Hair Care News

Private Label Salon Products

Posted on September 28, 2011 with No Comments

Private labeling your own salon products can help increase your bottom line and you customer base at the same time, which can bring in extra revenue. You make way more money by private labeling your own products than you ever would selling brand name products, plus you are getting your own line. To salon and spa owners private labeling is an easy way to make more money, and build a strong customer relationship. One good thing about private label salon products are you control everything about them, down to the scent.

Employees will more eagerly sell there own products than other name brands because they know it will bring in more revenue, which means better jobs for them. We all know that new salons and spa’s are opening up daily, the beauty business is larger than it has ever been. Each spa has their own little niche they are trying to fit into, to sell their specialized products. Now with the power of the Internet salon and spa owners can even sell there products online, and expand there customer base worldwide.

Once you get your own private label line you will be surprised on how fast you will have your customers hooked on your products. Since you are the only supplier of your brand then you will see more repeat customers as well. These days you can get products made for you in for about everything you can imagine.

The products price depends on the quality of the ingredient that go into it. The cheaper the ingredients the cheaper you can buy the products for. The more expensive the ingredient the higher the product will be but it will also work better as well. So one thing to decide is if you want to buy and sell cheap, or buy high and sell higher.

Because you are in control of these products you can customize everything from the logo and name of the product to the color and scent. Every year you will see more and more people leaning toward more natural products so that is always a good way to go. People generally feel better about using natural products, especially if they work.

There are so many people looking for the next product to rock there worlds getting into private labeling salon products is easier than you think. You can make more money on each products and pick and choose exactly which products you want to carry. Designer brands are ok but really expensive and too much hassle so why not make your own brand up, what do you have to lose?

Selling Discount Salon Products to Increase Salon and Barber Sales

Posted on September 28, 2009 with No Comments

In our continuing quest to increase sales and traffic in salons and barber shops, consider selling major brand salon products at a discount – it has worked for Wal-Mart and other major retailers, it might just work for you!

Many salons and barber shops I have visited generally carry one to three major brands they keep on the shelf.  If promoted by the stylists or owner, you might get a few sales.  Unfortunately, this is often NOT the case and product sits on the shelf moving very slowly.  If this sounds like it might be the situation for you, then consider an alternative – deeply discounting well-known shampoos and conditioners to attract more customers and increase sales.

Many small and even multi-unit shops believe products should be marked-up to give them the highest margin.  For high-demand products or if your shop has high traffic, this very well may be the strategy you might follow.  However, as with many types of products, there is an “elasticity” to the price and volume associated with most products.

“Elasticity”, or more commonly referred to as “price elasticity”, refers to the sensitivity the product’s price has on its sales volume.  For the highest demand products, the price can be raised quite high before demand drops.  For most products, however, discounting the price leads to increased sales – to the point where discounting no longer shows an acceptable profit.  The trick is finding the perfect balance – and that balance varies depending on the product’s demand and exclusivity (can they find it somewhere else?)

Many salons sell brand products at a 100% mark-up or a 50% gross margin.  This is typical is the similar mark-up the distributor might get from the manufacturer.  For instance, a distributor may get Kenra shampoo from the manufacturer for $4.00.  They in turn sell to the salon for $8.00.  The salon in turn sells to their customers for $16.00.  Pretty stardard fare.

But, what good does a good, high or reasonable mark-up get you if you don’t sell anything?

Therein lies the the justification for selling discount salon products.  If you discount a $16.00 shampoo 25% (selling price of $12.00), you still get a reasonable gross margin (GM), but you might triple your sales –  puttting you ahead on cash and profit.  Also, if a customer likes the product they bought AND the price is good, they will likely return for more purchases – giving you an annuity-like revenue you didn’t have before.

While this sounds good on the surface,  you must promote the products.  Signage, ads, recommendations by stylists, etc can “get the word out” improving traffic.  Next time we will talk mores specifically about how to promote your discounted products.