Is your retail business where you would like it to be?

If the answer is “YES,” then either one of two things has happened:

  • You’ve been building your business by making it a focus of attention and allocating the necessary resources (including time and energy) towards it.
  • You’ve lowered your expectations and standards so now you’re meeting them. click here

If you’ve answered “no,” in other words, you want retail to contribute in a big way to your salon/day spa’s sales and profits; then hang on, because help is on the way.

I’m going to share with you how-to

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increase your average point of purchase retail transaction by 20-30%.

It’s simply using The Power of Up-Sell and Cross-Sell.

Have you ever gone to a McDonalds and been asked the question, “Would you like fries and a coke with that?” or, “Would you like to super size your order today?”

Have you ever purchased a computer or digital camera and been asked if you’d like to buy the extended warranty?

Have you ever gone to purchase the basic model appliance, let’s say a washer/dryer, and planned on spending $500, but instead left with a better model to meet your needs, which cost $650?

Have you ever found yourself saying, “sure, why not,“ even though you didn’t order or intend to order that additional item when you arrived in the store or at the website?

Here’s the scoop. The statistics say 30% of people say yes to these questions. The companies effectively employing this simple strategy earn as much as 30-50% of their profits from such time-tested tactics.

But what’s ironic is that surveys show 88% of the companies don’t use

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these strategies.

To show you the impact of a 30% increase, I’ll break the numbers down for you.

  • If you have retail sales that are as little as $200 per week or $10,000 per year, 30% equates to $3,000.
  • Take a couple of steps up from there and 30% equates to $15,000 per year if your salon now sells $50,000 in retail.
  • $30,000 if it’s $100,000.
  • $60,000 if your retail sales are $200,000.

Now that’s talking extra money and most salons/day spas are leaving it on the table.

We call this concept up-sell or cross-sell.

Up-selling is when your client purchases a greater quantity of what they are ordering.

Cross-sellingis when your client purchases an additional item or service, in addition to the original order.

Is this basic enough?

Sure it is; however, remember the statistics, get out of the crowd of 88% of those companies that don’t have an up-sell/cross-sell strategy in place.

Don’t believe me about the impact?

Let me give you a test step to put into place, then decide for yourself if you want to take it further.

  1. Offer 10 of your clients an additional retail item at point of purchase (do it at the station).
  2. See how many say yes.

Note: If you already use this strategy, add another item or look for ways to improve your current results (perhaps you’ll want to make sure those 10 clients are asked the question again when they’re paying their bill).

The question you’ll want to ask yourself is this – does my salon have a formalized/systematized up-sell/cross-sell system in place?

If you don’t, I encourage you to put one in place and work it to death!

If you

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don’t know how to, it’s ok, as long as you learn how.

Why? Because it works.