Brand investment with Marie-Louise Coster

Choosing the products you are going to stock within your business is very exciting; it's a time to research, try, test and meet with different brands. Products are an investment and you need to invest wisely so really take your time when selecting your brands.

Have a criteria of what you want, not just from the product itself but also from the company behind the brand. They will have a criteria that you have to meet as one of their stockists so why shouldn't it work both ways?

When I was first selecting the brands I was going to stock I made a list of what I wanted from that product and what I wanted from the company that supplied that product. We will all have different criteria but for me the skin care and body care products that I stocked had to be organic and that was non-negotiable. Ideally I wanted to deal directly with the company that produced said product and not deal with a distributor. Luckily for me the brand I chose ticked both boxes.

I also wanted a brand that could not be bought in a department store, at another salon close by or on a television shopping channel - these would not work for me as it is difficult enough to maintain retailing loyalty from clients without them being able to buy it everywhere, often cheaper.

When making your own list write it in order of importance, the higher priorities on the list are a must, the lower ones you may be able to compromise on.  What you must always keep at the fore front of your mind is that it is the brand that will reflect the image of your salon and the level of staff within it, and it is the brand you stock that will often attract clients in the first place.

If you stock something no one has ever heard of or a cheap product from the local wholesalers it won't do much to attract potential clients to the business. However, if you stock brands that are very well known or something with a unique selling point (i.e. organic, vegan, natural etc.) you will attract clients who are specifically looking for that.

Factors to consider when selecting a brand:

Cost – not only does the product have to be cost effective to you but also to the client. These are still difficult times and although clients are still spending how many products are you likely to sell at £100 plus? Clients are shopping around and want more for their money, if the product that is costing them a premium price isn't doing what they want it to do or they can use a cheaper alternative that is as effective, then they are going to try it.

Profit – what is the mark up for you? Retailing is an extra way of increasing your profit without having to physically carry out any more treatments, after all there are only so many hours in the day.  However, if the mark up is only 5% on what you have paid for it is it worth the hard sell to the client?  Have a minimum profit margin in mind when it comes to retail products.

Treatments – the brand you choose may have fantastic products to retail, with a great profit margin, but the treatments that have been devised by that brand may be a little sub-standard.  Is this where you compromise or is the treatment service more important than the product itself?  Clients are seeking the ultimate experience and this is the one thing that will set you apart from your competitors and also the very thing the client can't achieve herself at home with product alone.

Competitors - What do your nearest competitors stock?  You don't want to stock the same, equally if there is a brand you really like, find out where the nearest stockist is and also if they have a ‘mile radius clause' to ensure that no one near you can stock the same brand. This is only fair on everyone and gives each salon a good chance to establish their business and client loyalty.

Support – are the company behind the brand supportive of their stockist? Do you receive free training? Regular visits from an area manager? Up-date / refresher training?  Complementary in-house training? Incentives for staff etc.?

Marketing – are the company good at marketing and advertising nationally? Do they promote themselves at trade shows, online and in consumer magazines / Sunday papers and supplements?  Do they provide you with good marketing materials to promote the brand within the salon, on your own website and provide you with visuals for advertisements?

Other factors you may consider for your chosen brand to fit in with the ethos of the salon could be are the products organic? Are they Paraben and Sulphate free? Are the ingredients ethically sourced? Are the products British? Is the packaging made of recycled material? Are the products available online at a discounted price? The list goes on and each of you reading this will have different factors that are important for you.

Research the products well and take your time making an informed decision; I recently had a student here on a course who chose a brand and spent around £5,000 on an opening order only to decide six months later that she preferred another brand!  Although she managed to sell most of the products on she had to alter her pricelists, website, advertising etc. and even more importantly she now had to convince her client that although last time they visited she said the other product was the best thing ever, now this new product is…on't make the same costly mistake.

Even if it takes you a little longer to choose than you had anticipated don't worry, be sure you have made the right choice for your business and your clients.

Marie-Louise Coster is a Beauty Therapist, Trainer and Business Consultant, with over 20 years' experience in the industry. All About Mi Beauty & Holistic Training School is ABT-accredited.