RRP & retailing

[RED STAR]

I'm finding retailing really difficult of late....
Even my regular client's are buying on line as they can buy it cheaper than I am selling it for!

I've done the 'cautionary tale' thing....informing them that it might not be the real deal....
But still the lure of CHEAP seems impossible for them to resist.

And of course, not all the 'Bargains' are knock offs.......we've all had a little lookie, and can see all the big brands available online, for less than the rrp.
Being a small business, I'm unable to enjoy the discount's larger organisations demand, making it seem like I'm over priced!

My question is, how many of you are sticking to the rrp.....or are any of you having to lower/price match in order to make that sale.

 

[Zoey92]

I get so frustrated by this. Im situated in a small area, good steady flow of clients & regular walk ins (when I'm available)
But....will they heck buy retail in my area & i do supply Quality products at more than reasonable prices. Sometimes quite lower than RRP, I've tried everything.

Also as for people buying off the Internet i overheard a client telling another she bought her "Lamp & Gel polish online & applys it herself"
Us small businesses dont stand a chance these days with all these 'bargains' online

 

[Passionate about skin]

I get so frustrated by this. Im situated in a small area, good steady flow of clients & regular walk ins (when I'm available)
But....will they heck buy retail in my area & i do supply Quality products at more than reasonable prices. Sometimes quite lower than RRP, I've tried everything.

Also as for people buying off the Internet i overheard a client telling another she bought her "Lamp & Gel polish online & applys it herself"
Us small businesses dont stand a chance these days with all these 'bargains' online

This is a real problem and is set to get worse in my opinion . Large brands are keen to increase their market share and get a larger piece of the pie so are happy to open new accounts to salons in the same town some of which are next door to each other ! . Once they aren’t longer “ salon only “ brands and are happy to go into department stores and on tv channels such as QVC and also supply on line businesses which can reduce their prices massively , then the smaller salons and businesses will continue to loose out on retailing .
Choose your brands carefully and don’t be afraid to remove that brand from your salon offering if they are not supporting you . Keep your margins up or we will all be busy fools . !

 

[RED STAR]

This is a real problem and is set to get worse in my opinion . Large brands are keen to increase their market share and get a larger piece of the pie so are happy to open new accounts to salons in the same town some of which are next door to each other ! . Once they aren’t longer “ salon only “ brands and are happy to go into department stores and on tv channels such as QVC and also supply on line businesses which can reduce their prices massively , then the smaller salons and businesses will continue to loose out on retailing .
Choose your brands carefully and don’t be afraid to remove that brand from your salon offering if they are not supporting you . Keep your margins up or we will all be busy fools . !

Exactly...but what do we do...?
I feel like I'm fighting a loosing battle, and the temptation to price match, or be left with 'old stock' is ever on my mind.
I've just opened a new shop, and in order to offer something my competitors didn't have, I bought in a beautiful make up range.
All good, I love it, my staff love it.....we've done the course, bought the T shirt etc....
Offered the 'taster' make-over.......

"Wow, that's lovely, looks good, feels good...., very tempted....how much?"
"Ouch,,,,, as much as that....well I won't take any thing to day, I'll have a think about it and
get back to you..."
Next appointment.
"By the way I bought that make up you showed, I got it on line - it was much cheaper -
20% off the rrp, free p&p and with a free gift thrown in!"

 

[squidgernetball]

We retail a lot and it’s available online. When I do make up, I don’t tell them the colours I’ve used, I make a note of it on their records. If they ask me directly I go a little vague and say “if you want to buy the products, I can take you through the colours” which works. I’m afraid I’m not prepared to be a showroom. I do the same with skincare. I tell them we can dramatically improve their skin but won’t tell them what products they need.

I always give them LOTS of information as to what these products do and how effective they are - something the internet doesn’t do. I do mini, post facial makeovers. Super quick and they look fab but I never share the colours (I may make a note but don’t tell them).
Finally, I have pretty much everything in stock for impulse buys.

No, we’re not on the high street. We have people travel from all over to our salon. We do have some regulars who will occasionally purchase online and I reiterate that they can’t be guaranteed of what they’re buying. There was a great pic on a Facebook group showing a nail salon where the woman was caught filling the OPI nail varnish bottles with a large bottle of a generic red nail varnish. Just because it says “brand name” on the bottle, doesn’t mean that’s what’s inside.

And having said all that, we occasionally do do discount days. We’ll do a one day only 20% off and we can take an awful lot of money in that one day. We email clients and we text them to let them know. They have to order and pay in that day. We do free p and p for all orders so they know there are no hidden costs.

Retail is doable. I definitely think it’s harder with hair than beauty, but in 3 years of visiting my hairdresser he hasn’t recommended one product, once, ever. And he doesn’t take cards, but then I don’t know how you expect to retail anything if you don’t take cards!! Hey ho.


Vic x

 

[CFBS]

Yes, retailing is far harder than it was years ago due to the internet and the supermarkets stocking salon brands.

I try to stick to brands they can't easily get yet but I also think that there are less clients willing to pay £50 for a 30ml pot of face cream even if they can afford it.

The hair salon I go to as a client, stopped stocking any retail products years ago - which is a shame really but I can see why

 

[Passionate about skin]

Yes, retailing is far harder than it was years ago due to the internet and the supermarkets stocking salon brands.

I try to stick to brands they can't easily get yet but I also think that there are less clients willing to pay £50 for a 30ml pot of face cream even if they can afford it.

The hair salon I go to as a client, stopped stocking any retail products years ago - which is a shame really but I can see why

We also stock Jane Iredale and have noticed many clients come in the salon to look at and try the products on our lovely large and very expensive tester stand and then go and order it online . That really frustrates me but you can’t stop them looking . Now when I do make up consultations or patch tests for colours I charge £20 redeemable against purchase as it’s my time and expertise they are using and if they do t want to pay that then they are not interested and I can make more money doing facials , needling , skin peels etc . I don’t advertise the fact theyvwecfo wedding make up any more either as we don’t make much on that either . Make up clients are very fickle and not loyal they go for colour and texture and packaging not ingredients and benefits etc like skincare . Look at how many different brands of lipstick we have in our own make up bags ladies !
Maybe you could do a Gwp and give an item free thatvyiu want to get rid of rather than discount everything or do a one off discount day day -10 % and donate a bit for a charity and get your clients engaged in that ? . Good luck .

 

[jamiereid92]

If the client is excited about the product enough they will buy it there and then. It's not just about them liking the product and understanding what it does, there needs to be emotion as well. If they leave without buying they are not coming back for it.

It's hard to compete with lower prices but that's why we need to look for salon only brands even Moroccan oil is online now! Paul Mitchell you can get in sallys.

These big companies don't care about us.

 

[tracy1976]

We are no competing with Online sales, they often do offers and free delivery! Unless it is a salon Professional product I wouldn’t stock it in my salon!

 

[Eloise86]

Schwarzkopf are just bringing out a salon exclusive range (not even for wholesale). I price my prices in between the RRP and online price and hope they like the convenience of it being here for them. Obviously I don’t make as much on it which is pants considering we don’t make much on it anyway and have to stump up the money upfront and buy packs of 3 or 6s to have it sitting in cupboards and shelves. But I’d rather have it there to sell and be able to offer my clients professional products than not have them. I’m in the process of cutting my stock down atm which I think will help. Doing offers on the things that have sat there for months. One of my clients bought a 1000ml shampoo online cheaper than even I can buy it! She said ‘you should buy it online for the salon’ my reply was chances are if I can’t buy it at that price it could be tampered with, very old stock and that my insurance company probably wouldn’t insure me if there was something wrong with it. Xxxxx

 

[RED STAR]

That's the thing.....
EVERYTHING.....including salon only - as that's what I stock - is available on line, like it or not!
OLAPLEX being one of them....
The 'real deal' or 'lookie like', folk will still buy because it's cheaper!

If we are price matching, our profit is very small...and as I buy direct, 6 is the minimum I can order.
Even if we are left with 1, that could mean zero profit...or even a loss....

A client recently said to me
"I know you put a high mark up on your retail ....but because I've known you for years, I'm happy to help you out!!!!!"
WTF!!! .......HIGH MARK UP!

 

[Eloise86]

That's the thing.....
EVERYTHING.....including salon only - as that's what I stock - is available on line, like it or not!
OLAPLEX being one of them....
The 'real deal' or 'lookie like', folk will still buy because it's cheaper!

If we are price matching, our profit is very small...and as I buy direct, 6 is the minimum I can order.
Even if we are left with 1, that could mean zero profit...or even a loss....

A client recently said to me
"I know you put a high mark up on your retail ....but because I've known you for years, I'm happy to help you out!!!!!"
WTF!!! [emoji35].......HIGH MARK UP!

People can be arrogant and generally have no idea. I buy my olaplex from salon services now 3 at a time as I won’t do the 6 from star qualities. I make about 3-4 quid off per item off my retail but I have to buy packs of 6 generally and I can have stock sitting there for months. But then ppl think I make loads of money cz I run my salon from my garden that I take all of it for myself, to the point I don’t get tips any more as they think I’m ‘rolling in it lol’. My salon costs me £200 a week to run not including the extra we took out on the mortgage to finish the building as it totalled at £35k in the end! That’s also not including anything for maintenance either. But yes, I’m so loaded [emoji30] xxxxxx