Salon Strategies - Part 2

Welcome to part two!

Recently I've begun working with my stylist, J, to sell jewelry in her brand new salon. In the last post I wrote about the more creative side of a venture like this; packaging, branding, whether to create an exclusive line or not and understanding the clientele of the business you want to work with. This time I'm going to cover the business end -

• Paperwork
• Pricing
• Inventory
• Your presence and online sales

Papers, business papers

Even if you've known each other for ages, be sure to get a wholesale or a consignment agreement in place before you place your products in the space. It should cover things like who is responsible for shipping inventory to them, what to do when things don’t sell, how you’ll be compensated for theft or breakage and of course, how much money each of you will get from each sale. Oh and sales! Can the retailer put your items on sale at a discount? If so how much, for how long, and who gives up the revenue? And how often do you get paid...that’s important, too.

Be sure to print two copies so you each have one when you sign them.

Pricing

I’m used to selling to customers all by my onesies. Now I’m going to be using J’s real estate and I need to pay her for that privilege. Trying to balance costs and also pay myself is tricky. As is not going broke. I’ve matched my materials and techniques for the price target I think will work best for this location. I think that’s very important. If you have a high end boutique that regularly sells $100 t-shirts, design your line for that type of customer and price it accordingly.

Inventory

In my case, I’m starting small. I've created 16 items - all bracelets and earrings that fit a really specific style. For now I’m using some less expensive metal components - pewter, brass & copper, but if things take off and the audience is right, sterling silver will probably come into things too. I’m using a spreadsheet online that we can both access to keep track of everything. It can't hurt to print this as well.

And while we're talking about inventory - J suggested I take some time to educate her on what the pieces are made of and my process so she can talk to her clients when I'm not there. VERY good idea. She is my rep now and I want her to be knowledgeable and able to sell.

So she doesn't have to do too much work, I've written the basics on the hang tags so customers can read about the item while they try it on.

Coupons, signage and your other outlets

To begin with my display will blend into her decor and other than my hang tags, there isn't anything with my business or logo on it. As we go forward, that might change and if I approach other venues I might do that straight out of the gate. Of course I do have online stores and while I don't want to cut into her sales, I do want people to know that I have other items in other styles available. This is what is so important about creating something exclusive for retail - I don't want to become her competition - her line will be her line. So when they pick up a business card or a coupon, it won't be for something that will be in J's salon. I think that's the respectful and honest way to go into this.

Future ideas

I may design a logo and hang tag just for this line. Something to incorporate her business identity into the product. Also maybe some body jewelry (there is a tattoo parlor in the back) and hair accents. The better I understand the things she does for her clients and what they want, the better I can tailor my product to that.

If this has traction and success, I can use it to sell the story to other businesses in the area. Again, I'll need to do my homework and make sure I know all about that store and its customers and goals.

So today is when we meet and I bring my first batch of jewelry. Oh and she cuts my hair, too, lol.