Sell More This Season

Frank Fulco, BSG East, Sara Jones, Joico/ISO, Neil Ducoff, Strategies, Dennis Lubin, Aquage

More services. More products and promotional sales. More satisfied clients. More jingle in your jangle.

Do the right things and comfort, joy and financial gain can be yours this holiday season. Frank Fulco is sure of it.

"My wish for salons and stylists this year is for them to see the opportunity that exists to be successful," says Fulco, vice president of Beauty Systems Group East. "So much of what we read and hear is about how the economy has challenged business owners and consumers. Stylists are bombarded with negative information. But 90 percent of the population is still employed. And our customers are still looking for someone to help them with their needs."

The biggest opportunity for salons this holiday is to sell-through at the retail level, says Fulco.

"Salons can make up significant ground on any service revenues they've lost this year by focusing on products and promotions."

Goals and Expectations

Sara Jones, Senior Vice President and General Manager Joico and ISO, also sees the necessity of increased retail sales and add-on services.

"Set retail goals for each team member, and track results every day," she says, and target at least a 20-percent increase over last year's holiday retail sales.

Jones also recommends a salon-wide "color analysis" to determine how and where to include add-on services. "Every client should be offered a shine treatment, like ISO's i.Luminate demi-color clear gloss."

Industry coach and business consultant Neil Ducoff, author of No-Compromise Leadership and CEO of Strategies (strategies.com), works with salon owners on business planning year-round. He admits he sees a difference in behavior going into Holiday '09.

"There's a heightened sense of urgency to hold everyone in the salon accountable," he explains. "If a salon sells retail products, then everyone sells and follows the system, period."

Ducoff agrees with Jones that goal-setting is crucial, and recommends salons have daily huddles to discuss the focus for the day and where the salon needs to be in reaching its service and retail goals for the day, week and month.

Innovation Still Sells

"Even though consumers are being more prudent with their disposable income, people will purchase quality and they will pay for innovation," says Fulco, who continues to see demand for premium-grade professional appliances. "Specialty appliances that are quieter, faster and more energy-efficient are flying off shelves."

Limited-edition packaging is also very popular and flatirons remain hot. High-end treatment oils and products that reduce drying time are other examples where price-point doesn't seem to matter. 

Show and Tool

Salons can leverage the time they have with clients.

"Being able to demonstrate exactly how to use the product or tool is a great advantage," says Fulco. "Salons can position themselves as an image resource center. You can't get that at a busy Wal-Mart."

One innovative retailer Fulco does think salons can borrow inspiration from is Apple, specifically the Genius Bars at their stores. "You can sign up for 30-minute appointments where they will teach you how to use any device, program or application."

Imagine creating a system where clients can book 10-minute appointments to get coached on how to use appliances, style their hair, apply make-up, etc. It's an extension of service and experience, and sure to translate to higher sales.
Another twist on the Genius Bar concept is a new salon trend: The Tool Party, which can be hosted for staff or clients. The idea is to set up a "buffet" of appliances and styling tools, with a block of time where everyone handles, experiences and learns about each one.

Mary Swank at Simply Swank salon in Hudson, Ohio, held a Tool Party for her team recently. She worked with her distributor for stylists to receive 20-percent off any tool they wanted to buy, and sold $2,500 worth in two hours.

"It's the experience thing," says Fulco. "I have seen salons that host Tool Parties for clients averaging $1,800 to $2,000 in retail sales."

Samples and Value

There is one benefit to the recent bout of appointment-stretching: Clients need take-home products more than ever. Sampling helps "build the bridge" to encourage clients to invest in the proper products they need to maintain their style or protect their color. So do value packages.

"People like to buy things that are on sale, and clients like to buy from their salons," says Dennis Lubin, President and CEO of Aquage. The consumer survey presented by PBA (probeauty.org) earlier this year proves that pretty clearly. So we try to make it easy for salons and stylists."

"Easy" means offering an assortment of gift packages, promotional values, travel sizes and samples.
Hint: Fulco says salons can get more involved in sampling in 2010 by asking their BSG sales consultant about the Retail Ready Campaign.

Merchandising Is Key

Effective in-salon merchandising and display depends on the client experiencing the product. To help encourage salons to get their holiday offerings and gift promotion packages out where clients can see, touch and learn about them, BSG is offering a free Holiday Retail Booster display to salons that purchase $800 or more in holiday products.

"We're fortunate that we work with great product partners like Joico, Aquage, OPI and others that invest significantly in custom promotions and merchandising options for our salon customers," says Fulco. "Joico has worked with us this year to put together a complete in-salon kit with shelf-talkers, samples for stylists and clients, and gift-with-purchase items. Aquage is doing terrific things on their website (aquage.com) to educate salons on how to plan and set up displays around their promotional offerings."

It's all about power merchandising, adds Lubin. "All of us want salons to have the right tools and ideas to help motivate clients to buy. We also want them to stock enough of the promotions to be effective."

Do these things, and it won't take much to build salon profitability, says Lubin. "If every stylist can sell two more products a day, they can really impact the bottom line."

No salon really needs just another bottle of shampoo, says Fulco. "But every salon needs another bottle that is going to sell. Retail is the source of increased cash-flow for the salon right now, and we-Beauty Systems Group and our brand partners-are the source that can help salons sell-through."