Beauty - Expert Panel .........................................................................................................................................................................................................
How important are retail sales to a salon / Spa’s bottom line?
David Donnellan
for
xperthair.ie distributors of ALFAPARF Milano
“Retail sales for both the hair and beauty industry in our current climate has become more important than ever.”
“Retail sales should be commercially rewarding with margins of 50% on average, and should be a percentage of the salons total sales or turnover net of VAT of 10% minimum. Retail sales from our industry should always be about taking care of the client, but also should be about paying the rent, and if it is operated correctly it will do that and more.
“Global retail sales in the beauty and hair sector have been hit by 5%, however some sectors are bucking the trend, with Eco/Organic sales growing by 15% and Men’s Hair and skincare Growing by 11% year on year*.
(*Source: Market Researcher Data Monitor.) Of course, salon owners can also attend specifi c courses in Ireland to help improve their knowledge on retail sales.”
Sue Maguire
Sales Director for Phorest Salon Software
“Retail Sales have always been the icing on the cake in the Spa and salon industry, where else can you double your profits in five minutes?”
“Some salons are very good at retailing and some are not. In my experience, those salons who are good truly believe in what they do, and offer an excellent client experience along with a very Professional Treatment, so much so that not only does the client buy the products they recommend, but they do it willingly.
”For those who do not believe in retailing or are not confi dent enough to do so, ask ourselves this?
1. Do I truly believe in the products I am using professionally?
2. Do I have excellent product knowledge?
3. Do you accept that your clients will buy products either from you or elsewhere?
Liz McKeon
Business Coach and Trainer specialising in the Beauty Industry
“Regardless of space, a well- stocked shop will strengthen your salon’s identity.”
“It creates an awareness of your products and begins to help plant a seed that can develop a desire to buy. There is unlimited potential to increase turnover and improve cash-flow within the salon/Spa by becoming a serious retailer, focusing on and increasing retail sales. This sales process will have a positive impact on figures, increasing turnover for the business and providing commission for the happy salon staff.”
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“If you answer yes to any of these points you need to assess your business because you are missing a huge opportunity to double your profits, how can your professional integrity let a client pay for a treatment and not educate her in ‘what is best for her’ and worse still buy a totally inappropriate product over the counter?”
Laura Carrick
National Sales Manager for the International Institute for Anti-Ageing
“In an environment where labour is a good 35-40% of the salon’s expenses, retail sales can have a signifi cant impact on a salon’s bottom line.”
“Most treatments will run at a margin of 65-75% but these can take anywhere from 15 minutes to an hour and a half to do depending on the treatment and on the therapist’s capability. So, a facial at £50 for 60 minutes would make £32.50 profit at 65%.
“Moreover, if a therapist allocated an extra 15 minutes and retailed products alongside every treatment, she could sell at least one, but more likely three, related products to her clients at an average margin of 25 -40%, depending on product and commission.
“If she sold a moisturiser for £30, cleanser £16 and toner £16, at 35% that would give £21.70 more profi t. If the salon made £20 ‘extra’ profi t from everyone they saw in a month - let’s say 350 clients - that’s £7,000 extra on the bottom line monthly. Over a year that’s an extra £84,000 profi t!”
If you have any questions you would like us to put to our expert panel, email us at
melissa@aitireland.com
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