Chapter 9 Merchandising in Your Salon and Spa

Chapter 9 Merchandising in Your Salon and Spa © Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved.

Merchandising Terms  Merchandising—the total of activities related to selling all goods, services, and retail items that one might find in a salon and spa  Gross sales—total amount of money taken in by the salon and spa during the year

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Merchandising Terms  Net profit—the difference between the cost of goods and services and their selling price. – Labor would be part of the cost of a shampoo/style service as well as the shampoo and hair spray

 Real profit—the amount of money left after all bills have been paid

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Main Steps in Merchandising  Getting customers into the salon and spa  Giving customers what they want  Selling/servicing customers, needs

© Milady, a part of Cengage Learning. Photography by Dino Petrocelli

© Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved.

Getting Customers into the Salon and Spa  What makes a customer come into a salon and spa? – – – –

the location the appearance the marketing (Web site, print work) good recommendations

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Planning  What type of customers are you looking for?  What type of customer currently comes into your salon and spa?  What types of businesses are near your salon and spa? What is their traffic pattern?  Can you tie in with their marketing program for the benefit of your salon and spa? © Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved.

Planning  Do you wish to change the type of customers you already have, or do you just wish to add a few more?  Should you consider changing your location?

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Salon and Spa Appearance

– clean windows – attractive displays (changed every 3 weeks)

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 Attractive windows and doors

 Waiting (retail) area well-lit and open, so a passerby can see into the salon and spa at night

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New Client Promotions  Discounts to attract new clients – discount prices through services – offered to the new clients on their first visit to the salon and spa or a free retail gift with the first hair or spa service

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Meetings and Training Seminars  Hold staff meetings at least once a month – owner/manager may lead the meeting – a guest stylist or teacher speaker creates excitement – meetings can last from about 30 minutes or a few hours – attendance should be mandatory for all staff members – meetings are well-planned, interesting, and interactive © Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved.

Meetings and Training Seminars  Meeting topics – – – –

human relations and communication salesmanship new products and service techniques service and retail sales results

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Electronic Media  Training programs are offered in various electronic formats from salon and spa education companies  Subjects include technical trainings and client-service training  Training aids can stimulate lively discussions

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School Demonstrations  A source of future staff and customers  Know your audience  Presentations need to be relevant to your audience

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Using the Web  Source of marketing – link yourself to multiple places online so that your information will pop up in search engines, yellow pages, online networking, etc. – you want your information to be relevant to the places to which it is connected – web host providers and/or information technology consultants can be a great resource in helping you to maximize your visibility © Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved.

Word of Mouth  Word of mouth is the best type of marketing  If your salon and spa has a customer who has sent you a client, be sure to acknowledge him or her – a thank-you note – a small gift – a complete rewards program

 “Bring-a-friend” promotions © Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved.

Giving Customers What They Want  Clients are looking for two things—service and satisfaction – greet the client immediately, whether it is his or her first or hundredth visit – should the person have to wait, offer a magazine or a cup of coffee to help pass the time

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Giving Customers What They Want  Listen to what the client wants – the first visit should be the time for the client to get to know the salon and spa and the technicians – the first and main objective of this visit is to gain the person’s confidence and to get to know one another

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Ask the Right Questions  Ask questions that enhance the customer’s experience  Confirm that you will be asking a few brief questions to better service the customer today  Establish a time line: “When was the last time you received a haircut [wax/facial etc.]?” This will allow the customer’s mind to focus and will give you valuable information about his or her patterns © Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved.

Ask the Right Questions  “What did you like about your last haircut [hair color, manicure, etc.]?” This will give you valuable information about what works currently for the client  “What do you not like about your [haircut, hair color, manicure, etc.]?” This will tell you what needs to be changed

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Ask the Right Questions  “What would you like to change today about your [haircut, hair color, manicure, etc.]?” This will tell you what the client sees as his or her needs and what the client wants to change  “What are your currently using for products?” This will allow you to understand what products the client is currently using, and how to better serve his or her product needs  “How is it working for you?” © Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved.

Ask the Client to Return  The technician should always invite the client back to the salon and spa  If the client says he or she does not want to rebook, help him or her see that it is in his or her best interest to book now to secure a time that works for him or her  If the client still prefers to call in, the technician or front desk associate should give the technician’s card to the client © Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved.

 When you are served, not sold, you feel welcomed, great, happy, willing to buy, and important  It is about education and helping clients get what they want, not what you want  Motivate your technicians  Motivate your front desk associate © Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved.

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Selling vs. Servicing Customers’ Needs

How to Purchase, Market, and Sell Retail Items  Purchasing should be done by one person  Items purchased should fall into two classes: – usable items (back stock) – retail items (items for resale)

 The inventory sheet – used to order accurately – amounts should fall into a pattern © Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved.

Selecting Retail Lines  Do not buy into too many product lines.  Be sure the product lines are popular with your staff, as technicians usually sell most effectively when they understand and like a product.  Be sure the product lines are sold exclusively to salons and spas  You are buying into a distributor, not just a product line © Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved.

Retail Items  Ask yourself: – who are my customers? – what will their purchasing needs be? – are these products only sold in professional salons and spas? – what educational support system will the distributor offer?

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Yearly Promotions  Once you have established your customers’ needs, you are now ready to set up yearly promotion programs  You must adapt to your own area and clientele  Make a long-term commitment, and start small, to see if it will work without risking too much of your capital  It is a good idea to use a basic, consistent template each year © Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved.

Marketing Retail Items  Most of the promotion of services and retail items is done on a personal basis in the salon and spa  The more personal an approach, such as cards through the mail and/or e-mail, a telephone call, or talking directly to a group, the better

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Specialty Items  Clothing and/or jewelry should be sold in a separate area  Fine jewelry should be placed where it can be watched at all times and the inventory count maintained

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Important Rules for Merchandising  Know your customer  Know what you are selling  Know who is going to sell it  Know how much it costs and what kind of profit you intend to make

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Summary  A salon and spa must launch and maintain an active program to get new customers in and retain them as customers  The three steps in merchandising are: – getting the customer into the salon and spa – giving customers what they want – selling customers what they need

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Summary  All purchasing of back-stock items and retail items should be done by one person. Choosing a retail line is a very important decision; a good distributor can help with promotions and education.  To merchandise in a salon and spa, know your customers, know what you are retailing, know who will retail it, and know your costs and what kind of profit you will make. © Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved.