Larry, I like the scale your prepared for me. Here's the major problem we have in our salon with retail. From the stylist's perspective: They see service as 50%, and retail as 10%. They know that $500 a week in service commissions corresponds to about $25 a week in retail. Their tips are even greater than the retail! They don't want to risk losing services, tips or customers by "pushing" retail without a justifiable reward. Jim
Jim, This is a problem that most salons have. In most salons that I work with the services pay for the fixed costs and a majority of the profit comes from retail. I think that the solution to selling retail is to have systems in place so that everyone knows that it is their job to offer retail during, and at the end of the service.
Festoons has two salons, one in Berkley and one in San Francisco. Their selling systems are so good that they can't keep products on the shelf. You might want to check out their video and workbook. In my opinion it says it all about having systems.
Festoon owners, John and Melissa Ryan, spoke at the PBA Symposium. They realized people only heard a small percentage of what they were talking about, so they and created The Festoon Retail Video and Workbook. The video is for anyone in the industry who wants to learn how to connect with the client through a systematic way of retailing. The workbook covers everything in the video as well as how to evaluate your current retail situation, from the products you're selling to your relationship with your companies.
Having systems in place also lets the people that work for you (don’t forget that) know that giving the clients an opportunity to buy is important and not an option.
Having systems in place also lets the people that work for you (don’t forget that) know that giving the clients an opportunity to buy is important and not an option.
The other thing you might consider to counteract the % difference is to put it in an hourly perspective. For example, a stylist works 32 hours and sells $400 of product. The commission is $40.00 or, to put it another way, $1.25 per hour. What would they do if their spouse got a $1.25 per hour raise? Celebrate I am sure.
Let’s take that another step. Let’s make sure they know what they could do with that money. Ask this, “If you had $2,000 what would you do with it? Vacation, pay down credit cards, savings, pension, clothes, gifts for kids… the answers go on and on. Well it is easy… if you sold $400 of retail a week, in just $80 per day you would have your wish.
Finally, the thing I don’t like but sometimes will jumpstart retail is contests. I hate having to do a contest to have people do what they should be doing anyway, but maybe this would give them the confidence to know that they can sell the products.
Keep me posted.
Larry Kopsa CPA
Let’s take that another step. Let’s make sure they know what they could do with that money. Ask this, “If you had $2,000 what would you do with it? Vacation, pay down credit cards, savings, pension, clothes, gifts for kids… the answers go on and on. Well it is easy… if you sold $400 of retail a week, in just $80 per day you would have your wish.
Finally, the thing I don’t like but sometimes will jumpstart retail is contests. I hate having to do a contest to have people do what they should be doing anyway, but maybe this would give them the confidence to know that they can sell the products.
Keep me posted.
Larry Kopsa CPA
