STAY ON TOP OF THE SALON INDUSTRY

I am saying it again!!!
~STAY ON TOP OF THE SALON INDUSTRY

The Beauty Industry Report Newsletter is the one publication that gives me the best insight into the industry (but no pictures or fluff). Editor, Mike Nave, provides straight information and facts without all the glitter. It is one publication that I read the day that it hits my desk. Below is a taste of what you will read in the BIR.

We Must Teach Salons to Retail
By Bob Oppenheim

Well, I guess it’s official: It’s the manufacturers who are responsible for most of the diversion in our industry. Regis president Paul Finklestein made it official with his statement in a recent BIR that, “Manufacturers bear 95% of the blame.” Coming from Paul, it is a confirmation of what most of us have believed all along. Those ads and earnest protests against diversion were just smoke and mirrors to tell the hairdresser somebody else might be doing it but not us.

So how does “professional” merchandise get into supermarkets, mass merchandisers, independent and chain drug stores? Easy. The retail operations send their trucks and the manufacturers load them up. Or the retail organization orders merchandise and the manufacturer ships it. Or, if they want to deny that they do this, they allow distributors to sell to retail operations while they look the other way. You must remember that when vast quantities of merchandise are diverted, everybody except salon owners makes out. The distributor gets his profit, the manufacturer’s sales person selling to the distributor makes his numbers and the manufacturer cries all the way to the bank.

It’s not going to stop, folks. There’s too much in it for everybody—except the salon owner. And it won’t work simply to discontinue lines you see on retail shelves. That would eliminate almost, but not quite, everybody. Even outfits like Regis’ Trade Secret might have to fold their tents.

What to do? Consider this: Among the giants in our industry, we have all the knowledge there is to be had about retailing. There’s Procter & Gamble, L’Oréal, Estée Lauder and Shiseido. That’s a lot of retail know-how. In fact, it’s everything about retail know-how. Let’s call on all of them to do the right thing. Teach salon owners HOW to retail. There’s advertising, marketing, merchandising, displaying, inventory control and on and on.

Remember manufacturers, Revlon grew to eminence by having a crew of women traveling the country incessantly teaching salon owners about manicuring. Revlon became the leader. Clairol had a couple of hundred haircolor consultants calling on salons, giving classes, clinics, workshops. And Clairol became the leader. Paula Kent Meehan had an educational juggernaut to convince salon owners that, yes, they could retail. And Redken became the leader. When the Nordstrom family owned Creative Nail, they had an army of nail techs out there evangelizing and they thrived. Manufacturers that teach and demonstrate the many aspects of successful retailing will be rewarded by sales to and orders from appreciative salon owners.

Salons can compete with standard retail operations. Salons have unique advantages, but they think (because they have been taught) that they must have exclusive products. Not so. They must learn HOW to compete. Manufacturers who teach them will be rewarded not only with increased sales but with the ability to look in the mirror and know they are helping not hyping. Do it manufacturers! You’ll sleep better at night.

Click here to review a BIR free issue bironline.com – then sign up. This will be the best money you ever spent and tax deductible!!