If your salon is not selling products one hundred percent of your clients are buying them from someone else.
At minimum, the average consumer buys shampoo, conditioner and at least one styling product. The total cost for the basic set of hair care products is roughly $25- $35 per purchase. That’s about $100 per client per year. Consider your client load per stylist for a minute. How much money are you leaving on the table by not carrying an in-house brand of hair care products to sell to your clients?
Not only is a salon brand hair care line a good supplemental income for you as the salon owner, but for your stylists as well. When stylists are empowered to make additional income through commissions they will sell, sell, sell. Many salons already retail a name brand product line for passive income. Unfortunately, the earning potential on sales of an outside brand is very limited. Although you buy the products at wholesale usually 50% of the retail price your profit margin is only 50% of the sale minus the commission rate you pay your stylist.
While that is a decent profit margin, you can do better on your own. When you have your own in-house brand of products you control the numbers totally. You manage the upfront costs. You set the retail price. You determine the commission rate. And because salon brand products are exclusive you can command a much higher price point than your average product line.
Owning a salon brand product line shifts the power in your favor more than just financially. It also provides a platform for you to extend your brand awareness. With the ability to sell your product line outside of your salon in major retail outlets and online your local salon suddenly becomes a nationally known brand. This level of visibility opens the door for expanding your salon presence through multiple locations and even franchising. Product lines are proven to solidify and validate salons think Chaz Dean, Paul Mitchell, The Dry Bar, just to name a few. Would you know those names if their product lines didn’t extend past the four walls of their first salon? Probably not.
I’m sure we’d all agree that being a hairstylist is hard on the body. It’s also a profession that requires your time to make money. A dedicated hair care line gives stylists and salon owners a stream of income that doesn’t require countless hours on your feet or overbooking your chair to make ends meet. You can sell your products online around the world at all hours of the day and night. Make money in your sleep. Make money while someone’s in your chair. Make money while you’re on vacation. Make money on Sundays and Mondays even when the salon is closed.
Above all, your salon brand product line makes a lucrative retirement plan. What happens when your body is tired and you’re no longer built for the salon life? The last thing you’re going to want to do is find a new career. But if you’ve set up a product line that is already selling and doing well then you won’t have to worry about how you’ll make your money when you’re no longer behind the chair.
Starting your in-house hair care line doesn’t have to be a huge undertaking. According to the 2013 Professional Salon Industry Hair Care Study sales of styling products were up by 4% due to an increase in home hairstyling. Start with a styling product that will help your clients maintain their hair between salon visits. Really consider the majority of the clients that frequent your salon and decide what the best type of product would be. Start with one product to manage your initial investment and to find out what other products your clients want to buy from you. Also use this one product to refine your stylists’ sales skills. They’ll need to be trained on how to offer the products with their service and how to rely on their expertise to build the clients’ confidence in the products. You’re the professionals; your clients trust and rely on you to lead them in proper hair care. Think of it as a part of your job description.
So, how much money is walking out of your salon everyday and into the hands of another brand? How bad do you want to take it back?
I am currently offering an exclusive hair care product line for sale that consists of moisturizing shampoo and conditioner plus a glosser/heat protectant finishing product. The entire collection was developed with plant derived ingredients including Mango Butter, Argan Oil, and Monoi de Tahiti Oil. If you would like more information about how to make this product line yours please email me directly at info@theglamscientist.com.