Should You Sell MLM Products In You Salon/Spa? A ReCap Of My Experience.
Another MLM "scheme"??? You, I and the lamp post are being inundated with Multi Level (Network) Marketers posting their goods on Facebook, asking us to join online parties and wanting to book appointments to sell us on these "proven" systems of residual income. Many of us are skeptical to these Multi Level Marketing "schemes" but many are making millions and there are certainly a lot of moms preaching the rewards of being able to work from home and make some money to contribute to the family expenses.
I have been very opposed to network marketing when it comes to hair and beauty products. Why? Because any soccer-mom turned "insert MLM company name here" sales consultant can recommend these products without having a cosmetology background. We, as cosmetologists, go to school to learn the science behind skin and hair care and I don't think that anyone who hasn't should be prescribing beauty products to the consumer. I work hard to assist in elevating the standards of our industry and these MLM companies that allow any Tom, Dick or Harry to sell their products are not helping with that. That being said, the number one place where consumers purchase their beauty products is the supermarket and I'm sure no one working there knows how to properly assess the skin, scalp or hair. In fact, salons and spas sit at #3 on the list for where consumers purchase their beauty products and the industry average for retail sales sits FAR below the goal for best practice; if we aren't selling to our clients, someone else is. If a client doesn't purchase a product from you, they will purchase somewhere else within 48 hours of leaving the salon/spa.
So about a year ago, I decided to run an experiment. Instead of poo-pooing on this sales method, I gave it a try. I wrote a 5 part blog series which you can read here: https://www.salonskipper.com/articles
Here were some of my initial thoughts upon diving into this experiment:
First and foremost, I am looking for a profit. I consider my retail space valuable and retailing helps me pay the rent. Upon doing my initial research on a couple of direct sales brands, I can tell you that we will not get the 40-50% profit margin that we get from our professional manufactures. Now, there are opportunities to make up to 100% profit by earning free product to retail, but this is dependent on signing up our clients for monthly direct shipping.
I am looking for a brand that speaks to my current clients or a market I want to target. Check. I haven't yet found a professional product line that also addresses the health of a client to encourage healthy hair growth.
I am looking for a reasonable buy in. Meaning I do not want to spend more than $1,000 on an opening order and I also don't want another line with a huge amount of SKUs.
I am looking for something "different".
I am looking for a "partnership".
After finding the line of products that were best suited to me, my experience, my business and my clients, I embarked on the journey of growing a Network Marketing business. Not only have I been retailing the products in my salon but also building a team. I can share with you the following stats:
Our retail sales (which sat at benchmark) increased by 10+ % and have stayed that way for the past year
95% of our online sales are to non-salon clients (this means clients of other salons who are not buying home care products from their own stylists)
We turn our inventory over approx 2x per month (industry average is 6x per year)
Monat accounts for 53%+ of all our retail sales (and we carry 4 lines). While the profit margin may be less, we sell far more Monat than any other product line on our shelves.
I have received tons of free product and earned two free trips to Vegas (working on a Bermuda cruise now!)
We have attracted numerous new clients to the salon because we now apeal to a new market (those suffering from hair loss, thinning hair, aging hair). Many began with product purchases and are now loyal clients
Not including our revenue from retail sales, I have been able to match my income from a previous sales job with comissions from the other salons I support and rank advancement/sales bonuses.
Now, one can not expect to achieve these results simply by placing the products on your shelves. As with any product line we choose to sell, you have to educate yourself and the clients and market the features and benefits of the products in numerous ways: signage, events, promotional treatments, etc.
If you'd like more information on getting Monat into your salon, please do not hesitate to reach out to me!
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