Dermalogica retailers, are you losing sales to web based sites????

[charles1902]

Hi,

I am just doing quick survey to ask if you stock Dermalogica and whether you have lost sales to Web based sites. In my salon I have found that I have lost at least 90% of clients who we have converted.

Please can you let me know if you are having the same problems.

Look forward to hearing from you.


Charlotte

 

[hsmith]

Hi there

I must admit our sales have dropped quite a lot but i dont know if it is to do with the credit crunch or web sales - something to think about .

heidi

 

[charles1902]

We have recently reduced our prices to price match the web sites and on one evening 3 clients admitted to shopping on line.

 

[kylieb]

I buy mine online. I couldnt afford it otherwise. Some salons charge the earth. I think a lot of people are doing it this way tbh xxx

 

[cabinkel]

I agree that I have lost sales to the internet. I do not stock Dermalogica, but I know clients who have purchased the nail products that I retail online. Its frustrating!

 

[bombini]

I buy mine online. I couldnt afford it otherwise. Some salons charge the earth. I think a lot of people are doing it this way tbh xxx

The salon price is the RECCOMMENDED retail price. I am completley gobsmacked you have posted this comment as a professional on a professional website !!!

What makes me really, really cross about clients that buy the products off the internet (to my knowledge ive only had one and she soon stopped coming to salon when i refused to supply her with endless stocks of samples) is that these clients quite happily come to the salon and get their faces mapped whilst taking some samples then trot off home to get it cheaper, but do any of them actually realise we are giving the samples out for FREE, we are advising them on the suitable products for FREE, Face mapping them for FREE !!!!

Obviously the salon makes money off products, every product company in the world has a trade & retail price. You don't get professional advice off the internet, you have to self diagnose which is a risky business when you have a range with so many products and then usually people moan the products are rubbish. Usually through the persons own ignorance they have bought the wrong product and its not worked so its been discarded in favour of something else so you've effectively spent more money.

In answer to the original poster, I haven't seen a difference in retail sales as I only started stocking Dermalogica nearly a year ago and all my clients buy if from me or just use something else. I think that there must be some clients from the hair salon that probably buy it online as the product booklets and testers always need replacing yet it is very rare I get any retail from the hair salon clients it is either my own or walk ins.

Just to add I offer a loyalty scheme on products so after a client has spent something like £150 they get a free treatment, I find this works very well as the client has an incentive to buy from me and when they get close to £150 they tend to buy something extra so they can get the treatment.

 

[cabinkel]

The loyalty scheme idea is a fantastic one, might have to borrow that one! Thanks x

 

[bombini]

The loyalty scheme idea is a fantastic one, might have to borrow that one! Thanks x

Thats ok, if you pm me your email address I think I might have a proof saved on my pc which I can send you. I had them done at printers but tbh they are nothing really fancy and could be designed very easily on publisher and printed. I get to stressed with computers to do it myself ! xx

 

[fozzyo]

I've been discussing this very issue with a friend who is considering discounting to try and get back some of the sales. I suggested a different approach - she already has a succesful loyalty scheme.

If a client comes in for a facial, give them the discount on the prescribed products - not just to purchase then, but also on replacements without a facial. They know they are getting the best products and you can say that when they come in to buy more you can have a look to make sure they are still suitable. And with the personal contact and service you can cross-sell or suggest another treatment.

Don't blanket discount - this will just devalue your salon / service.

Mat

 

[EmJZ]

I buy mine online. I couldnt afford it otherwise. Some salons charge the earth. I think a lot of people are doing it this way tbh xxx

The salon price is the RECCOMMENDED retail price. I am completley gobsmacked you have posted this comment as a professional on a professional website !!!

What makes me really, really cross about clients that buy the products off the internet (to my knowledge ive only had one and she soon stopped coming to salon when i refused to supply her with endless stocks of samples) is that these clients quite happily come to the salon and get their faces mapped whilst taking some samples then trot off home to get it cheaper, but do any of them actually realise we are giving the samples out for FREE, we are advising them on the suitable products for FREE, Face mapping them for FREE !!!!

Obviously the salon makes money off products, every product company in the world has a trade & retail price. You don't get professional advice off the internet, you have to self diagnose which is a risky business when you have a range with so many products and then usually people moan the products are rubbish. Usually through the persons own ignorance they have bought the wrong product and its not worked so its been discarded in favour of something else so you've effectively spent more money.

I totally agree!

Our spa has tried to tackle the loss of retail in 2 different ways which seem to be working quite nicely actually. [1] offer discount on the products prescribed on the face mapping sheet (so only if they've had a professional treatment) [2] offer a loyalty program for facials and products eg: on 5th treatment recieve a free scalp massage during treatment and on 5th product purchase recieve free gift (usually a tester size product that we're featuring that month - if suitable for their skin - or one of dermalogica's soy candles)

 

[ADiva1]

I wanted to by the dermal clay cleanser from a beauty salon near where I live. They were selling it for about £20ish. I told them that it was on the net for £15ish and they were happy to match the internet price. So, I guess that it is a possiblity that salons/therapists are losing out from the internet sales, which are cheaper.

The salon owner said things will change this year re: Dermalogica products being sold cheaper on line, as Dermalogica will step in! Dont know how and when!

 

[Martin Duffy]

I agree with you Bombini, I can't believe a professional would source products in this way. Salons don't "charge the earth", they charge what the skincare company sets the retail price at, often making very little in the way of profit (much less than retailers make on clothes etc), and this money is what helps keep many struggling salons afloat.

 

[kirstys beauty]

I stock Dermalogica but I have only one client that was buying on line so to get her to buy from me I just priced matched and she now buys from me on a regular basis and it does not appear to make that much difference to my profits. I don't advertise that I price match so if some one does not take a product I just ask them next time I see them, how they are getting on with the samples and then they ten to tell you they have brought off the internet.

 

[essentia]

Hi I really think that Dermalogica and other skincare companies like them should take responsibility for selling to bona fide salons only. Most online sites selling cheaper products are not salons. They are a big enough company to vet who they are selling to and stop accounts if they want to!! What used to make me laugh was an ad campaign run by them (if anyone remembers) with a therapist saying it is her business and she is taking it back - if it truly is for the therapist then these types of online sellers would not be sold to would they?

 

[charles1902]

After reading many replies, which is much appreciated by the way.

Myself and my business partner agree, that we are going to campaign to Dermalogica to stop supplying web based businesses, as Dermalogica promote that they sell only to Qualified therapists who can perscribe treatment product. We understand that some spas are offering incentives and price matching, but why should we have to, when we put so much effort into promoting whole Dermalogica range to OUR clients.

In the last month we have discovered that at least 12 of our clients are now buying off the net, from companies based in Jersey. We have in the past rasied this with our Dermalogica rep, but still feel a lack of support.

We are asking everyone who feels that they are being effected by this issue to contact Dermalogica direct. Dermalogica do have choices they can reduce the wholesale price to salons so we can price match and make the same profit margins however this cheapens the brand (which I am not in favour of) or stop supplying to these sites!!!!

Also going to campaign on Facebook to try and help us small salons!!! So keep your eye out!!!

 

[Curly Bamboo]

I find the pricing issue very frustrating.

Dermalogica said they weren't going to sell in department stores and they allowed for an account to be open in Selfridges!

At a Dermalogica business event recently, the Rep said under EU regulations they can not fix the RRP as this is anti-competitive.

So we asked why do they supply to these big on-line stores like the Beauty Flash and the one based in Jersey. The Rep said the on-line stores are salons with treatment rooms with qualified therapist and they have chosen to trade on-line. Dermalogica can not restrict how a salon chooses to trade.

The Dermalogica brand is about professional advice through face mapping and home care. How is this achieved by the discounted online stores?

They also said they are trying to put a stop to professional products being sold on ebay. They have an employee who's job is buy off ebay and trace the product to the seller so they can close down the account. In the past year I have not seen any results.

Dermalogica is in a win-win situation, why would they bother with us small businesses? I have lost faith in them even though I truly believe in their products.

 

[Lynne Baker]

This was part of the reason that I chose to go with a company who supply ONLY to salons which they have visited and verified. I'm allowed to sell online, but not through eBay without their consent.
I think it's right that you Dermalogica stockists should campaign to them about this, but I fear they may think, well, business is business, whether it damages their reputation or not.
It's a shame that they've probably got too big to care about their smaller businesses.
Good luck!

 

[fozzyo]

Do the smaller businesses need to make themselves heard with a common voice? Surely there must be enough people with enough connections with the professional press to raise this as a story / issue for them to take up at a high level with, not just Dermalogica, but a selection of the skincare companies.

 

[jax]

Very interesting thread!
Do the online retailers get a better wholesale price from Dermalogica than the salons? I suppose they would if they were buying in bigger bulk, and with far less overheads in most cases the online sales are much more profitable I would imagine.

Doesnt seem fair does it. I think this problem lies with Dermalogica, it doesnt sound especially complicated to design a wholesale pricing structure based on what sellers are offering to Dermalogica clients????....or is it.
ie. - web based only sellers receive wholesale price 'x'
- salons offering face mapping etc receive wholesale price 'y' etc etc

I'm sure the brand benefits hugely from one to one expertise offered by trained therapists in salons - clients get the right product so they keep buying Dermalogica. In my view Dermalogic need to reward salons for this service they are providing at their own cost, to allow them to be competative. After all if salons were'nt supplying the Dermalogica brand, then Dermalogica could no longer call itself professional only...(which is a little misleading in my view already, how can a pro brand be bought from a bonefide internet seller??????)

Baffling.

 

[bexi]

Beauty flash are linked directly to a salon, I have brought them up with my rep repetedly. They are technically not doing anything wrong...unless you count devaluing the brand!

I get so frustrated with Dermalogica, they are such a good company to be with apart from the web selling thing.

I personally haven't lost many to online by offering different promos. At the moment its buy two products get a free facial. Just adds interest.

TBH there isn't much we can do except leave Dermalogica, unfortunatly its like it or lump it. Dermalogica are making far too much money from these web sellers because they sell huge volumes so why would they stop?

I am NOT saying its right btw!

Becki xxx