Seven reasons why salon retail is key to your post-Covid business recovery plan
You don’t need us to tell you that hair and beauty was one of the industries hardest hit by covid restrictions and lockdowns.
The National Hair and Beauty Federation (NHBF) reports that hair and beauty businesses saw an average loss in turnover of 45% in 2020 (up to 57% in some regions). They estimated that salons would be on average £41,000 out-of-pocket by the end of 2021.
However, with most covid restrictions lifted across the UK, now’s the time to look forward and revisit your salon’s business strategy to maximise your recovery.
With high margins and an already engaged audience (your clients!), salon retail can be a quick win to increase your takings.
According to Salons Direct, the industry average is 5% of revenue coming from retail sales – how does your salon measure up and what can you do to increase that percentage?
You can only fit so many services into a day, but retail opportunities are limitless, so make sure you’re not leaving money on the table!
So here are our seven reasons why you need to be focusing on increasing retail sales in your salon:
- Retailing makes your existing clientele more profitable
Retailing can increase your clients’ average spend-per-visit across the board. Salons Direct recommends aiming for 20% of the service value in retail sales. So, for a £60 treatment that would be a £12 product sale.
Multiply that across even some of your client base and you have a healthy new revenue stream.
- Retail boosts your business – whatever size you are
Whether you’re a mobile hairdresser, have a home salon or a chain of branches, retailing to clients can make you more profitable.
Yes, some professional salon brands have prohibitive minimum order amounts or insist on only supplying larger salons, but suppliers like Salon Botanicals support and serve all sizes of salon business.
- Retail brings salon-exclusive products to your clients
The availability of some big-name brands online that were previously only available in salons, has hit professional hair and beauty retailing hard. Clients can access these products online from the comfort of their sofa, often at prices that are impossible to compete with.
Choose brands that your clients won’t find anywhere else. Salon Botanicals products, for example, are only available from our salon stockists or via our website: your clients won’t find our products anywhere else.
- Your retail offer helps you stand out from your competitors
Even with the impact of covid, the hair and beauty industry is still forecasted to grow over the coming years, and competition is fierce. Differentiate yourself from your competition by offering something different that aligns with your salon’s vibe and values, as well as market trends.
According to insurers PolicyBee, consumer demand for organic and ‘clean’ beauty products is growing, so if natural and eco-friendly products resonate with your brand and clients, look for lines like Salon Botanicals that fit this brief.
- Retail in your salon can attract new customers
Promote the retail brands you stock in the same way as you do your services, especially if you have salon-only brands that your competitors don’t have. Don’t forget special occasions like Valentine’s Day, Mother’s Day and Christmas – someone popping in looking for a gift could become a regular client.
- Retail isn’t just about “selling”: it’s about offering a personalised service
Many people feel uncomfortable about selling or coming across as pushy. The trick is to shift your mindset: don’t focus on ‘trying to sell’, focus on how you can help your clients. Think of retail as part of the expert, personalised service you offer.
Pick up on cues from your clients. They say they love the smell of your shampoo or how their hair feels after you’ve styled it? Buying the products from you means that they can enjoy this feeling at home. A simple “Would you like to take some home?” is often all you need.
Start with the products that you love: your natural enthusiasm will shine through. Your clients trust you with their hair because they trust you. They also trust your advice and recommendations
- Retailing motivates and educates your team
Get to know your products and ask your supplier for training if you need it. At Salon Botanicals, we offer personalised training to all our stockists so that they can offer the best recommendations to every client.
Set targets and offer commission and/or prizes to incentivise staff. Targets should be challenging, but not unrealistic, to keep teams motivated.
Market researchers Statista found that the amount spent at hairdressers and personal grooming establishments is growing. In the third quarter of 2021, the Office for National Statistics recorded that consumer spending was nearly £1.9 billion: make sure some of that money is being spent with you!
To find out more about becoming a Salon Botanicals stockist and get a sample pack, get in touch.