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

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

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

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

© Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved. Salon and Spa Appearance Attractive windows and doors – clean windows – attractive displays (changed every 3 weeks) Waiting (retail) area well-lit and open, so a passerby can see into the salon and spa at night © Milady, a part of Cengage Learning. Photography by Dino Petrocelli

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

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

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

© Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved. School Demonstrations A source of future staff and customers Know your audience Presentations need to be relevant to your audience

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

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

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

© Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved. 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. Selling vs. Servicing Customers’ Needs 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 © Milady, a part of Cengage Learning. Photography by Dino Petrocelli

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

© Copyright 2012 Milady, a part of Cengage Learning. All Rights Reserved. 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 , a telephone call, or talking directly to a group, the better

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

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

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

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