ON DISPLAY

You cannot underestimate the important part that merchandising plays in your overall retail sales strategy, explains salon business expert Liz McKeon

Merchandising is a proven, effective way of increasing sales in your salon. All it requires is forethought, preparation and an understanding of your clients’ behaviour. Merchandising encompasses everything that you do to promote and sell your products in the salon.

Since the sales process often starts with the eyes, retail merchandising typically involves presenting products in a visually favourable light, to try and encourage purchases. It can be described as the practice of promoting a product or brand through the use of advertising promotions and other marketing techniques. It is a key component of any retail business, and is used to increase sales.

Merchandising strategies

Some of the most popular ways to entice buyers to purchase include:

• Window and in-store displays

• Grouping related products together

• Shelf signage

• In-salon ads featuring the merchandise

• Samples and giveaways

• In-salon promotions and demonstrations

• Well-stocked shelves

• Spotlighting promotional items

Focus on cleanliness

Making sure your products look appealing is key to effective merchandising, but remember to check how the rest of the space looks. For example, ensure you have the following:

• Clean floor and aisles

• Dust-free shelves and products

• Products that are neatly stacked

• A sense of organisation, rather than overwhelming chaos

• Related products set up together to suggest how they might be used

• Enough elbow room for clients to browse and move about comfortably

Benefits of merchandising

Merchandising goes way beyond just moving stock around – it involves space-planning and product-staging.

Some salons invest in professional visual merchandisers to come in and spruce up displays, and they find that this cost pays for itself with increased sales. Effective merchandising can result in:

• Higher sales

• Faster inventory turnover

• Clients spending more time at your retail area

• Happier clients

• Increased client loyalty

Salons that focus on their retail space, and present products that clients are frequently looking for in a professional manner, will find those same clients returning for homecare, gifts and gift vouchers on a regular basis.

Providing you have the stock, retail sales can generate a limitless source of income for your business. Once you get your retail area and stock management systems in place, provide your team with some product sales training so they are all comfortable in this area. This will be the final piece of the retail jigsaw to complete in order to tap into this limitless revenue division for your business.

The five ‘Ps’ of merchandising

1 Planning – establish the goals and objectives of the merchandising strategy and develop a plan to achieve them. Put together a strategy to design customised promotions, which not only boost sales, but deliver a superior standard of customer service.

2 Positioning – craft a clear, compelling positioning statement that differentiates the product and/or service in the mind of the client.

3 Promotion – develop and execute marketing tactics that will drive both awareness and demand.

4 Pricing – set the right price point to maximise profit and appeal to the target client.

5 Placement – ensure the product is placed in the correct location in the retail area to maximise sales.

These ‘Ps’ are still incredibly relevant and can be even more powerful with the right use of sales analytics.

Never forget just how much your clients love to buy your homecare products, not least because you are the expert and can make recommendations to help them solve their various concerns, perfect their homecare regimes and achieve the results they deserve.

So, make sure your retail area is part of their salon experience and that you have followed a merchandising strategy. Effective merchandising can help a salon owner grow their brand, compete with others in the same market and stay competitive in any economic conditions.

Liz McKeon is an author, business coach, trainer and mentor, specialising in the hair, beauty and spa sector. For further information, visit lizmckeon.com or call +353 86 386 1243.