Retail Items

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