How To Create A Profitable Retail Center In Your Salon

A lot of hair salon owners tend to shy away from selling retail products in their stores. This is particularly the case for new stylists as they often find the process to be somewhat intimidating. However, when you take a look at the benefits of creating a retail center, it’s easy to understand why this idea is so popular among premier stylists.

First, it brings in more revenue. Sure, you may have enough clients to generate a nice income, but upselling products can make a huge difference. In fact, if you’re strategic enough, these products may be able to pay the utility bills for your establishment.

Another huge benefit is the reputation that your salon will build. Salons that offer products are more likely to be seen as professional and upscale. Your brand will become known for ensuring that your clients’ needs are being taken care of even while they’re outside of the salon.

Retail centers can also result in client retention. When you sell reliable products that actually work for your customers, it increases the likelihood that they’ll return. In fact, studies show that retail products can increase customer loyalty by as much as 30%.

Now that you’re familiar with the benefits of selling products in your salon, let’s discuss the things that go into creating the ideal retail center. Here are a few tips for the best ways to increase sales, the types of products you should offer, what role your employees should play, and the ideal positioning of your retail center.

How to Increase Retail Sales in Your Salon

If you want your retail center to be a success, then you need to ensure that it engages your customers. Design a space that they’re instinctively drawn to. This is something that supermarkets, department stores, and convenience stores invest a significant amount of money and time in.

In fact, the retail industry spends billions of dollars to accumulate information about their customers. They pay attention to customer habits and patterns so that they can create a space that attracts the most sales. Here are a few strategies that you can use to get your clients’ attention.

1. Eye-Level Arrangements

The world of retailing has a popular saying–“eye-height is buy-height”. One of the first things that you’ll notice when visiting most supermarkets is that they place their premium brands at eye-level. And this helps to increase their profits significantly.

Many salons tend to encase their items in a short display case. However, the key to making sure that your products sell is to place them in your clients’ line of sight. Consider displaying some of your best products on shelves.

2. Red Stickers and Labels

Most people associate red stickers with bargains. You can use this to attract people’s attention. Try placing red sales stickers on your products or red tags on your sales shelf.

3. Complementary Products

One of the best ways to ensure that you sell out of all of your products is to present them as complementary. Specifically, you need to arrange your display so the items that are typically used together are near each other. This means that you can place the shampoo next to the conditioner or the flat irons next to the heat protectant sprays.

4. Dramatic Lighting

A great way to grab your client’s attention is to install dramatic lighting around your retail center. This is something that malls, grocery stores, and convenience stores have mastered. Products usually look better when there’s a spotlight on them.

5. Samples

Another popular retail trick is to offer samples. People can be skeptical about products that they’ve never tried. You can convince them to buy by offering a free sample that they can test out at home.

Consider offering small packets of conditioners, shampoos, oils, serums, and hand creams. If the customer likes it, they’ll definitely be back for more. If not, they may be willing to try something else.

Products That You Should Sell

One of the best things about selling products in a hair salon is that there are a variety of options that you can choose from. And that’s because people are always looking for ways to improve their appearance. Let’s take a look at the types of items that you should consider adding to your retail center.

  • Haircare

Since most of your clients will visit your establishment for hair care services, it only makes sense that you offer hair care products. These are the easiest types of products to sell because your customers will trust your professional opinion. You can offer, shampoos, conditioners, oils and serums, mousse, pomades, heat protectants, hairspray, styling tools, and enhancing creams.

However, it’s vital that you choose quality products. Since your customers are relying on your professional recommendation, they’ll expect a lot from the item that they purchase. In this way, the results they get can be seen as a direct reflection of your brand.

  • Bath and Body

Bath and body products are another great option. Your customers will likely be interested in making sure that their skin remains healthy and beautiful. You can offer things such as lotions, oils, body butter, body wash, face masks, and cleansers.

  • Cosmetics

The cosmetic industry is reportedly worth 500 billion dollars. And it’s showing no signs of slowing down. These are the perfect types of products to offer your clients.

And there are a ton of products that you can choose from. And the list of brands is endless. You can sell primer, lip balm and lipstick, concealers, face powder, highlighters, mascara, and eyeshadow.

  • Jewelry

Many of your clients will be getting their hair done for a special occasion. And there’s always a chance that they may be looking for something that can accent their outfits. In a lot of instances, a nice piece of jewelry will be just the thing that they need.

There are various types of materials that you can offer, from precious metals to enamels. In fact, you may even know someone who handmakes these pieces which will increase their value even further. Consider offering necklaces, earrings, bracelets, charms, pendants, and rings.

Encouraging Employees to Promote Products

While the perfect display can result in the products selling themselves, it’s also a good idea to encourage your employees to get involved. They can actively work to sell these items to each client that they serve. However, there are a few recommendations that you should make when it comes to perfecting their sales pitch.

  • Know the Customer

The benefit of having your employees to promote your products is that they actually spend time with the client. And this means that they get to know more about them. So encourage your employees to learn more about the customers’ needs and wants.

When your stylists begin to understand who your client is, they can tailor their recommendations to that individual. Perhaps the client is having issues with a dry scalp or has flaky skin. In this case, the stylist could offer a hair serum or hand cream that can alleviate these issues.

  • Know the Product

It’s not enough to know what the client needs. Your employees should also be familiar with the products that you’re offering. This way, they’ll know exactly what needs to be recommended.

It’s a good idea to let your clients try the products for themselves. This way, they’ll have first-hand experience and can offer more value when speaking with the customer. Not only will this make the customer trust them more, but they’ll also gain more professional authority.

  • Don’t Go Overboard

One of the most important tips that you should express to your employees is that they should keep the upselling to a minimum. Ultimately, customers come in with a specific service in mind. If they’re bombarded by sales pitches, it may do more harm than good.

It’s essential that your employees only mention the product if it fits naturally into the conversation or if it’s something that the stylist really feels that they could benefit from. By limiting the amount of upselling you do, you can avoid overwhelming the client. This way, when you do recommend a product, the customer will be more open to hearing about it and more likely to buy.

Where to Position the Retail Center

Not only should you be strategic about how you present your products, but you should also be strategic about where you place them. The position of your retail center is just as important as the products that you offer. Ideally, the area in which you place your retail center should be geared towards appealing to people’s impulses.

Make it easy for people to make impulse purchases. In most cases, your customers are more likely to make quick purchases when they’re on their way out of your salon. Position the retail center near the exit.

Specifically, you need to place the display in the same area in which your customers pay. The best thing about this area is that customers have no other choice but to stop here. While they’re paying, they may look around or think of supplies that they might have run out of. If you have a register, you can place cheaper items around it so that customers will be more likely to make a quick purchase.

If you want multiple displays, you can also place your products on shelves next to your stylists’ stations. This way, the clients may notice the products and can ask questions about them. And this is the perfect opportunity for your employees to educate them on what products would be best for them.

The Takeaway

As you can see, there are several advantages to selling products in your hair salon. It can result in an increase in revenue, you’ll build a reputation for being professional and upscale, and you’ll also encourage customer loyalty. However, while it can be good for business, it’s important that you’re strategic about how you sell your products.

How well you’re able to sell your products will ultimately come down to your ability to educate your clients. Most people focus on selling when they should instead be focusing on making sure the client understands why the products is the best solution for their unique problems. The best scenarios in which to discuss these items may be when stylists are actually using them on the customer.

What are the benefits and distinguishing features of this item? How would the stylist advise them to use the product at home? As long as the stylist seems genuinely knowledgeable about the products then it should be relatively easy to convince the customer to give them a try.