Grow Revenue & Satisfaction with Products
January 17, 2018
Products are a great way to supplement your service revenue. In fact, they often boast a higher profit margin than those very services. As product sales are not restricted by the stylists’ time, they provide a window of opportunity to increase every customer’s transaction value. Imagine if each client spends an extra $5 per appointment. It may not seem like much initially, but over the course of a year, that could be thousands of dollars in additional revenue.
Beyond the financial aspect, there is actually another significant reason to sell products: customer satisfaction. To keep clients happy and coming back, the salon or spa experience needs to go beyond an appointment. They may leave the salon glowing with delight; however, it won’t mean much if they dread their hair for the next few weeks until the next appointment. By selling quality products that you believe in, they can act on your behalf to ensure that clients are still on the top of the world when they come back.
If you’re going to sell a product, you should be familiar with it and believe in it. After all, the best way to increase sales is by utilizing the recommended product during the appointment. Furthermore, while you may not be ultimately responsible for how they manage and treat their hair at home, it can be a reflection of you and affect your credibility when it comes to any future appointments or referrals.
As every client is unique, a one-size-fits-all product will not suffice. Have multiple products that fit specific hair conditions or types. Offer product lines for varying budgets. Promote seasonal products or bundles. By offering a range of products, you can tailor upsell suggestions to the needs and desires of the client.
Do your customers even realize that products are available for purchase? Rather than simply having a shelf in the corner filled with shampoo and conditioner bottles, create an eye-catching retail display and utilize signage to draw attention to the products in your waiting room. Pull clients’ eyes away from magazines or from their smartphone screen and towards your products. Draw them in and make it easy for them to find the information they want. Think about it from the client’s perspective: what does this product do, is it the right fit for me, how do I use it, how much does it cost, and is it worth the money?
Each salon station should also have a small display, whether on a shelf next to the mirror or even just a few bottles placed neatly on the counter. It should provide a clue that the products are available for purchase, without customers feeling bombarded with sales pitches all around them.
Have you ever made an impulsive purchase? The point of sale should showcase seasonal or sale items that tempt clients to add to their transaction. You can also display a couple popular items that will give subtle reminders to re-purchase a product.
While an attractive display can entice clients to buy, it’s often not enough to make a sale. As you develop a trusting relationship with your clients, you can share your expertise and recommend salon products. Take the time to understand their at-home routines, to “diagnose” their hair, and prescribe a personalized treatment plan. In addition to suggesting the product, take a couple minutes to explain its benefits and show how they can use it effectively.
To establish a long-lasting client-stylist relationship, think beyond the current appointment. When a client purchases a certain product for the first time, follow up with them in a couple weeks to make sure they are satisfied and to check if they have questions. Check with them again at the start of their next appointment as well. Near the end of this appointment, remind them to pick up a new bottle if they’re running low or offer an alternative if it wasn’t to their liking.
It seems obvious, but you need to have the item on-hand to make a sale. On a practical level, this means ensuring that you are ordering enough and at the right time. When you have a wide selection of products, it can be tough to keep count of remaining stock. Fortunately, software programs like Insight are available to help you track inventory and simplify the re-ordering process. Additionally, it will record clients’ purchases so that you may remind them to purchase again or automate a follow-up message. Furthermore, it will enable you to run reports so you know exactly which salon & spa products are selling well and which are struggling to get out the door. With this information, you can routinely consider if the product selection needs to be adjusted.
The additional income from selling salon & spa products is significant without requiring a large investment from stylists. In fact, retailing is an exercise that builds trust and satisfaction which leads back to increased service revenue as well. Thus, retail sales should be a high priority for any growing salon & spa business.
Get ready for the new year with a free 2018 marketing calendar today!