Hair salon products that are new to the market have higher margins and thus, make YOU and your salon more money! Yup, even in the internet age where people can compare prices in a second with their smart phones, only one method works for getting higher margins: new salon products.
Here’s why:
1) New hair salon products often cannot be found on the internet. If they can be found, the information is sparse. Many places don’t sell the product and many more won’t even know it exists yet.
2) Because products cannot be found, prices cannot be found. This means you can have a higher markup without encountering resistance.
3) Competition hasn’t driven the prices down yet. The longer a product is out, the lower the cost (and margins) of the product. Each competitor works on shaving the price down until there is very little money to be made. Some of these low margin products are ones you have to use, and that’s okay. Figuring out which products can be replaced with a newer one will help to offset those low margins. If you use more products with higher margins your overall profits will increase.
4) Your expertise is more valuable when a product is new, meaning your customers will rely on you. You will likely be the only source your customers have for these products and your knowledge on how to use the products is invaluable. Introduce new salon products, teach your customers the benefits, and reap the rewards.
5) When hair salon products that are new to the market are in your salon, it ensures that you will be at the forefront of the industry, and your customers will know it. Given the choice, most customers want the best. You will be providing the best products and the best information, thereby showing your passion for what you do. That makes YOU the best salon to go to.
Being at the cutting edge of your industry takes a little effort on your part, but the benefit to you and your customers is huge. Part of what gives you value as a salon owner is having the newest products, info, and techniques to make your customers’ lives better. If you want to stay up to date with industry trends and products stay tuned! We will be providing information on these topics regularly.
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