsulting.co.uk.