Lotion Trends ‘08: Skin Is In

Industry veterans agree that, in order to be profitable, at least 30 percent of a salon’s monthly revenues should be derived from lotion and skincare sales—even during a difficult economy. With more than 31 percent of salons reporting the economy influenced their business last year, it is clear that salon owners need to examine their customer demographic and zero in on what those clients are willing to purchase.

Here is a simple example: Salon A’s monthly report reveals that younger tanners who spend less on lotions and accessories are overtaking the 25- to 35-year-old category. The salon owner changes the marketing strategy the next month to attract the older demographic with more disposable income, resulting in increased profits and a wider audience.

The lesson: Salons that sit back and wait for customers to come to them will come up short, while salons that aggressively market to specific demographics will reap rewards.

Statistics gathered during the 2008 Top 250 Salons search reveal that lotion sales in 2007 continued to hover in the mid-range price-points, and 86 percent of salons reported that lotion sales accounted for 10 percent to 30 percent of their monthly revenues. Only 11 percent of salons reported that lotions accounted for 30 percent or more of monthly revenues. This number is down from 14 percent the previous year and confirms the fact that the majority of tanners are looking for more affordable deals. Interestingly, only 3 percent of salons reported that lotion sales accounted for less than 10 percent.

The most common factors that affected consumer spending confidence were more aggressive selling tactics and salon incentives. Many salon owners agreed that product education obtained at trade expos, distributor symposiums or from manufacturers helped increase lotion sales.

Additionally, many salons attribute success to making sure their employees are skincare professionals who advise customers on the various products. Many marketing-driven salon owners hold weekly, monthly and quarterly contests to promote fun competition between employees and 84 percent of salons pay employees commissions on lotion sales to increase revenues.