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
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.
Offer 10 of your clients an additional retail item at point of purchase (do it at the station).
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!
That is unless management understands and does something about the nine reasons listed below.
Reason nine:Absence of a standardized quality program. Whether you are a one-man band or a multi-unit salon/ spa, you have to know customer number 101 will be as delighted with your service or product as customer number 1. Having a system that evaluates your salon/spa’s quality will give you, your team, and your clients the assurance of the quality of products/services delivered.
Reason eight:Lack of knowledge about the market and competition. Who are your competitors and what do you know about them? What do you know about your target market that you want to attract? If you don’t know, then you can’t differentiate your salon/ spa from the competition. If you can’t, then your prospective clients won’t be able to either. Without differentiating your salon/spa, you’ve left your new clients coming to you by chance.
Reason seven:Failure to communicate your objectives. You will never reach your objectives if you do not communicate them. (Answer the question, “What are we aiming for?”) Failure to communicate the objectives to your team members will result in anarchy, where everyone does their own thing instead of everyone working for one thing.
Reason six:Poor market segmentation and strategy. Who is your ideal client? Can you describe her? What do you know about her needs for your service or product? The less you know, the faster your cash will disappear and, the quicker you’ll go out of business.
Reason five:Over-dependence on specific people in your salon. The specific person could be you or it could be someone else. No matter whom it is, the question you must ask yourself is, “What would happen to my business without that person?” Documentation on how to get specific, stunning results becomes critical. Let the systems do the work and the people run the systems!
Reason four:Lack of financial planning and review. How much does it really cost to open your salon/spa’s doors in the morning? How much does it cost to bring in a new client? What profit margin must you make to make it worth your while? The lack of financial planning and review has cost many owners their salons/spas. How are your books looking these days?
Reason three:Lack of management systems. Your salon/day spa must require consistent guidelines for producing exceptional results through your employees. If this isn’t true, then you have no management systems working for you. Your management systems allow you to move one-step closer to your salon/day spa being system dependent, not people dependent.
Reason Two:Lack of vision by owners. It’s always fun to dream about how things should be…but what if…? What if you knew exactly what you were building? What if your employees knew exactly the same thing? Without a vision, how will you know that you’ve gotten there? Without a vision, it doesn’t matter where you end up, does it?
Reason One:Owners concentrating on the wrong work. This is a big one. Ask yourself, do you work ON your salon/ spa or IN it? Are you BUILDING a business or just DOING business? Are you really moving towards your personal goals? If your business depends on your being there, then all you really did was buy yourself a job. You must spend more time and concentrate on the strategic (see reasons two through nine) rather than the technical work of the salon/day spa. If you don’t, who will?
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You know your work is going to be great; she’s excited and can’t wait to love what you’ve done.
Yet at that very moment when your client is saying to herself “I finally found someone who understands me,” you’re thinking, “Do I or don’t I?” “Do I or don’t I what?”
Come on now, you know what I’m talking about.
It’s ”Do I or don’t I do that retail thing?”
You see, at that very moment when everything seems to be good, when you’re so much “in the flow” you hear that little voice in your head. You know the one. The one whispering in your ear, “I know this is
the time to introduce retail products to her BUT…”
And bang just like that, in a flash, the magic moment is gone. You are out of the flow and what could have been a great service turns out to be only a good one. And good today is simply not good enough.
Why have you turned great to good? It is because you’ve come up against your retail resistance.
What is retail resistance? It is how you think about selling or taking it to another level, it is how you feel about selling when you think those thoughts about it.
As a human being your natural tendency is to rationalize or justify your behavior. That happens when your little voice takes over. Just like a skilled martial artist uses her opponent’s strength to her advantage; your little voice uses your natural tendency to defeat you.
So let’s be clear about one thing. Poor retail sales are not about the client’s resistance to buying. Oh no, they are about the professional’s resistance to selling.
Look at this list about professional salon retailing and see what comes up for you. Do any of them sound familiar to you? Do you operate from any of these as if they were the gospel truth?
Presenting retail products leads to rejection.
It probably won’t work anyway, so why bother.
If I ask for the sale, it will sound like I’m begging.
People won’t be interested in the products that I offer.
Retail selling doesn’t work for this kind of service.
Retailing just puts people off.
I don’t have the time to retail and my business retailing is a complete waste of time and resources.
Retailing is hard and expensive.
Only salons and day spas with sub-standard services need to retail.
People who retail are just charlatans or snake oil salesmen.
People who retail are just the manufacturers’ drones.
I cannot start retailing until I know exactly what to do.
I’m not qualified (educated or experienced) enough yet.
Retailing is a bother and an interruption to people.
I can’t sell—it’s too embarrassing.
I’m not good at talking and my clients won’t believe me.
The next time you hear that little voice whispering those “sweet nothings” in your ear, remember that it is a rapport breaker.
Just ignore it and do your own voodoo. That voodoo that you know how to do so well.
P.S. Don’t forget to sign up for my FREE ezine, for the newest trends and tips for Busy Salons. Click here to subscribe http://busy
Every day salon owners have a big opportunity sitting right under their nose – and it’s Free!
But, for whatever the reason, most owners don’t take advantage of this opportunity to improve their salon’s sales and profits.
So the question becomes – will you take advantage of this opportunity?
Will you be a mover and shaker – or someone who just goes on complaining about shrinking sales and tiny profits?
Where is this opportunity? It lies in the fact that you already have clients in your salon’s chairs and rooms.
And just like most, your clients are silently begging to be led – in areas where they do not have expertise, clients want to be told what to do, how to do it, and why to do it.
Don’t you feel the same way?
It’s important that we don’t confuse leadership with manipulation. Why? Because people resist manipulation at all costs.
However, it doesn’t mean people don’t welcome and embrace information, advice, education and direction. People will follow you if you’re from the right place—from the heart—and you put the client’s best interest ahead of yours.Y
You know the reasons clients want what you have to give. You know people want to enhance their physical appearance for many reasons, including but not limited to:
Feeling more self-confident
Giving an “image of success”
Feeling more accepted
Attracting a member of the opposite or same sex
Once you’ve personally embraced the “client leadership philosophy, and your clients feel comfortable and authoritatively led, you’ll want to put the power of leadership into action.
How? By telling your clients how they can attain greater advantages, greater results, and greater performance from your salon/day spa’s services and products.
Advocate action every time you communicate with your clients, whether it’s a letter that includes a gift certificate, a cross promotion with another business, include a specific call to action.
If you want your clients to redeem a coupon, tell them to do so. Below are possible actions you may want to persuade your clients to take.
Briefly describe your offer, the service, and information you want to communicate to your clients.
Use short sentences to spur action like the following:
Come in now!
While supplies last!
For a short time only!
Be the first!
After you’ve shown, explained, and educated your clients about what’s in their best interest…motivate them. Tell them exactly how they can obtain the results they want to achieve through the products and services you offer