Retailing Success

Retailing Success

Tanning salons, apparel and swimwear are ideal matches and can be profitable ventures if marketed correctly.

1. What You Should Know 
There are a few things to consider before making the decision to carry swimwear as a retail product in your salon. First, purchasing suits directly from a swimwear manufacturer differs from buying tanning supplies from a distributor because swimwear companies usually require high minimums which means salons are forced to buy in quantity instead of testing the waters with a smaller order.

Tanning salons should seek out swimwear manufacturers or tanning supply distributors that will sell to them without requiring the normal minimums. This works well for salons because they don’t have to purchase three or four dozen suits; they can buy one or two suits if they want.

2. Understand Your Customer 
Get to know your customers’ tastes and desires in swimwear fashion. If your salon is located in a conservative area and your customers reflect that attitude, try to stock suits that fit that taste level. Marketing string or thong bikinis in that market could be a waste of money; however it couldn’t hurt to carry a few. The most important thing is that you cater to your customers’ wants and that includes offering a line of swimwear accessories that include T-shirts, scrunchies and coverups.

3. Get The Word Out 
If your salon carries swimwear or has plans to carry swimwear in the future, one of the most important things to do is let your customers know. If your customer base doesn’t know you are in the swimwear business, your swimwear venture is likely to fail. Hang posters and other signage on the front door and in the windows of your salon to draw attention from passersby who may not be your customers. If possible, display the swimsuits in a unique window format so people want to come in and look at the suits. Check out a couple of specialty retail shops to see their merchandising techniques and then apply them to your salon.

4. Making An Investment 
Once you have made the decision to carry swimwear, decide how much you are going to invest in one-pieces, bikinis and so on. Plan your budget and stick to it. Analyze your customer demographics and place your orders accordingly. Carry a good assortment without investing too much in one style.

5. Merchandising 
Once you have decided to enter the swimwear market, test the waters before jumping in. Research the market so you don’t overbuy and get left holding stale product. Remember, the key is knowing your customers’ tastes and giving them a reason to shop at your salon for their swimwear needs.

Start off with a few lines that you think are right for your customers and add on as your cash flow begins to build. Carry a couple of suits from several lines and find out which ones are the most popular. Once you find out what’s hot, stock those styles. It is important to remember that you will not be 100-percent right with regard to what your customers want.

Try to budget suits in several price categories. The key is to give your customers as many options as possible without over extending yourself. If you think your customers are willing to spend $100 on a swimsuit, then carry an assortment of suits in that price range. If your customers are more apt to buy suits in the $60 range, then provide them with those suits.

Also, try not to buy too close to the end of the season—you don’t want to end up with excess inventory that won’t sell. Understand that come May and June, department stores will be putting their swimwear on sale and you must be prepared to do the same. Reduce your inventory and get geared up to move into the next season’s fashion trends.

6. Seek Manufacturers Who Understand And Support Indoor Tanning 
Salon owners should be aware that many swimwear manufacturers are not interested in doing business with our industry because the salons can’t afford the minimums that are required by manufacturers. When looking through trade publications, keep an eye out for swimwear manufacturers that advertise and receive occasional editorial coverage. These companies usually have geared themselves toward the tanning industry and have a better understanding of who your customer is.

7. Provide Great Customer Service 
Once you have made the decision to add swimwear as an ancillary product, learn the business. The more you know about swimwear, the more customers will come to rely on you for their swimwear needs. Keep in touch with the industry and try to attend one of the fashion weeks or markets that take place in several areas around the country.

Be aware of consumer attitudes. Heed the numbers and supply your customers with what they want. Provide a dressing room with a full-length mirror and good lighting. Even though your salon may have several rooms, customers who are there to shop and not tan need a place to try on the suits.

Train your staff to become swimwear experts to assist customers in an informed manner. Educate them on fashion trends and styles so they are more comfortable helping customers choose the perfect swimsuit. The more they know about swimwear and retail, the better service the customer receives.

By following the above steps, you can make swimwear a profitable venture in your tanning salon. Remember, providing your customers with top-notch service and superior quality will be two factors that keep your cash registers ringing.

Retailing in this country is evolving away from the traditional storefront operation. With changing consumer lifestyles and issues relative to safety, crowding and the inconvenience of traditional retail outlets, consumers are looking for alternatives.

What does all this mean to you? More working women means more prospective customers interested in their physical appearance, i.e., hair, nails, skin color and, not to be forgotten, clothes. These customers now visit your salon more frequently per month to maintain their cosmetic appearance. This means you have a consistent stream of customers—with their own source of income—who feel better about themselves as a result of the services you provide. You feel better about yourself when you purchase new apparel, and so do your customers.

Make sure you are carrying apparel that meets your customers’ desires, not just your own taste. Do you know their spending habits? Where do they shop for casual clothing? Where do they vacation and how often? What do they wear into your place of business? What kind of vehicle do they drive? Don’t fall into the age-old trap of buying only what you would wear. Remember, the more you know about your customers’ lifestyles and tastes, the more able you will be to provide apparel that meets their needs.

Do you really know who your competition is? Where are your customers shopping for active-wear, resort-wear and other casual attire needs? Visit the major outlet malls to find out what they are offering in apparel and what their price-points are. (Price-points are the range of lowest to highest prices.) None of the above alternatives reduce the inconvenience of shopping for the working woman. She’s coming to your business for cosmetic improvement; is she candidate for clothing? Yes, absolutely. But, how do we get the customer’s attention as to your selection of clothing?

Merchandising is defined as “sales promotion as a comprehensive function including market research, development of new products, coordination of manufacture and marketing and effective advertising and selling.”

The market research includes knowing your customers (their buying habits and needs) and competition (what are the customers buying, where they are buying and at what price). The new product portion of merchandising is a result of your understanding of your customers and finding unique products to meet their needs.

The marketing, advertising and selling parts of the definition reflect how you position your salon in the customer’s mind and actually how you close the sales with your customers. They key to success for your business is differentiation. Your customers need to perceive your salon as a different experience from competitive salons.

This is the most important aspect of merchandising. You can have all the facets of merchandising perfected; however, an error in pricing will not allow you to get the sale. Pricing is an art not a science. As stated earlier, you must know your customers and competition to determine what market prices are in your area.

Some of you have raised your eyebrows and said, “I can’t afford to discount.” You may not have to, but you must recognize that consumers buy on a value equation that includes the following:

1. Fabric 
2. Style 
3. Price 
4. Savings 

What kind of fabrics are your customers wearing? Most of the garments are made of cotton and poly-cotton, and care details are important to consumers. When you consider style, this may be one of the prime methods of achieving differentiation. You know what the department stores and discounters are carrying. Find a supplier that can provide you with styles not found in competitive stores.

This is a key step in satisfying a customer’s desire and in keeping your profits where you want them. In the value equation, numbers 3 and 4 above could be considered in the same light but they are distinctive in themselves.

Your vendors have conditioned you to “keystone” or double the cost to determine retail prices. This is much simpler with a $6 bottle of lotion than a garment that may cost you $25. Whether we like to admit it, people do not want to buy at retail. Part of the value equation is “what are my savings?”

Let’s use the example of a 50/50 poly-cotton pant set with a $50 cost that has appliquès and other work to make it different from what is available in local retailers. How do we price this garment to sell and make a profit? First look at market price. What garments are perceived similar, though they are not the same, sold for locally? Try pricing the garment as such:

This pricing strategy is an example of tactics used by major department stores and the discounters. You need to look at the dollar contribution of $19 and that you do have a 43-percent margin. You did not keystone, but instead satisfied a customer and yielded a $19 gross profit. If an item does not move in 30 days, mark it down further to move it. You will make mistakes from time to time but just mark it down and know your judgment will be better next time.

The above pricing scenario establishes a value line on the garment to your customer at $59—a savings of $15 and a net selling price of $44. This is the psychology of selling today. If you have a niche market for a product that allows higher margins that is great, but you must keep in mind the customer has alternatives to your salon and the products you are selling. For some this is a bitter pill to swallow but it is an economic fact. Your vendor will be very important in your ability to meet your customers’ needs and fulfill the value equation.

Find a vendor that can supply you with unique garments and be assured that the supplier has the garments in stock during the season. Boutiques order four to five months in advance of the season; you do not need to do that. Experts recommend that you order your requirement in 30-day increments because it gives you a better turnover and minimizes your capital outlay for inventory.

You should look at garments that are “one-size-fits-most” or sized S, M and L. This will minimize your inventory requirements and eliminate the necessity of a dressing room. You should look for no-minimum vendors that provide same- or next-day shipping. Also look for vendors that introduce new styles during the season, so that as you run out you can still order an item that has been hot or any new items as well.