Increasing Profits
With Effective Retailing Methods
by David Landau
Every business owner and manager wants to be successful, whether it's satisfying customers, expanding a business or simply maintaining an impressive bottom line. However, whatever the definition may be, the following tips may help salon owners reach the level of success they dream of.
Monitor Stock and Know the Salon's Products
It's important to maintain minimum stock levels of every lotion in every line the salon carries. Not only does a full display attract attention, but it also shows a commitment to the product lines the salon carries.
Additionally, remember that clean, attractive and tidy shelves are more likely to attract a customer. Also, keeping products' promotional materials next to them gets more customers interested in the product.
Make sure the staff knows and understands how to explain the ingredients in all of the lotions the salon stocks. The truth behind this "golden rule" is that staff members can answer specific client questions about the products--after all, clients rely on the salon and the salon staff to be tanning and skincare experts. Immediate, intelligent answers will build professional credibility and increase sales.
Another effective way is to let the staff try the lotions. If they like and use the products, they are more likely to be confident and sincere when presenting and describing their benefits to the clients and will use phrases such as "I personally like ..." or "I've seen great results with ..."
Personalize the Salon and Offer Samples
Greetings are extremely important because they generally facilitate conversations with clients that may lead to additional sales. Try "How's your tan today?" or "How is your tan coming along?"
Another thing the staff can do is ask the client to lift his or her sleeve and look at their skin to evaluate its condition, as well as to check the progress of the client's tan. Another helpful tip is to have the staff ask the client to see his or her lotion which allows a review of the product to determine whether it's meeting the client's needs, is suitable for the client's tanning level and whether it will damage the tanning beds.
Banners asking "Do you have your tanning lotion with you?" are great near the counter and tanning rooms, as well as excellent ways to create selling opportunities and provide a chance for clients to try new products.
Sample packs also can increase retail sales. A client will appreciate both the low price and the convenience of a trial size packet to see whether they like the product. Discounted sample packs are ideal in conjunction with a display featuring a specific lotion. Using samples for the high-end prestige lotions is a great way to introduce these products, their features and benefits and get clients to try them and accept the price difference for a better-performing product.
Complimentary sample packs for new clients choosing an Electronic Funds Transfer payment program or prepaying for a package is perfect for introducing clients to the benefits of lotions and developing a preference for the products the salon carries.
One key to effective retail sales, whether the client is new, has forgotten his or her lotion or is looking at a display, is actually to put the product in his or her hands. This creates ownership for the client and allows them to read the label and ask questions. The feel and design of the bottle, the look of the label and the lotion's fragrance will create an immediate emotional response and learning to interpret this response will help close a sale.
When clients ask questions, try and turn it into a discussion about their tanning experience and expectations. The idea is to provide a personalized consultation and establish rapport with the client. In a sense, this personalizes the sale--after all, the clients look to you and the salon staff to be a tanning authority--and every customer has unique needs and expectations.
Review their experience with indoor and outdoor tanning as well as their tanning and skincare needs. Take a written description of how the client does in the sun to determine whether he or she burns easily. A great retail strategy is to offer tanning kits that include indoor accelerators, an SPF for outdoor exposure and a vitamin E and aloe moisturizer to keep skin conditioned and healthy-looking. These kits will prove to be useful year-round.
Customize the tanning kits to meet the client's individual needs. Recommend appropriate lotions or gels, exposure times and session intervals after evaluating the client's skin type. A well-trained staff who is educated about sun and skincare only will reinforce the salon's credibility and expertise and serve to underline the salon's professionalism.
Evaluate Sales
By monitoring inventory and conducting weekly sales meetings with the salon staff, during which product feedback from clients can be discussed, orders to suppliers can be adjusted to meet client needs.
When specific items are found to be slow-moving, review the internal efforts to determine if the problem is training or whether the product simply doesn't appeal to the salon's clients. If the product doesn't appeal to the clients, reduce the price, clear the stock and discontinue it.
With faster-moving items, stock heavily to avoid running out of popular products, especially during the salon's busy months. Be sure to understand why the product is selling so well by talking to the staff and clients. Nothing is more contagious then enthusiasm.
Pricing strategies that discount slower-selling lotions when purchased with faster-selling ones also can be extremely effective. Use staff and client feedback to isolate the faster-selling, more popular lotions and structure a pricing program that gives a $1 discount on the less-popular lotions when a preferred lotion is purchased.
Competitive pricing on lotions can work in conjunction with an effective tanning package to allow potential clients to call or visit the salon. Although session pricing will be most important to a potential client, such things as advertising, window displays and lotion pricing will give him or her more positive things to consider and demonstrate the salon's efforts to be a complete tanning source and provide value for its clients.
Off-Season Strategies
Everyone in the industry knows that June, July and August are tough months to endure. Clients usually don't consider the benefits of indoor tanning when it's warm and sunny outside. It's tempting to lower session and membership prices to entice prospective clients during this time. However, even though the overall number of indoor tanners declines during this period, lowering tanning prices can be a losing proposition.
Work to attract customers by extending hours, using direct mail or fliers, contacting local employers to offer their employees discounts and selling prepaid tanning packages to new clients emphasizing the salon's uniqueness. Offer winter and spring clients packages that are discounted by 10 percent to 15 percent over peak pricing. Profit margins should not be significantly affected as these clients will be tanning less frequently during the summer, so the session costs will closely offset the discounts offered. Establish aggressive lotion pricing and discount moisturizers, and SPFs during the summer months.
Salons also need to differentiate themselves from the competition. However, be careful and don't let efforts to distinguish a salon from the others alienate it from the clients. Finding out what the client wants and needs, then satisfying those requirements, is the road to attracting and keeping clients and building a salon's reputation for superior service.
When a competitor offers a package that is priced too low to compete with, don't offer it. Doing so only will hurt the business in the long run. Continue to offer exceptional, professional service and clients will remain loyal.
Know the Clientele
Know what lotions appeal to which type of client. Understanding the salon's demographics will help salon owners to carry the right product. Value lotions (lotions that retail for $10 or less) generally appeal to clients with limited budgets such as college students. Moderately priced lotions ($12 to $25) generally appeal to young professionals, advanced tanners or those with more discretionary income (although this will be hard for salon owners to determine). High-end lotions (those priced at more than $25) are ideal for those clients who want the very best results, the best tan and the best skincare.
