Don’t Cut Your Profits!

Discount Salon Coupons

Discount Coupons

Not only is it a tough time in the beauty industry to keep your income between government taxes, product costs, insurance, rent, advertising, visa/banking fees not to mention rent and everything associated with keeping the doors open now we have another cost…. SEVERE competition with a discount salon product retailers.

If you do not  have one yet in your neighborhood,  you will…. If you do than YOU KNOW.  They carry all the national brands that salons use to be exclusive to carry.  They are able to purchase in bulk (meaning thousands of the same product) to get a severe cost decrease that salons cannot ever compete with.  They offer coupons upon coupons and have mass media campaigns that spend thousands analyzing your clients and their spending habits.  They duplicate everything they do so they are very streamlined and accurate on inventory, costs, everything….

So, knowing all of this, how does a salon (especially a smaller salon compete or even stay in business?).  We know that costs soar for salon owners everyday.  We struggle and juggle so much as technicians and owners to obtain and KEEP our clients.  It is very very hard to retail for some to begin with and now it seems that some technicians are just “throwing the towel in” and simply giving up trying to retail.

Simply said:  DON’T GIVE UP AND DON’T GIVE IN……….  This is not when the saying “if you can’t beat them join them” works.

We as technicians and owners need to again reinvent ourselves.  We need to find ways to continue to prosper and grow.  We cannot honor coupons that give you money off a purchase of say $10 if you end up with zero profit just to think you are surviving…. You won’t.  Eventually when you realize that you are giving your product away (remember some salons have commission and usage paid on these products as well as theft and waste to be added in), you will end up with zero.  How can zero pay your rent?

  • Carry less inventory but USE and RETAIL the inventory you sell
  • Educate your staff on what the product really does and then EDUCATE your client
  • Start a rewards point system or any other program that lets your clients know that you appreciate them spending their dollars with you
  • Take advantage of vendors “deals” even if you have to purchase more and offer the “deals” in different months if they are a great offer.  (shampoo/conditioner products have a shelf life)
  • Purchase products that are new or not in the larger retailers (at least for now- when they become known then they will be wanted by the larger retailers)
  • Private label a few products to offset your other products and have a much larger markup to offset costs
  • Have in-salon contests with your staff – make sure it is not ALL the time – burnout sets in quite frequently
  • Work with vendors who will work with you financially.  They too are struggling in different ways and I am sure that they would rather sell something than nothing – if you ask them and you are dedicated to them sometimes they can throw in a promotional item when you place larger orders … Use this to offset costs by retailing or by having contests

Remember that simplicity is key……. The less you have the more you may sell.  You DO NOT have to stock EVERY new and upcoming product.  Your client’s would rather have less to look at than more.  I know that sounds surprising but too much of anything can be exhausting….. SO, Stay simple……

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