RETAIL IN THE BARBERSHOP

The missing ingredient to your business success.

Posted April 24th, 2008 by Will Williams

Can you name a barber or a shop that doesn't want to make more money? I didn't think so. One way to accomplish this is as natural as asking "would you like fries with that?" at your local Micky D's. Just tell your clients, "I have a great product to recommend to you." Maybe you already recommend products to your clients. If you see they have razor bumps, you might recommend Bump Patrol or Organic Root Stimulator. If their hair is hard to manage, maybe you mention Sportin' Waves or Murray's. And you should. It's your job. However, if you're imparting this knowledge to your customers, why aren't you gaining the maximum benefit from that guy in the chair who is listening to your advice? Why aren't you going one step further and selling him the product?

Let's see. There is probably a list of excuses: I don't want the hassle. It's not worth it. It's easier to send them to the local Wal-Mart. I'm not a good salesman. On and on. But, in the end, you're losing income, your shop is losing revenue and your customer has to go somewhere else to buy something that he could buy right then and there.

I'm here, along with a few barbers, to tell you that setting up a retail shelf or store in your shop isn't that hard to do. You can start small, to test the waters, and grow it at your own pace and your own comfort level. So how do you get started?

1) Acknowledge that you have knowledge to offer:

The strongest words a barber can use with a client is "I use" or "I recommend." So why don't barbers use those words more often? According to Maura Scali-Sheahan, who is a Master Barber, author, educator, and consultant, barbers often don't realize just how influential they can be and how much customers want their advice. "Barbers are professionally trained in the area of grooming. Their knowledge is valuable, especially to the everyday guy who isn't aware which products he needs and which ones will most likely work for him. Recommending products to your customer is part of the job."

Scali-Sheahan also recommends that you become familiar with a lot of different products. "Try them on yourself. Recommend those you like and trust but realize that something that works on one customer may not work on another."

2) Realize the potential:

Retail will never be the majority of your business, but it can add 10% or more to your bottom line. According to Tom O'Brien, regional manager of Floyd's Barbershops, with 16 corporate stores and several franchisees on the west coast and in Denver, "It's a big part of the business. People see professionals to get their hair cut and ask them what to use." Floyd's carries about 80 SKUs and has a receptionist who takes care of the displays. A POS system tracks inventory. O'Brien adds, "Everyone who comes into your chair is buying hair-care products somewhere. You might as well sell to them. It's a great way to build a relationship with the customer.

John Ewell, owner of the Arena Barber Shop in Atlanta, Georgia, explains, "Right now our retail sales make up about ten percent of our sales, but I can see it going up to forty-five percent to fifty percent." He adds, "Customers do want product consulting. Barbers are seen as trusted advisors. And now some customers just come in to buy product." Now that's customer loyalty.

3) Start with a shelf and grow from there:

Shawn Warfield, who owns Apogee Barbershop in Lithonia, Georgia, has a few shelves behind the cash register with a dozen different products on them. He doesn't push the products, but the shelves are placed right behind the cash register, so when paying, customers can't help but see what's available. "Some days I sell five to six products in a morning, sometimes more." That's what Shawn is comfortable with right now, although he acknowledges that he could probably grow his retail section and be more aggressive about selling products.

On the other side of the spectrum is John Ewell, who has a full boutique in his shop. "We wanted a full, total male grooming experience. Once I got products in, we had to train our barbers about the importance of consulting with their customers. Then we had to educate our customers about our retail products.

How to pick products? John sat everyone down and asked his barbers what they used. They voted for the top three products and tested them in the shop for four to six weeks. "Every product we sell, we use."

Make sure to check with your state barber board to see if you need an additional license to sell product in your shop.

4) Make it part of the routine:

Get in the habit of asking "would you like fries with that?" Try to put at least some of your products by the cash register so when customers come up to pay, it's easy to reference the products and ask if they need anything today. If they have a problem like razor bumps, hard-to-manage hair or dandruff and you have a solution, you're doing them a great disservice if you don't offer a product that solves one of their problems. If 75 customers come through your shop in a day, and you ask that question to every one of them, most likely 7 to 10 customers will say, "Yeah, I do."

Dr. French, an instructor who manages a barber shop, has even more success. "If I say something to a client, nine times out of ten, they buy it."

Now how much would that add to your bottom line?

Stay smooth,

Will Williams