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SEARCHTo make money selling retail, you’ve got to commit-commit to allotting space for displaying your ware, commit to providing incentives for technicians, and commit to patiently building your business.
An old fashioned credenza adds a warm touch to the display of product at Gadabout's Speedway location.
Although people in the nail industry exhort nail technicians to start retailing, technicians want to see that retailing really works and can bring in enough income to make it worth their while. We asked several salon owners with successful retail operations to show us just how profitable salon retailing can be. After looking at the photos of their retail areas, and seeing that retail accounts for nearly 20% of these salons’ gross income, and 50% for one, you may come to the same conclusion yourself.
Successful Selling is Need-Based
Charles Penzone, owner of Charles Penzone The Grand Salon in Dublin, Ohio, holds a company-wide competition every May to encourage employees to sell more products.
Number of Retail Lines: 30 nail care, 3 skin care, 5 hair care
Best-seller: hand lotion
Sales Commission: 10%
Type of Retail Display: shelves covering an entire wall in the nail room.
Percentage of Gross Receipts Accounted for by Retail Sales: 16%
Estimated Growth in Retail Sales from 1992 to 1993: 4%
Most Successful Nail Promotions: seasonal, such as spring or fall lines
Best Month for Retail: May
Secret to Successful Retailing: Technicians are trained to sell retail products based on clients’ needs only. “You’re going to be successful at retailing as long as you sell what someone needs,” says Lisa Thompson, Charles Penzone’s executive vice president. “You’re not successfully retailing when you sell something just for the sake of selling.”
An old fashioned credenza adds a warm touch to the display of product at Gadabout's Speedway location.
Technicians Need Incentive to Sell
Jensen’s Studio of Nails, owned by Joanne Jensen, is located in a 2,500-square-foot house in Phoenix, Artz. Alcoves throughout the house feature various retail products.
Number of Retail Lines: 20 nail care, 2 skin care, 3 hair care
Best seller: nail polish
Technicians Sales Commission: a graduated scale of 15%, 20%, and 25% once specific amounts are reached
Type of Retail Display: an entire wall of shelves in the waiting area plus alcoves placed throughout the salon
Percentage of Gross Receipts Accounted for by Retail Sales: 20%
Estimated Growth in Retail Sales from 1992 to 1993: 5%
Most Successful Nail Promotion: does not do promotions
Best Months for Retail: November and December
Secret to Successful Retailing: Jensen uses the graduated commission scale to encourage technicians to sell products.
Sell Products Technicians Use
Marie and Bruno von Haas own The Nail Parlor in Aurora, Colo. Number of Retail Lines: 10 nail care, I skin care
Best-Seller: lotion
Sales Commission: 10%
Type of Retail Display: a bar-type unit with shelves located in the seating area
Percentage of Gross Receipts Accounted for by Retail Sales: 16% Estimated Growth in Retail Sales from 1992 to 1993: 4%
Most Successful Nail Promotions: September giveaway to regular clients
Best Month for Retail: sales are consistent throughout the year
Secret to Successful Retailing: Nail technicians at The Nail Parlor sell the products they use on their clients. The clients buy them because they know the products work well.
Good Products Results Equal Sales
Retail sales at Face Works Ltd. in Greensborro, N .C., benefit from owners Pam Springer and Jones started their European day spa in August 1992.
Number of Retail Lines: 3 nail care but narrowing down to 1, 2 skin care, 1 hair care
Best-Seller: nail polish
Sales Commissions: 3%
Type of Retail Display: a round table in the reception area with overhanging shelves
Percentage of Gross Receipts Accounted for by Retail Sales: 50%
Estimated Growth in Retail Sales from 1992 to 1993: 20%-30%
Most Successful nail Promotion: giving away samples of what the client needs Best Month Month for Retail: December
Secret to Successful Retailing: Springer and Jones believe in being honest and giving clients only what they need. They do not support overselling, “clients have to see results,” Springer says. “If your product is good, clients believe in you.”
Quality, Promotions, and Employee Involvement Work
Gadabout Hair, Skin, Nails, and Day Spa, owned by Pam McNair, has four locations throughout Tucson, Ariz., as well as a central office.
Number of Retail Lines: 5 nail care, 2 skin care, 2 hair care
Best-Sellers: quick-dry nail polish; hand cream
Sales Commissions: 10%
Type of Retail Display: large six-shelf units in three salons, an entire wall of shelving in the other salon Percentage of Gross Receipts Accounted for by Retail Sales: 15%
Estimated Growth in Retail Sales from 1992 to 1993: too early to estimate
Most Successful Nail Promotion: a drawstring bag filled with a miniature orange stick, a 1-oz, nail polish remover, two nail polishes, a top coat, and lotion
Best Month for Retail: December
Secret to Successful Retailing: According to Earnest Padilla, marketing and education director for Gadabout, three aspects work together in successful retailing: employee involvement, aggressive promotions, and quality products, Employees are encouraged to sell by earning a commission and having the opportunity to win prizes for selling the most during a promotion. Aggressive promotions inform clients about what products are offered and how well they work. “You have to always have something new promotions.”
Focus on Solving Clients’ Problems
Lynne Doueck, owner and sole employee of Nails, Etc. in Jacksonville, Fla, works out of a small executive office in a business park.
Number of Retail Lines: 4 nail care
Best-Seller: top coat
Sales Commission: not offered
Type of Retail Display: an eight-foot shelf unit with four shelves and a lower cabinet
Percentage of Gross Receipts Accounted for by Retail Sales: 15%
Estimated Growth in Retail Sales from 1992 to 1993: 3%- 5%
Most Successful Nail Promotion: buy one polish at full price and receive another at half price
Best Month for Retail: December
Secret to Successful Retailing: Doueck sells products by determining a client’s needs and helping her solve her problems. She works one-on-one with each client.
Required: A Clean, Well-Stocked Salon
Nail Tech, owned by Pat and Doug Walker and located in Chino, California, offers a money bag guarantee for most products
Number of Retail Lines: 15 nail care, I skin care
Best- Seller: nail polish
Sales Commission: 10%
Type of Retail Display: one slow wall in reception area, a six-foot high display in the middle of the salon, and two round tables in the front that feature products
Percentage of Gross Receipts Accounted for by retail Sales: 15%
Estimated Growth in Retail Sales from 1992 to 1993: down 3%
Most Successful Nail Promotion: selling Valentine’s Day or Christmas charms for three for $12 one for $5
Best Months for Retail: November and December
Secret to Successful Retailing: Pat Walker emphasizes that salons must look like they are in the retail business. She believes salons must be clean and well stocked. “There is nothing worse than a broken, ugly, dirty box sitting there that’s been for year,” Walker says.
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