Professional vs. Retail Stores
George Schaeffer, CEO of OPI, had an idea years ago. His idea was to convert professional beauty stores to a blend of pro and retail stores. Half the store would be pro only. However, the other half of the store would be retail open to consumers. Pro’s would still be able to buy those products at wholesale prices but consumers could buy at retail prices.
For us, the advantages are that our 23 stores would be open to the public and our sales would increase tremendously. We also wouldn’t have to tell people who come into the stores that we cannot sell to them. It also allows professionals to bring their friends into the stores to shop.
For salons, it allows them to refer their clients to our stores to buy products they don’t want to retail. George’s idea allowed for commissions to go back to participating salons but that idea was difficult to manage.
Today, there are plenty of stores open to the public such as Sally, Ulta, Trade Secret and most drug stores and discount stores sell professional goods regularly.
The true question that begs an answer is this: How would salon professionals react if our stores went pro/retail? Based on the pros and cons, I am interested in your response. I know for a fact that many professionals regularly shop Sally and Ulta even though they pay a higher cost due to convenience. So I am hoping double standards doesn’t play into the decision. So what are your thoughts?
Happy Thursday!
July 24th, 2008 at 10:40 am
I feel that the professional sells retail to mainly loyal customers. I’ve heard retail is down everywhere due to diversion. Why not compete with Target and CVS. I feel salons do not necessarily need to institute a 100% markup on products. They could still sell their products cheaper then we would retail them for. Let’s go public! Just keep our hours the same, LOL
July 24th, 2008 at 10:49 am
I know so many of my friends who go to sally’s cause they can by there. I would tell them to come shop with us if they could. But since it is half and half on who can and who can’t, it makes sense to add that other 50% to the stores profits. I know many women alreadt have their friends who can by from us purchase the items through them anyway. This just opens the door for more clientel for business. I say YES, we should. You could make restrictions to certain product. Like the professional color and things like that, maybe only licsensed can buy. But everything else can be fair purchase!
July 24th, 2008 at 10:55 am
I don’t know about this. I have more negitive feelings than positive. I can just hear my customers now. We are tring to preserve their professionalism with giving them Kemon, something above all others and now we are letting the public in to see it. I know they can’t purchase it but it would pull away from their personal retail business. This could bring us a ton more money but it would also make a lot of stylists mad and probably not shop with us due to that. So I guess my question is…. Which is more important? make more money and open to the public or keep the beauty business exclusive and hold the integrity of the business at a higher standard. I personally Would like to see it remain the way it is. Maybe in the next few years it might be different but for now we need to focus on Kemon and the Pavilion.
July 24th, 2008 at 11:29 am
LG,
I’m sure from a total TNG perspective that it would generate a large inccrease in revenue. From a TISE only perspective I feel that it would go against the message that we support the salon’s interest vs. Loreal and it’s distributors. We stand for providing salons with products that the customers can ONLY buy at the salon. If we allow their customer’s to buy from our stores (albeit at a higher price), many salons would view this as TNG being in competition with the salon. Our competitors and customers could also view this as being a sign of financial weakness. It could allow people to say that with the loss of Loreal TNG is in financial trouble, and had to implement this concept to stay afloat.
Thanks,
Mike C
July 24th, 2008 at 11:33 am
Seeing I used to work for an “open to the public” business, I know the response from our customers would be nothing but bad!! I have heard it all,” that non licenced people should not be able to purchase color and pro products”, they spend alot of time and money to be in the profession that they are in. Our customers do not like going into that other place, they have said it is not fair that they sell to the public, I agree.
I support our stylists and our professionals, we should stay professional only.
We are a unique company and if we go public I feel we will be letting our professionals down.
July 24th, 2008 at 11:38 am
I agree with Kristi! Being a professional stylist myself, I would be upset to say the least for exactly the reasons stated above. Higher end items only available in salons helps us sell retail, which in turn helps our take home. When I’m not so busy with clients my totals can still be pretty decent with the sales from retail. Having exclusive brands already available in Target or local drugstores, makes it difficult to keep that retail commission with salons.
To be honest most of us “pro’s” only shop at Sallys when the “good” stores are closed or too far away when we’re in a pinch. As far as Ulta and others like it, “pro’s” don’t really look to them on a consistant basis.
Going to the salon for the “Experience” would no longer exsist if the wind was let out of our sails by letting the public be able to shop were the stylist does. It’s like going to the airport, and being let in the Northwest club. Everyone is not allowed in for a reason. From a professional standpoint I would lose faith in TIS, and consider it sort of selling out.
July 24th, 2008 at 11:43 am
What difference would it really make?
Professionals bring in their friends and family now and they are able to purchase at wholesale prices.
What happens when a licensed customer comes in with a non-licensed and the licensed person gets the wholesale price and his/her friend or family member can purchase at retail they will just have them ring it on the licensed persons account so they get the wholesale price, so really all I feel it would do is bring extra inventory and problems into the store.
We have licensed customers already complaining that we allow unlicensed people to pick up products for licensed people. They feel that non-licensed people should not even be allowed in the store.
July 24th, 2008 at 12:06 pm
Most salon and spa professionals I talk to are very upset that Target, Rite Aid, etc. are carrying professional lines. I don’t think they would be to happy if their clients could walk into a TIS store and go shopping either – this really would cut down on retail for salons and spas.
July 24th, 2008 at 12:10 pm
Some pros bring in friends and family, but it is not in masses, and not hardly enough to sell out and go public. If they complain about a select few coming in, what do you think they would do if we went public? Not a good idea!!
I do however feel that they should be assisted by their stylist if they are to come in. NO exceptions!!
July 24th, 2008 at 12:33 pm
There are A lot of people who go and get there hair done and have no idea how much the salons pay for a tube of color or the retail products. I can’t imagine them being very happy if they were able to come in and shop and found out that they’re paying $80 for a color when the tube only costs $6.
July 24th, 2008 at 12:54 pm
Larry…would going pro/retail mean we would be able to carry ALL pro brands in our Stores?
Say we did go pro/retail, the non-professional public could purchace their retail here, could we then buy our product in mass quantities at a lower price, and then pass the lower pricing on to our professionals?
July 24th, 2008 at 1:19 pm
Good point anonymous. I retract my statement. LOL
July 24th, 2008 at 1:30 pm
A small rebutle to those who feel this may be a negative. Having Sally’s as a main competitor is tough enough knowing that our clients and high end clients “still” shop there. We look at the possiblility that most salons feel this would bring down their retail. But let me ask this question, if you know our competitors have this concept available, then why do you still continue to bring them business and still refer clients to these stores? The loyalty would still be to the salons, but it is still a little hypocrytical to those professional stylists who still shop at the stores that allow non professionals to purchase from.
Should it be a huge deal, why not designate an of the store that only non professional clients may shop. Section the store off. So that way they are not able to see the pricing on professional items. But giving them the oppurtunity to still shop?
July 24th, 2008 at 1:41 pm
As a stylist, I would not be threatened by a Pro/Retail TIS Store. I would encourage my clients to visit TIS, and know that they would be able to see new trends and new products, and they would come into my salon more educated about their own haircare needs and services. I think it would actually be beneficial to the salon. Of course, I would undersell TIS retail prices, and expect some discretion with my professional pricing.
July 24th, 2008 at 1:59 pm
WOW. I am not sure what side I am on.
I would love to generate more business. However I would not want to upset my custo’s in the process.
Maybe you could open a few locations just for the public. To compete with the Alta’s and Beauty first.
Larry, I know you could do a better job then they did. Please. Have you ever shoped in one of there stores. One Big HOt MESS! Not to mention there staff. CLUELESS!!!!!
I don’t think cutting to store in half is a good idea.
July 24th, 2008 at 2:24 pm
I don’t think it would be good for the company to sell to the public. We have a great reputation for selling to professionals. Selling to the public would look bad. It would upset salons because it would take away from their business. I also agree with Anonymous, that it would allow the public to see how much professionals pay for products and that would make them unhappy seeing how much more they are charged for the same product. So I defintally think we should stay professional only.
July 24th, 2008 at 2:39 pm
Have seperate stores. One for the professionals, one for the public.
July 24th, 2008 at 2:51 pm
Over in Taylor, our customers feel like we are throwing them around. They are complaining they want a one stop shop. We don’t have it. They don’t like the fact that prices keep going up because they say they can’t raise their prices at the salon. They are upset when we can’t order something for them into the store. They don’t want to order through the catalog though because it costs them too much in shipping. The fact that we are professional only is probably one thing keeping them somewhat happy. If we went public, that would be one more thing we are “taking away” from them. For them to walk into our store and see one of their own clients…it is like we are betraying our own customers! We would be taking their business while trying to gain more for ourselves. We want our customers be to loyal to us and not stray to our competitors, so I don’t think we should become one of their competitors ourselves.
July 24th, 2008 at 4:02 pm
What about opening a small outlet store for our discontinued items to be sold to the public?
July 24th, 2008 at 4:12 pm
Open the retail stores under a differnet name.
July 24th, 2008 at 4:16 pm
BeBeautiful?
July 24th, 2008 at 4:58 pm
I think opening a completely different non pro chain is not a bad idea, as long as they stay seperate.
July 24th, 2008 at 5:04 pm
Some “professionals” have recently displayed their loyalty…..Or should I say lack of it.
July 24th, 2008 at 5:08 pm
I’m back again…..It would be a good way to get the Kemon brand out there.
July 24th, 2008 at 6:41 pm
I agree with Nicole. I’m torn between the two but having one store for professionals & one store for non-profesionals is a great idea!
Plus talk about customer service, TIS is the only place where you can receivethe best cust. srvc. People will go where they are treated w/respect. AAANND we are a very nice & clean store.
The public goes into our stores anyway, it’s not like we’re checking licences when they come in! I have had clients ask me to go buy products for them. Sometimes I do sometimes I don’t. Depends on the product.
July 25th, 2008 at 6:54 am
How did strongsville work out?
July 25th, 2008 at 10:28 am
I am also torn by this. We would love to generate more business but we do not want to lose the business we currently have. Anonymous says it best above, we don’t want the public paying the same price for products that are suppose to be sold “Only to Professionals”.
July 25th, 2008 at 10:33 am
It didn’t work out, but I don’t think it was in a good location, had a good staff nor enough backing. It was a new concept and had professional and public type products. Look at Trade Secret. I would think a non-professional store could work.
July 25th, 2008 at 11:00 am
Open a non-professional retail store here in MI. Put one in Patridge Creek! I’ll manage it!
July 25th, 2008 at 10:28 pm
I feel if that happened I would be either A, be out of a job or B my sales would be cut by more than half and we would loose quite a few salons that have been loyal to us for many years. I personal feel we are called “professionals” for a reason and we need to keep the integrity of our industry at a high standard. In order to survive we need to be the leader in the industry, not follow trends.
July 26th, 2008 at 8:34 am
Seperate stores is the answer!
And not advertising that is a part of TNG. Is that shady?
I would run one for you!
July 26th, 2008 at 10:30 am
this is a great idea if all you care about is making money!
sound like another company we know?
July 27th, 2008 at 2:39 pm
Great questions beg great comments and I surely have read some here.
As an FYI, the professional products such as hair color would not be available to the public nor would they have access to the products.
So let me put another spin on the question because you are all correct in the fact that we are professional and are in business for the salon. And we also know that most salons cannot compete in retail for many reasons.
Here is spin: When the consumer comes into the store, they are asked which salon they frequent. If they frequent a TIS salon, then their customer info is entered in the system with the salon as the salesperson. The salon then receives a commission on all purchases the consumer makes at the store which is credited back to the salon monthly.
This way, salons would actually recommend their clients to visit our stores to buy items they don’t retail and they don’t have to worry about inventory hassles and competition from places like Ulta and Trade Secret.
What are your thoughts on this idea?
July 28th, 2008 at 9:02 am
That is a great idea! Very innovative!
July 28th, 2008 at 9:02 am
That is a great spin. I could see this working but I would still have different stores for the public and for professionals. Working here in the store I have come accross many stylist that have questions about products/color and you woldn’t want the public to hear everything.
July 28th, 2008 at 9:21 am
Gosh Larry this is a tought one. I am on the fence on both sides. I understand the idea and protentialy the success. It would just really have to be spelled out to our clients and the difficult part is to really know what salons sell what items, blow dryers, brushes ect. If there was a way to include them to receive the benefit of their client going there then maybe they would be open to it, they are dying for any type of income. I just think it is a fine line and like the other TISE reps said, our (tise) depends on the independent salon and if it would harm I don’t know.
July 28th, 2008 at 12:59 pm
If you can only rid yourselves of conceptual thought, you will have accomplished everything.
July 30th, 2008 at 9:14 am
I think this might be a question to put out there to our customers, I think it is a good idea, a lot of salons do not do retail nor have the finances to stock a lot of different items in their salon. This would give them an opportunity to increase their retail dollars. As for retail customers seeing the stylist cost on items, we would have to put the whole sale price in code and just show the retail prices, so that would not be a big deal with the stylist.
July 30th, 2008 at 3:34 pm
I think this would be a horrible idea. What salon owner doesn’t retail?
I am a salon owner, I educate my staff and my clients about all of the products they need. I am my clients “one stop shop” so-to-speak. When I tell my clients what products they need to recreate the “look” I just gave them, I am putting the products in their hands to take home today!!! Why on earth would I do all this educating and then tell them, “you can go to TIS and purchase everything you need, wait while I give you directions…”Why am I telling you to go there?!? Well, my supplier wants you to go there so my profits can go right down the drain.” The supplier wants me to educate you, go to classes to educate myself and my staff, and then send you to them to shop. Oh, and while you are there, buy some other stuff and then the next time you come in to see me you can tell me how awful the stuff you bought was, and what am I going to do for you about it?
I feel that this whole idea is wrong, wrong, wrong!!!! Larry, what are you thinking??? I am quite certain that you mean to carry only retail items for clients. Not color and perms.
Yes, I have a few clients that have “friends” that get them products at wholesale cost, even taking them into the store, which I feel is sooo wrong for so many reasons. do I like it? NO! I don’t. What you’re saying, Larry, is let all the clients everywhere go to your stores to shop to their hearts content.
I feel I have already been screwed by Matrix, all the while being The Industry Source’s biggest supporter. if TIS does do this, I can’t imagine the chaos this would create. Enough is enough!!! Keep professional the way it should be…PROFESSIONAL!
July 31st, 2008 at 9:01 am
Robin-love your passion when it comes to the subject. And yes, it would only be retail products. I bet your percent retail to services is above the industry average of 6% so good for you.
This blog will talk about a lot of ideas and one never knows when the next “pet rock” one shows up. For now, have no worries!
July 31st, 2008 at 9:57 am
No No No, I think this would communize our integrity. Salons have enough compeition with out having to compete with someone that is suppose to help them grow their business.
Jim Luper
December 9th, 2008 at 5:48 am
Привет
Если уж плыть по течению жизни, то вольным стилем.
увидимся
December 9th, 2008 at 10:12 am
Здрасте
Боги всемогущи, но черти значительно расторопнее
прощайте
December 16th, 2008 at 10:27 am
Почему у вашего ресурса такой маленький тиц?
December 16th, 2008 at 3:11 pm
> Не все тут так славно, как пишут многие!
Мой ответ: Звезды благоволят не только удачным, но и избранным. Вы просто не помазанник высших сил.
December 17th, 2008 at 12:28 am
У вас рідкісний сайт, таких в Інтернеті дуже мало.
December 17th, 2008 at 1:40 pm
Если не секрет, дорого обошлось создание блога? Тоже хочется попробовать вести своё что-нибудь.
January 13th, 2009 at 5:55 am
Хороший ресурс)) Темы интересные и дизайн красивый)
January 20th, 2009 at 11:09 am
Spasibo za vash trud!
March 9th, 2009 at 1:17 am
Прикольно! Нет ну правда, просто слов нет!