How to sell salon products effectively is one of the biggest challenges facing beauty professionals today. With a client’s dreaded “I’ll get it cheaper at CVS” becoming all too common, salon owners need proven strategies to protect their retail sales.
The good news? The professional beauty retail market is booming. According to McKinsey, in-salon product sales are projected to surge from $4 billion to $6 billion by 2027 – and you can claim your share of this growing market.
Play the short…
…and watch the full episode 45 of Marketing 100 with salon marketing experts John Hallberg and Kayle Yanez as they break down how to win the product diversion battle and boost your retail sales…
Continue reading below for our step-by-step guide on protecting your clients from fake products while building a successful retail business in your salon.
🚀 Download our free Professional Product Authentication & Sales Toolkit to get a printable checklist of these strategies for your team.
The Value vs. Authority Balance
When selling salon products, you’re dealing with two key factors: value and authority. While big box stores and unauthorized retailers might win on price (value), they can’t match your professional expertise (authority). Understanding this dynamic is crucial for your retail strategy.
The Amazon Effect
Think about why Amazon is so successful: convenience and competitive pricing. They monitor competitors’ prices and adjust in real-time to maintain their edge. While you can’t match this scale, you can apply the principle by staying informed about local pricing and being ready to adapt your strategy.
Understanding Professional Product Sales
Product diversion is one of the biggest obstacles when selling salon products. It happens when professional haircare products end up in unauthorized retail locations like drugstores or grocery stores.
No salon professional brand is selling their stuff to Walmart. That’s not a thing. If it’s in that store, it’s redirected product, which means it’s probably old, expired, or fake.
These products often come from third parties who help distributors move product, eventually selling it to unauthorized retailers.
The impact of product diversion is significant. For example, in 2023, major brands like Olaplex found their products being sold at unauthorized retailers for up to $10 less than authorized prices (Retail Brew). This type of diversion particularly affects the beauty industry due to its wide price ranges and margins compared to other retail categories.
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Why Clients Should Buy Salon Products From You
When clients find professional products at lower prices in retail stores, it might seem like a win for their wallet. But as a hair professional, you need to help them understand the bigger picture.
These unauthorized products often come with significant risks that can jeopardize their investment in professional services. Creating an effective salon loyalty program can help ensure clients purchase products from you instead.
Understanding the Risks:
- They may be expired or improperly stored
- The formulation could be compromised or counterfeit
- Manufacturer barcodes are often removed (a clear sign of diversion)
- There’s no guarantee of authenticity or quality
Red Flags to Share with Clients:
- Check the bottle for removed manufacturer barcodes
- Look for the “guaranteed only when sold in professional salons” disclaimer
- Be wary of prices that seem too good to be true
- Notice any differences in packaging or product consistency
Selling Salon Products: The Authority Approach
While big box stores might win on price, you have professional expertise and product authority. Here’s how to use this advantage in your salon retail strategy:
Frame the Value Proposition
When selling professional haircare products, ask your clients: “Would you risk damaging your $300 color service with potentially expired or fake products?” This perspective helps clients understand that saving a few dollars isn’t worth compromising their investment in professional services.
Educate About Product Authentication
Show clients how to spot diverted products. Point out the authentication markers on your professional products and explain what missing barcodes or altered packaging might mean. This builds trust while highlighting the risks of purchasing from unauthorized retailers.
Competing with Authorized Retailers
When selling salon products against authorized retailers like Ulta or Sally Beauty, take this strategic approach:
- Stay informed about their pricing and sales cycles
- Consider offering price matching for authorized retailers
- Focus on the added value of purchasing from you—personalized recommendations and professional guidance
It’s important to understand that legitimate beauty retailers like Ulta and Sally’s operate under specific agreements with manufacturers. These agreements require them to maintain certain price points to avoid unfair competition with salons.
These stores will have more product and more ways to absorb costs, but they’re required to maintain certain price points to avoid unfair competition with salons. They can’t undercut you the way unauthorized retailers do.
Price Matching Strategy
Focus on matching authorized retailer prices to stay competitive:
- Monitor local Ulta and Sally’s sales cycles
- Keep a record of their regular pricing
- Offer price matching with authorized retailers
- Use phrases like: “We price match with Ulta, so we can take care of that for you right now.”
Professional Product Sales Strategy
Your retail success depends on a well-executed strategy that addresses both team training and product selection. Here’s how to build a comprehensive approach:
Team Training and Education
Make product knowledge a priority in your salon. Building a strong salon culture around retail sales starts with regular training sessions where your team learns about product diversion, authentication markers, and effective selling techniques. Role-play common client objections, especially around pricing, and practice responses that emphasize value over cost.
Pricing and Competition
Monitor and match prices with authorized retailers like Ulta and Sally Beauty. Keep detailed records of their regular pricing and sales cycles. When clients mention lower prices elsewhere, be ready to price match while explaining the authenticity guarantee they get from purchasing at your salon.
Product Selection and Brand Relationships
Build strong relationships with your brand representatives and maintain open communication about distribution concerns.
This is particularly important given that beauty products typically offer margins of 55-80%, compared to just 5-20% for services (McKinsey). With these significantly higher profit margins, a strong retail strategy can substantially impact your bottom line.
If you spot your brands in unauthorized locations, discuss this with your rep immediately. Don’t hesitate to explore alternative brands, especially niche ones, that offer better distribution control and exclusivity.
Authentication and Quality Control
Think of yourself as your clients’ ‘hair doctor.’ Just as they trust their medical doctor’s prescription recommendations, they should trust your product recommendations. Boost your salon retail sales by showing clients:
- Show clients the authentication markers on your products
- Explain how proper storage and handling affect product quality
- Share real examples of how diverted products have damaged clients’ hair
- Demonstrate the difference between authentic and compromised products when possible
Many brands are implementing authentication measures like QR codes on bottles for product tracing. However, industry experts note that relying on consumers to police authenticity isn’t the most effective solution (Retail Brew). That’s why your role as a professional in educating clients about authentication is crucial.
You’re not just selling products. You’re protecting your clients’ investment in their hair health and the professional services you provide.
Brand Monitoring
Stay vigilant about where your carried brands appear:
- Document unauthorized retailer sightings
- Report concerns to brand representatives
- Request current authorized retailer lists
- Evaluate brand partnerships quarterly
- Consider switching to more exclusive brands if diversion persists
The Bottom Line on Selling Salon Products
You’re not just selling products – you’re protecting your clients’ investment in their hair health. When you approach salon retail from this perspective, you transform what could be an awkward price conversation into an opportunity to demonstrate your expertise and commitment to your clients’ best interests.
Your authority as a professional and your ability to guarantee product authenticity are powerful advantages. Use them to build trust, educate your clients, and grow your professional product sales while ensuring your clients get the genuine, quality products they deserve.
Ready to Protect Your Retail Sales?
🚀 Download our Professional Product Authentication & Sales Guide and transform how your team handles product sales. This comprehensive resource includes:
- Ready-to-use authentication checklists
- Proven client conversation scripts
- Team training scenarios
- Progress tracking sheets
- Implementation timeline
Perfect for:
- Salon owners
- Stylists
- Front desk staff
- New team members
➡️ Click here to download your free guide and start protecting your retail business today.
P.S. For even more proven salon marketing tips, don’t forget to check out the rest of our Marketing 100 series.
