Next door salon offering same product

[Salon above]

Hi, I wonder if you can help or point me in the right direction?

I purchased a new cosmetic system over a year again, cost of approx £1200 and then have purchased stock on a very regular basis, I was granted exclusivity for my town.

I have spent over a year becoming known for this product of which i work extremely hard on promoting and advertising it. 3 months ago the salon directly next door to my salon started offering the same treatment/product purchased from the same company.

I have spoken to the company, they have not even apologised, they say I have no exclusivity (I have it on email from the owner), they say they made a error in putting it in and didn't realise it was next door, they have offered me a 20% future discount.

I do not have any faith in this company and feel that they have taken my money and lied to me. It's very unethical to sell into a salon directly next door. They have been very underhanded.

What protection is there for the independent salon owner, who can help with this situation? I have never come across a company that has acted in this unprofessional manner.

I would appreciate any advise. Who is looking after the interests of the salon/independent business owner?

 

[BannerPenguin]

If you have it in a written e-mail from someone in a position of power then you can take them to a small claims court for breach of contract I believe.

 

[Salon above]

Thank you BP but small claims wouldn't even cover monies lost and future income. I do have an email from the owner of the company regarding exclusivity.
Who is out there that can help us fight these unethical companies?

 

[BannerPenguin]

I am sure this can be fought but I would think is talking about substantial amount of income loss than I would get a solicitor, and a good one at that! They can normally offer a reasonable/free consultation if you take what you have and get there advice/opinions on the matter and see if they think it would be strong enough to win a court case. However there's no limit to how much it may cost you in the long run but again solicitor can advise further and don't hesitate to question them on there fee.

 

[EmJZ]

how incredibly unprofessional and just plain ignorant! I would be extremely angry too!

I would drop their line immediately and try and find a better company to deal with. And like BannerPenguin said, talk to a solicitor!

I hope you're able to get this sorted out quickly :hug:

 

[geeg]

Do you really think that clients go to a therapist just because of the product they use??

We nail technicians get no exclusivity and face competition all around with the same products being used .. but the magic happens in the skilled hands of the technician not just the product!

I'd take the 20% off all future orders and get it in writing; that is not an offer to be sneezed at in my opinion.

I personally do not think the company has been unprofessional .. I think they made a genuine mistake and offering you a 20% discount on the cost of your products is a generous compensation for that mistake.

If you have a great reputation for what you do with those products, then why so frightened of a bit of competition?

I think it is a silly suggestion to tell you to DROP the brand immediately ... huge expense and very inconvenient and not as easy as it sounds. You would have to re-brand. re-train, explain to all your clients who like the brand etc etc. Let your disappointment go and think it through with a business head instead of acting emotionally, is my advice.

 

[EmJZ]

fair enough Geeg. I totally understand your points on the hands of the tech being a major factor. BUT, she's stated it's the salon next door. That to me is a bit more than normal competition. I would stop stocking their product if I were in her shoes....meaning, I wouldn't order anymore and begin phasing in a new line. Where the 20% is a genuine offer, I still feel it's unprofessional to not apologise for one, and two for not keeping proper records of contracts they have with salons. If they had done this, there might not have been this mistake.

 

[geeg]

fair enough Geeg. I totally understand your points on the hands of the tech being a major factor. BUT, she's stated it's the salon next door. That to me is a bit more than normal competition. I would stop stocking their product if I were in her shoes....meaning, I wouldn't order anymore and begin phasing in a new line. Where the 20% is a genuine offer, I still feel it's unprofessional to not apologise for one, and two for not keeping proper records of contracts they have with salons. If they had done this, there might not have been this mistake.

They should have apologised and they should have checked too, but that didn't happen. Under the circumstances I think 20% off all future orders is well worth it and is a form of apology in itself, isn't it?.

Why should all the clients go running next door to someone they do not know? Would you if you were happy with your therapist? I wouldn't.

Over the next few months I would keep good salon records, see if it has made any difference/impact on your business and ONLY THEN would I make a decision to keep or to change.

Always "take the high road" if you can.

 

[Salon above]

Thank you for your reply's... I use other brands which other businesses use but the main reason I bought into this company was because of the exclusivity, of which they are now in breach of contract.
Geeg, no I don't think clients use therapists just because of their product but I have spent over a year promoting/advertising on this product. My clients wont go next door but future trade might do as i am positioned above a hair dressers and they have the shop front next door and are already advertising in there window, they will take my business or will give the product a bad name as they are inexperienced. Do you think it's fair that a product company can take your money, breach contract and set the salon next door up in business?
EmJZ, I have today spoken to solicitors today and they feel I have a good case. We can not keep letting these companies hold us to ransom.

 

[geeg]

Thank you for your reply's... I use other brands which other businesses use but the main reason I bought into this company was because of the exclusivity, of which they are now in breach of contract.
Geeg, no I don't think clients use therapists just because of their product but I have spent over a year promoting/advertising on this product. My clients wont go next door but future trade might do as i am positioned above a hair dressers and they have the shop front next door and are already advertising in there window, they will take my business or will give the product a bad name as they are inexperienced. Do you think it's fair that a product company can take your money, breach contract and set the salon next door up in business?
EmJZ, I have today spoken to solicitors today and they feel I have a good case. We can not keep letting these companies hold us to ransom.

As I said, I think they have made a genuine mistake, and no I never said it was fair. If you have the time and energy and money to go and get after them then go on and pursue them; I wish you luck. But if you do not, then 20% isn't a bad offer.

 

[Salon above]

I fail to see how you come to the conclusion they have made an honest mistake. They have sold to the salon next door, that is the mistake, they have details of their customers...I find your post very odd

 

[geeg]

I fail to see how you come to the conclusion they have made an honest mistake. They have sold to the salon next door, that is the mistake, they have details of their customers...I find your post very odd

Very easy to miss on a system that the address is close to another unless you have that facility in the system. That takes a pretty sophisticated system.

I try to see both sides, but can totally understand why it is aggravating to you. As I say .. go for it if you have been legally advised to do so. Depends on how much time, energy and money you want to throw at it. If you have the time, the energy and the money, and you think it is worth it then go for it.

 

[EmJZ]

They should have apologised and they should have checked too, but that didn't happen. Under the circumstances I think 20% off all future orders is well worth it and is a form of apology in itself, isn't it?.

Why should all the clients go running next door to someone they do not know? Would you if you were happy with your therapist? I wouldn't.

Over the next few months I would keep good salon records, see if it has made any difference/impact on your business and ONLY THEN would I make a decision to keep or to change.

Always "take the high road" if you can.

totally understand your point of view. I'm probably a bit more hot headed than needed sometimes....I just wouldn't want to deal with the company anymore....burn me once, shame on you ..... burn me twice, shame on me

 

[EmJZ]

Thank you for your reply's... I use other brands which other businesses use but the main reason I bought into this company was because of the exclusivity, of which they are now in breach of contract.
Geeg, no I don't think clients use therapists just because of their product but I have spent over a year promoting/advertising on this product. My clients wont go next door but future trade might do as i am positioned above a hair dressers and they have the shop front next door and are already advertising in there window, they will take my business or will give the product a bad name as they are inexperienced. Do you think it's fair that a product company can take your money, breach contract and set the salon next door up in business?
EmJZ, I have today spoken to solicitors today and they feel I have a good case. We can not keep letting these companies hold us to ransom.

good luck to you! hopefully you find a solution that puts you at ease!

 

[Salon above]

Totally agree with you EmJZ.

The company is not that big that they have lost me in the system, I have dealt with the owners from the beginning. In fact one of them was in my salon only a month ago doing training with my therapists... Respect to you for backing up the company's that supply us mere therapists Geeg. In ref to throwing money at the legal situation, I hope they have enough to invest in defending themselves. Breech of contract is serious and these companies should be looking after their customers. I would not treat my clients in his disgraceful manner, I'm a professional.

 

[geeg]

Totally agree with you EmJZ.

The company is not that big that they have lost me in the system, I have dealt with the owners from the beginning. In fact one of them was in my salon only a month ago doing training with my therapists... Respect to you for backing up the company's that supply us mere therapists Geeg. In ref to throwing money at the legal situation, I hope they have enough to invest in defending themselves. Breech of contract is serious and these companies should be looking after their customers. I would not treat my clients in his disgraceful manner, I'm a professional.

I wish you absolutely the best of luck believe me. I'm not backing the company .. really I'm just covering the good and the bad and trying to understand it .. I'm sure I dont know the half. Anyway they sound as if they have a tiger on their hands and I really mean it when I say I wish you luck. it's from the little acorns that the big oak trees grow ... dont you know. Always look after the little guys as well as the big guys ... very important.

 

[Petit Basque]

Totally agree with you EmJZ.

The company is not that big that they have lost me in the system, I have dealt with the owners from the beginning. In fact one of them was in my salon only a month ago doing training with my therapists... Respect to you for backing up the company's that supply us mere therapists Geeg. In ref to throwing money at the legal situation, I hope they have enough to invest in defending themselves. Breech of contract is serious and these companies should be looking after their customers. I would not treat my clients in his disgraceful manner, I'm a professional.

I really feel for you and think you have been treated very unprofessionally and also cannot see how this can possibly be a "admin" or "system" error. The very same thing happened to a fellow therapist I know and she was mightily hacked off I can tell you

My unique selling point are my electrical facial treatments and I do not endorse or retail any products whatsoever mainly because of your own experience. I use professional skincare simply to support my treatments.

I think that far too many skincare and cosmetic product companies get therapists and salons over a barrel and then start dictating minimum orders, retail sales targets, price rises and then before you know it, the "exclusivity" you thought you had doesn't actually exist!

As you have the assurance of exclusivity in an email, you might want to speak to a solicitor on one of these free 20 minute legal surgeries and see if you have a case but I other than firing a shot across the bows, I wouldn't be tempted to spend a fortune pursuing them. If anything, I would be interested to know if I could claim compensation and then switch to another cosmetic product company as this one obviously cannot be relied on!

20% off future order may seem tempting but as they have already reneged on exclusivity, you can't be sure that they will honour it in the long run.

Now might be an opportunity to think about a different cosmetic product line or perhaps even better training in new techniques and/or treatments. As hard as it might seem at the moment, try and take a step back and see if you can take your salon and treatments in a different direction and well and truly set yourself apart from the competition.

All the best...
PB
xxx

 

[squidgernetball]

I'm intrigued - this isn't a skincare line, but a cosmetic system - what is that???