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Merchandising is a proven, effective way of increasing sales in your salon. And all it requires is forethought, preparation, and a thorough understanding of your client’s behaviour. Merchandising encompasses everything you do to promote and sell your products once the client is in your 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.

The practice involves using advertising promotions and other marketing techniques to promote a product or brand. It is a key component of any retail business and is used to increase retail sales, salon displays, pricing strategies, and promotional events.

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 always remember to check how the rest of the space looks. For example, are clients impress with:

• 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 to move about comfortably

Benefits of merchandising

Some salons invest in professional visual merchandisers to come in and spruce up displays and find that this cost pays for itself with increased sales. Merchandising goes way beyond just moving stock around, to space planning and product staging. 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.

At a certain point, your columns will be full. You won’t be able to fit any more clients in, as you have reached your full capacity in terms of treatments and services. Providing you have the stock, retail sales can generate a limitless source of income for your business. Once you have your retail area and stock management systems in place, team product sales training will be the final piece of the retail puzzle to complete to tap into this limitless revenue division for your business.

What are the five P’s of merchandising?

1. Planning: Establishing the goals and objectives of the merchandising strategy and developing a plan to achieve them. Put together a strategy to design customised promotions, which not only boosts sales, but delivers a superior standard of customer service.

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

3. Promotion: Developing and executing marketing tactics that will drive awareness and demand.

4. Pricing: Setting the right price point to maximise profit and appeal to the target client.

5. Placement: Ensuring the product is placed in the correct locations to maximise sales.

The five P’s of marketing are still incredibly relevant and can be even more powerful with the right use of sales analytics.

Liz McKeon, beauty business expert and founder of the International Salon Business School. www.lizmckeon.com