From a Hair Salon Owner
Great Article on Hair Salon Retail
As a hair salon you have seen many different product ranges over the years. I want to share with you some selling experience buying in stocking and selling retail. I will also show you how to look at what exactly is profitable to stock and why. Many salon owners stock retail products not knowing the consequence of being over stocked and not having a salon selling strategy.
Let’s start with which products to stock, as a salon owner I imagine you feel like me and want to stock a product range that is only in your hair salon in your locality & complements your team. Most salon owners I speak want to offer their customers something they cannot just pick from the supermarket shelf. This is a good strategy for the following reasons:-
- Makes your salon standout from the competition
- Can drive extra custom to your salon from being one of a few local area stockists
- Adds value to your existing offer
- Associates your salon with that of the brand you are selling
- Your salon can be listed on the brands website for extra exposure and involved inside there marketing activities
The above are not only positive points, but they are also business derivatives that can go towards surviving a recession.
Once you have selected your chosen range using some of the points above. The next most important factor is margin. Margin is extremely important for success and it’s also linked to product range size how much stock you buy in and how this is linked to your sales lets not say strategy but frequency.
I will explain; let’s use the example of a large shampoo treatment range of products. Each product retails from £8 to £18 the margins are say 30%-40%. The full range contains say 25 models so to buy in the 25 will cost approx £300 stocking one of each (average £12 per product). Once all sold a profit of between, £225 to £300 can be made. The profit is only made after the full 25 are sold, and is on a running total basis up to that point. So the point I am making here is the in order to be able to justify and make back the initial outlay you must have a good record keeping system of sales to stock I would recommend on a daily basis.
If you and your team are consistently selling on a weekly or monthly basis you will always see a turn of profit with your stock held figure. But if you are finding problems with cash flow or excessive stock then these records are a good way to focus down stock and keep a healthy turnover of stock and more importantly margin.
With the advent of recession, whether recession is still in place we have moved into an age where more and more people are conscious of their finances. The high street and especially hair salons are under a lot of pressure from the internet and larger retailers. A common retail problem is a customer has found the product cheaper and prefers to buy from them or would like a like for like match. The answer to this is in the points above make sure you choose a product that’s exclusive as possible for the best success. Another option is add a treatment of or service by way of a gift voucher with the product to seal the deal and avoid the customer taking their business elsewhere.
Watch this space for my next article “Hair Salon Selling Retail Tips”