Incremental Revenue

Incremental revenue, a topic I have looked at many times over the last few years. The idea of generating an additional revenue stream is nothing new, big retailers have always done it, anything they can think of to encourage customers to purchase additional items is put into practice. Online stores do the same. Now it’s the turn of salons to embrace the concept and help put more cash in the till!

Big retailers always look at the shopping experience and what can be done after their customer has got the items they went shopping for, they want you to keep shopping. We have all succumbed to the (subliminal) impulse purchases as we wait our turn in the queue at supermarkets, chemists, and fashion stores.

1. Primark is the classic example of getting their customers to purchase additional goodies. From wet wipes to sports socks, water bottles, hand sanitiser and more, everyone pops one or two extra items into their shopping basket.
2. TK Maxx does the same, only they focus more on sweets, savoury snacks, candles, diffusers etc.
3. That big chemist does it too, with stands that have special offers available to grab as you wait, usually at a greatly reduced price.
4. Supermarkets always have something you throw onto the conveyor belt as you unload.
5. High end dept stores also have these impulse products for you to purchase without even thinking about it.

Online stores have their own versions as well.

1. Amazon go for it, whether it is insurance for a big item, or a discount for subscribing to a monthly delivery of something, or a link to items other people have purchased with the goods you currently have in your (online) shopping basket.
2. Asos always shows the full outfit with links to the products you have not looked at.
3. MoonPig takes you on a long journey before you reach checkout, offering a vast array of goodies to add to any card you may be sending.
4. Looks Fantastic, Trinnie of London, these ‘beauty’ companies invariably always offer a free gift when you spend a certain amount.

Salons have the opportunity to use these tactics to help generate additional income as well. There are lots of impulse purchases that can help the business coffers!

In the current climate, every penny is a prisoner, not only for salons, but also for clients, so offering good quality, value for money add ons has to be a win win. That good quality doesn’t necessarily mean cheap by the way.

What are some of the impulse purchases salons could carry that might help generate additional sales:

1. Combs and brushes – they are a must have!
2. Hair dryers – whatever dryers the salon uses should be available for purchase, but in an ideal world there should be a mix of price ranges, not everyone wants a £300 dryer.
3. Straighteners, wands etc – same as above!
4. Invisibobbles – naturally!
5. Hair accessories – something to add a touch of glamour …. Balmain Hair Couture definitely do this well.
6. Travel size products.

And then, think outside the box and look at:

1. Candles and diffusers.
2. Jewellery, affordable costume pieces.
3. Scarves – a fashion staple.
4. Umbrellas – maybe not at the height of summer, but a must stock when the seasons change.

And from an aspirational perspective there should be some ‘luxury’ items that entice clients:

1. Beauty Products – Salon Promotions have just launched a skin care range exclusively available in salon and spas.
2. Skin care.
3. Self tan.

The list is endless and it is very much down to salon owners to look at what might work best in their environment. Whatever you can do to generate incremental revenue has to be of benefit to the bottom line, and whilst selling 10 sets of invisibobbles isn’t going to set your retail world on fire, the truth is, it’s better than selling none!

As always I am happy to chat about potential product lines that might fit your business model.

#SalonProfessional #SalonExclusive #ProForPro