It’s a new year and a time for new beginnings. No matter how efficient your business is running, there is always room for improvement. One of those areas is your retail program. Believe it or not, it can get stale and boring. Clients get tired of looking and trying the same products over and over again.
Now is the time to take inventory of your retail program and energize it. It’s time to sell more retail! Here’s how:
Know your Numbers: Run your retail sales by vendor and category or classification. See what is selling the most and what has not moved at all. Also figure out what percentage of your retail makes up your revenue by using this formula:
Net Retail Revenue/Total Spa Revenue = Retail Sales Percentage
According to Retail Management for Spas published through ISPA, retail sales average 10-18% of total revenue. Where do yours fall?
Evaluate Sales By Category: Look at the overall numbers from your inventory. What sold, what didn’t? Often times, the reason for lack of sales is due to lack of staff knowledge and training, no connection between service and product, poor merchandising and retail space, poor product performance. It can be difficult to pinpoint where the weakness are, however it’s important to dig deep to find them. Get your vendors in-house to do a new year product training.
Clean House: Do not hold on to poor performing lines, even if you really love the rep and company. The product line may just not be a fit for your location or clients. It often comes down to the 4 “P”s of promotion: product, price, promotion and place. Packaging, cost and efficacy of the product is important. Clientele are every knowledgeable about what they are buying. Be sure that you are offering them what they are looking for. Talk to your staff and your clients, get their feedback. Evaluate new lines as needed.
Analyze Your Retail Platform: Do you offer all the lines and products that your clients and staff need to be successful? Create your own retail platform by writing out all your services and connect products to them. Are you offering all the SKU’s that your clients may want? Do you have 5 eye treatment products, and really do you need that many? Make sure that you cover all skin types, and specialty treatment products, because if the client doesn t buy them from you, they will get them somewhere else. Look at the grid and decide where your products fall. Remove the space wasters.
Merchandise Effectively: Products get stale sitting in the same place. Retail should be inviting, clean, and informative. A client should be able to navigate the retail space alone and understand what they are looking at. Use shelf talkers and be sure that everything is priced. Products should be categorized and not overly stocked, 3-4 deep is average. On the other hand, retail that is too minimal can be a turn off, no one wants the last one. Rotate your product monthly and move things around. Have a feature table and offer sampling when appropriate. Think at all times, “What is the client seeing, smelling and hearing?”
Promote: Use your social media platforms to talk about new products and services. Be visual and offer incentives through these platforms.
Retail is fun and dynamic and who doesn’t love new product?! Clients love to see new things and staff do also. Keep things fresh with seasonal products that will be visually enticing. Assign a staff member who might love retail to do your monthly window displays. With a little love and TLC, you will increase retail sales, have happy clients and a great bottom line.