Running your own salon or barbershop (or several) is a major accomplishment, but how will you grow if you continue to do the same thing year after year? While you may be concentrating on generating income from top-notch hair and barber services, you’re missing out on a significant revenue stream: retail products. A smart strategy can help you meet your profit goals, grow more contact points with clients, and take your business to the next level. Here are four convincing reasons to add barber and salon retail to your inventory list. The only thing you have to lose is extra cash in the bank.
1. Increased Revenue
As a general rule of thumb, 12-15% is the average percentage salons and barber shops calculate for retail revenue. Still, it can easily be upwards of 20-25%, depending on how aggressive your goals are and the size of your business.
To check if you’re on target, use this simple formulation: Total Retail Sales ÷ Total Revenue (Service and Retail Sales) = Percent of Revenue from Retail. Remember to exclude gift certificates, membership reward cards, or anything else paid for in advance, as this can misrepresent the results of the formula.
Categorize Your Inventory
While it will take a little legwork initially, organizing (and separating) your product inventory from your services is vital. For example:
- Treatment Products
- Styling Products
- Body Care
- Home Tools and Equipment
- Gift Bags or Packages (Likely a seasonal item)
Properly Enter Your Inventory
When keeping track of your retail product sales, transparency is critical. To make it easier on yourself, invest in a salon/barber and accounting software to help keep track of your inventory. Accuracy is vital because you need to consider that you’ll now be responsible for Inventory tax — an additional property tax against the value of your business's inventory.
2. An Elevated Reputation
The reputation of your business shouldn’t stop in your chair. Knowledgeably speaking to your clients about the products you’re selling, including how they can work to their advantage, elevates the professionalism and notoriety of your establishment.
3. Increased Client Retention
Sure, the skillset you put into your services is vital to growing and retaining your customer base — but another ingredient in the secret sauce to success is retail. With so many haircare and shaving products on the market, your clients will appreciate customized expertise.
If you want to know how to sell products in a salon or barber shop, it’s all about gaining trust. Focus less on the sale and more on the products' benefits — specifically for your client’s hair, beard, etc. Provide as many details as possible, whether eliminating frizz, extending the life of color-treated tresses, or eliminating razor bumps. Of course, using the products during a service is a fool-proof way of testing them out!
Retail Product Displays: Keep Them Interesting
Keep your retail displays fresh by changing them regularly, seasonally, or when introducing a new product line or launch. It intrigues the client while showing that you’re keeping your business relevant. Work with your distributors on product incentives to encourage impulse buying while staying authentic and providing value.
4. Client Satisfaction
Satisfying a client goes beyond sending them home with a product. It also requires understanding their beliefs and preferences when making suggestions. They’ll appreciate that you remember whether or not they prefer cruelty- or fragrance-free formulas, vegan products, or have any allergies. It’s not a bad idea to add these details to their file. You’ll always be a professional, but now you’re like a trusted friend, too.
Also, keep your client base in mind when choosing the product lines you will retail. Know your market, or your sales could suffer the consequences.
Business growth comes in many forms, whether you’re increasing revenue or expanding your team. Of course, growth isn’t always a linear journey. There are peaks, valleys, and plateaus along the way, but to help you stay afloat, invest in retail products for your salon or barbershop.Save money and make money by signing up for a free wholesale account with ProStylingTools! Beauty industry professionals with a state-issued license or business owners with a business tax ID are privy to perks like 25-70% off retail prices on our entire catalog and free domestic shipping on orders over $500. There are no enrollment or annual fees, buying requirements, or any other fine print. It’s 100% free, plain and simple.