Selling Wholesale Beauty Supplies To Salons
Wholesale Beauty Supplies for Sale
Business Plan:
Beauty Salons can be broken into the following outline:
I. The Salon Industry
A. Barber Shops
B. Beauty Salons (focus on hair styling, retail on the side)
1. Leased Station Salons
a. where stylists rent their station and may retail in their own station b. They are typically the lowest volume retailers.
2. Commission Salons
a. Stylists are paid a commission salary for their services. They may or may not be paid commissions for retail products. Retail product bought by owner.)
b. They are typically the highest volume retailers in a salon format.
3. Chain Salons
a. where stylists are paid an hourly wage. They may or may not be paid commissions for retail products sold. (Retail products bought by owner.)
b. They are typically medium volume retailers.
C. Beauty Supply/Salon (focus on retail, hair styling on the side.)
a. commission or wage paid sales associates.
b. They are the highest volume retailers in the industry.
D. Nail Salons
a. Come in the same format as beauty salons.
b. Typically lower volume retailers than beauty salons.
E. Tanning Salons
a. Usually with hourly wage paid employees.
b. Good retailers of sunglasses, toe rings, and anklets.
F. Spas
a. Usually hourly wage paid employees
b. Strong retailers of higher end jewelry.
The Style of the Salons
I. Beauty Salons
A. Fashion Forward Salons
1. Typically in urban areas and college towns.
2. Target Customers are 18-45 years old women.
3. Average Hair cut $30.00 and up
4. Salons Products of choice: Bed Head, Aveda, and Sebastian
B. Family Salon
1. In small towns and suburban areas
2. Target Customers are families
3. Average Adult hair cut $15.00 and up
4. Salon Product of choice: Paul Mitchell and Matrix
C. Golden Oldie Salon
1. Small towns, Suburban areas, and Retirement Communities
2. Target Customers: 55 and older women who get shampoo sets.
3. Average Hair cut: $15.00 and up
4. Salon Product of Choice: Apple Pectin and Lamaur
Market Readiness:
We conducted a survey of 376 hairdressers at a recent Portland Hair Show. This survey showed the following:
91% of our clients still retail our merchandise78% will look at our new website
21% plan to visit our new showroom (this is low because the showroom is 3 hrs from Portland)
64% of people who had not ever met us will now be selling our merchandise
52% of our new clients did not know about or how to find fashion accessories to sell in their salons. 100% of hairdressers surveyed would be interested in ways of improving their salon profits.
Strategic Opportunities:
Since there are thousands of salons in the Western United States that do not know about or how to find fashion accessories to sell in their salon, and virtually all hairdressers are interested in how to increase profits in their salon, shows that there is huge market potential to increase our number of clients. Currently we attract new customers through trade shows, our website, and word of mouth, but we plan to start advertising in hairdressing trade magazines as well.
Competition:
Competition: Claires, Icings, and even Nordstrom. This is why we make sure to keep our prices low enough that our salons can retail our merchandise at prices competitive and many times lower than these retailers.
Main Competition:
Direct Competitors for us are fashion jewelry wholesalers that cater to salons. In the Western United States, our major competitor is Noble and Wulf. They have been wholesaling fashion jewelry out of Seattle for many years. They are the number one wholesaler of fashion jewelry and accessories to salons in the Pacific Northwest. Yet they do not focus specifically to salons. The majority of their business is to retail stores.
Another competition in the Western U.S. is Chars of Laguna. Char's sells high end Austrian Crystal jewelry to stores and Beauty Salons mainly in California, but also has a presence in the Northwest.
Advantages Over Competition:
- Beauty salons are our focus, were our competitors caters first and foremost to stores, and secondly to salons.
-Our staff is very experienced with a combined fifty-one years experience in the Beauty Salon Industry between our five employees.
-We carry the latest and most up to date trends.
-Racks and displays are provided for our clients.
- Educational services are provided to our clients about the latest trends, how to use our products in hair styling, and how to be a successful retailer.
-We are a multi-channel wholesaler offering trade shows, phone ordering, in-salon showings, an online catalog, and a Seattle Showroom.
Competition Comparison of Services:
The core of operations is our three-pronged system of service. To fully employ the system, we use multi-channels of service to serve our clients. Trade shows, in-salon visits, a website, a Seattle Showroom, and phone ordering make up the channels of operations. In order to service these channels, a warehouse in Eastern Washington State, where land is inexpensive.
