(originally published August 2010)
Did you know that salon hair-care products make up a substantial one-third of the hair-care market, comprising $2.8 billion in sales in 2006? According to the 2008 report “Business of Beauty: Maximize Your Profitability,” commissioned by the Professional Beauty Association, an additional $300 million in growth in salon-based products is projected by 2012.
Unfortunately, one of the biggest threats to this potential growth is the continued rise of mass retailers that lure clients by providing easy access and often-false promises of lower prices. Often, the clients do not understand that buying professional products directly from the salon is the only way to ensure product quality and access to the expert advice of the salon professional.
Professional Beauty Association’s (PBA) report refers to retail as an important profit driver for salons, as it can contribute most directly to overall profitability. Without the marketing and advertising budgets afforded to mass retailers, stylists in many salons must take on the role of several job positions: marketer, salesperson, educator and product expert. When salons educate and empower their stylists to fully embrace each of these roles, it not only helps ensure the success of the salon and stylist, it derails longtime industry myths about selling. These myths are what keep salon retailing from being the profit driver it can and should be. Here are several things to keep in mind when encouraging your team to beef up sales efforts and educate customers on the value of purchasing products directly from your salon, not the drug store down the street. (more…)