The Power of Merchandising in your Business

I am sitting at home, looking through the Sunday morning fliers at all the sales and special offers that retailers are offering as part of their special weekend offerings…especially now that the 4th of July (or Canada Day, for my Canadian friends) is approaching.  Everyone is having a special incentive to purchase products…whether it is a sale or a special incentive with purchase.  The use of incentives to drive business is what is called Merchandising!

As we spend most of our days at work continually analyzing our business dynamics, it has becoming increasingly clear that we, as an organization, rely too heavily on discounting the price of the products to move them rather than creating a special incentive to purchase.  In doing that, you may move some products initially, but in the long run, you degrade the price value of your product.  This is NOT a healthy way of selling products for long-term success.  Have you ever noticed that Department stores NEVER, and I mean NEVER put their cosmetics on sale?  They use other forms of marketing so they don’t discount the value of the brand…Gift with Purchase or Purchase with Purchase are the most common ways of marketing to cosmetic consumers.  Buy one, get one for a discount or free is also a way that cosmetic companies market to their consumers.  If you haven’t gone into a department store in a while, you should consider making that a fun homework assignment.  Venture out to your local department store and walk through the cosmetics department to get some great ideas about how to create special promotions to help move your inventory.

Our job, as a Marketing team, is not to market to you as a BUYER, our job is to market to you as a SELLER…you are the storefront, and the SPA is your sales event in which you sell your products.  Our job is to provide you with the incentive items and the training to put together incentives to offer your clients in order to help move your business.  The only time that my team will market directly to your clients, who are the Buyers, is through Client Connection and the Client E-Newsletter…but unless you sign them up, we have no way of marketing to them for your benefit…this is why our Client Marketing tools can take so much of the pressure off of your shoulders as the SELLER.  Be sure to take advantage of our client e-newsletter and Client Connection mailings…you will be amazed at what it can do for your business.

So, the purpose of this blog is what I hope to be a “crash course” in Merchandising that will offer some insight into various ways that you can incent the sale of your products without continually discounting the price to your clients.  Remember, once you start your clients on a discounting habit, it is a harder habit than heroin to break.

Remember, when we market to you, the Consultant, it is a great opportunity for you to stock up on the items that are on sale so you can turn around and sell to your clients.  These are the best times to stock your inventory with the items that you need to keep your business moving.   Buying at a discount allows you to maximize your profits when you sell them at full retail price…OR it allows you to stock up and create a limited time “Sales Event” for your clients.  When we have a sale on older items and mark them down to very low prices (like we did for the Memorial Day Sale) or when we put items on Beauty Bargains, it is not to appeal to YOU as a buyer, it is for you to purchase so you can use them as Gift with Purchase items to incent the sales.  We sell items to you in those occasions so you can add value to your product sets.  These are the best opportunities to load up on really great product at a really great price.  Let me give you an example.  If I were a Consultant during the Memorial Day Weekend Sale, I would have purchased dozens of the City Garden Color Palettes from last Spring.  They are SO adorable and a HUGE value at the price that they were marked down to during Memorial Day.  I would have bought up some of the clear skincare set bags and put together an incentive for my clients during the month of June…”Receive a FREE color palette consisting of 3 luxurious eyeshadows and 2 lip colors and cosmetic bag with every purchase of skin care during the month of June…a $30 value”.  Here is another example, “Receive a FREE makeup brush set with every purchase of BC Color shadow, blush and lip color during the month of July”  These types of ordering opportunities not only creates urgency with your clients, but it allows you to sell an entire set of products with a very small investment.  Use products that we offer such as cosmetic bags, skin care bags, makeup brushes, literature pieces from forms on file, etc. to add to your sets to create more value to your clients. 

Here are some very typical ways to Merchandise your business to achieve maximum sales:

• Gift w/ purchase
• Everyone loves the old GWP…gift with purchase.  This is something that is done very frequently at department stores.  I like to use the GWP concept to help incent the purchase of a full price item.  For instance, “For every skin care set purchased at full price, receive a FREE GWP worth $X”.  Or “For every purchase of $X, receive a FREE GWP valued at $X”.  This is a great way to move any older inventory that you may have on your shelves.  Use the older items as a gift with purchase when someone buys one of your better selling items at full price.
• BOGO-buy one get one
• Who doesn’t love a BOGO sale?  There are some really great products on the Sale list.  Mineral Foundation is a great example of an item that has a loyal consumer base.  These types of consumable products, in addition to lip colors, Lip Colors, Shadows, Blush have great appeal.  These are the types of products where you can do a BOGO offer most effectively.  Another way to do this would be a “Buy a product and get one of equal or less value for FREE”.  Either way, women love a deal almost as much as they love our products.
• Client Appreciation Sale
• This is great for those who have an established client base.  You can create an order form of products that you have on sale and send to your clients…or better yet, have a “Preferred Client Open House”.  Send out invitations and have a Summer Savings Event.   This is the type of event that you should reserve as an annual event.  Take advantage of the low prices that we offer and pass them along to your preferred clients the following month.  For instance, Regeneration was on sale in the month of June.  That would have been a great opportunity to stock up on these items and have a Summer Repair Sale to your clients during the month of July.

These are just a few ideas of ways that you can maximize your sales and your profits through Merchandising.  For other great tips, check out other retail channels that sell cosmetics and look for fun ways to incent your sales.  You don’t have to wait for us to give you the items to use in your offers.  I was in the dollar store the other day and saw an adorable set of acrylic margarita glasses for a dollar.  That would be an amazing gift with purchase for the purchase of set of BC’s Margarita products during the month of July.  In fact, I bought a dozen of them to use as party gifts for various summer parties that I will be attending!  Think like a retailer.  Think about the things that encourage you to buy as a customer and pass them along to your clients in your retail offerings.  Merchandising is FUN and a great way to move inventory.  Remember, you are in business to sell products and make money…not to give away your profits.  Spending a few dollars to create unique, fun and appealing merchandising offers is MUCH less expensive than selling at a discount plus you can maintain your brand price integrity in the process.  Have fun with it! 
I would love to hear some of your ideas of ways that you merchandise your products to sell to clients.  Please post your ideas in the “comments” section below to pass along some best practices that your fellow Consultants can use to strengthen their business this summer.
I hope you all have a great week.  I will not post a blog on Friday, but will be back next Monday to share all the great news about July’s new products and great sales opportunities.
Have a very happy and very safe Holiday weekend!!

Comments

[Gary Jones]

Elizabeth,

When you are selling to new clients and building a client base, you don't need to implement Marketing techniques the same way that you do to an established client base. Getting the client is easy and doesnt require any special incentives. In fact, i would recommend always selling your key products at full price to a first time buyer. It is when you are encouraging sales from an existing client that you might want to use the GWP/PWP options or the BOGO offers. These are the kinds of things that encourage faithful customers to buy more than they might have originally.

It doesn't need to be complicated. Just remember, what appeal to you as a customer? now, apply some of those tactics to your own marketing of the products. Here is an example...yesterday i went to Arby's for lunch. I got a coupon that said come back tomorrow and get a free sandwich. Guess what? I went to Arby's today for lunch (and i dont really even like Arby's). Those are the kinds of things that keep your clients interested in what you have to offer.

If you dont feel comfortable using these techniques as a new Consultant, then you shouldnt. Keep it simple. Offer a skincare mini set with the purchase of the IFL set or with the purchase of a full size set of skin care. Use the brush set as a GWP when someone buys a full set of color products. Those kinds of things keep it fun and are very easy.

[Michelle Archer]

Gary you are so right! We need marketing tips! It is the gift with purchase that keeps them coming back! Look at Clinique "Bonus Buys". It creates a fury! I do a frequent shopper punch card as well!

[Elizabeth LaPrade]

I am just starting out and so I am trying to take in all of these ideas, but I am concerned that this will make other people more apprenhensive to sign up as a consultant when confusing marketing offers make someone feel like they couldn't keep up. How do I know how to keep the balance?

[Doris Elksnis]

I noticed in Department stores they were offering cute bags with their purchase with a purchase program. And so I just recently started implementing the purchase with a purchase. And one of the key things is the packaging! I got these really cute handbags at the dollar store and put inside it product that was discontinued and said that you could get this darling little bag, with the product for $19.99 when you purchase $50 or more. The ladies went crazy over those bags! One client bought it just so she could give the bag to her grand daughter! It has increased my sales at my spas. Love the marketing ideas.
Thanks again for all you do!

[Bethany Harrison]

These are ideas I have shared before, but just in case anyone missed them: I offer 2 different baskets to reward my clients. The first is a Bargain Basket, very similar to our very own Bargain Bin that consultants can gain access to. For every $50 that each client spends ( before tax and shipping of course) they can purchase 1 item from the bargain basket. I use this currently to move discontinued items, like the prior formulation of Cell Block C PM or seasonal items that have been discontinued like the Snowflake line. This way they are rewarded for spending $50 or more, and if they are close to a second or third item, they will often add something because they get SO excited about that basket! I also have a smaller basket with 1 oz hand cremes, spa socks, spa cds, tealights, and lip balm sticks and tubs. Since these are some of my favorite items and don't cost much (esp if you are smart and get them on SALE!) it is a small investment. I allow my clients to choose one of these items for free when they spend $75 or more. So, again, a lot of clients will push themselves to that $75 mark to get the gift because everyone LOVES those items!

Like Crystal mentioned, I also give samples to my reorder clients, and let them know that it is a special gift because they are special clients to me. I will sometimes put a handwritten thank you note in with my orders that says how much I appreciate their business and as a thank you they will receive 10% off their next purchase before a certain date or a free hand creme with their next order of $50 or more before a certain date. Hope that gives someone some ideas. :)

[Crystal H.]

De ja vu! I've been talking with my Director about this very thing in the last couple of days. We've been discussing these ways of increasing sales:

Buy the IFL Set recieve travel size skin care set FREE.(We want them to use it too!)

OR Buy the IFL Set receive a set of Rejuvenating Eye Patches (1 pair from the box of 6)

Buy the 5-min Mineral Makeup Set receive Natural Color Primer (or concealer could be used) FREE. FYI- I had a gal tell me that she used the Natural Color Primer on her eyelids and her eye makeup stayed on and didn't crease.

Buy your Repair and Prevention Set receive 50% off a TFF product.

I try to give my loyal clients a sample of something every time they order with me. They like that and it gives me a change to sell them on something else.

I also like the frequent buyer program. If they love TFF and they have purchased 4 they get one free or at a reduced price. Punch cards can even be used for this idea.

We all like to offer a future savings to clients who purchase a gift set for someone. We sell men gift sets for their sweethearts on Valentine's Day and offer them a savings on a future gift set purchase.

My recruiter uses this idea: Every person she recruits receives a Therma del Sol Detoxifying Bath Soak (they can use at their Spas) and every person who refers her to a person who joins receives one.

I've heard of recruiters giving sets of Spa socks to ladies who join their team and are doing the business.

Those are just a few I can think of right now.

Enjoy your weekend everyone!