Product Companies... they can be viewed as many things. Words like benevolent, friends, partners, educators, motivators, mentors etc etc come to mind. Are product companies your Knight in Shining Armour? Or are they Wolves in Sheeps Clothing?

Well as always the truth really relies on you - the salon owner/manager - and you ability to form a mutually advantageous relationship.

So let's explore 'Product Companies' and how you can make that crucial relationship work for your salon.

The choices of hair product companies out there are so many and varied that it's intimidating. Just flicking through the pages of our industry magazines you're hit by ad's for L'Oreal, Schwarkopft, Redken, Wella, Goldwell, Keune, SO, Keratase, American Crew, Revlon, Eco and on and on and on (sorry i'm too lazy to list them all - you know who they are).

Who would know where to start?
Well, take a breath - the first step is to go back o your original business plan. Who are your clients? What is your demographic? Where is your salon located?

And finally, what would these people want to buy?

Notice I didn't say "What would you like to buy?" it's a different question altogether. You actually have to stock what your desired clients 'want' as without them buying, you are out of business. So for now put your preferences aside.

That should of cut the list down by quite a bit. Next step - do some research.
Make a few phone calls to other hairdresser's you know. who do they use? Would they recommend that company to you?
Search the internet. Who's got good info out there? Remember that if you can Google a product, then so can your customer.

Step 2 is to make some contact with the companies still on your list.
Try to be professional and polite as you request product information to be sent out to you.
Crucial at this point is to judge the contact person for that company. Are they interested in your business? Polite? Professional? Helpful? Patient?
Take note of how long it takes for the info pack to arrive. Was delivery prompt? As promised? Well presented?

Buy now you've narrowed the list right down. It's time for face-to-face meetings.

Your first face to face is really important.
This is a relationship that can be crucial to your business success. As the Rep's or better yet State Sales Managers start rolling in, you're going to have to put on your business face. Not your super obliging hairdressing face.
Product companies and their sales team's are in the business of making their budgets.
Guess what? So are you!

(I know, i know - you're a hairdresser. Why bother with the messy side of dollars?)
Unfortunately there are some sales people out there that will lay on the charm, gloss over the facts, take your order, secure the whole lot against your family home (yes, that's what a personal guarantee is) and that's the last you'll see of them.

I like to refer to that as 'dumb business' - let's not go there.

Back to smart business - questions to ask are; supply chain delivery times (how long it takes to deliver an order), educational supports (technicians, courses etc), promotional materials, marketing materials, frequency of Rep visits, trading terms, required guarantees and payment options.
I's a lot of information to take on board, so ask lots of questions and don't sign anything yet.

That's right don't sign anything. The Rep's (naturally) are trained to close the sale. So they may well push for that. It's important to not cave in and to explain that you'll be reading over everything and comparing their products to others. Regardless of the pressure - don't sign anything.
If you find that the sales person is getting really pushy, explain calmly that ant further pressure will close the deal - against them.

At the conclusion of your Rep interviews it's reading time.

Now you can add your new product information into your business plan. Does it work for you?
Hopefully the answer is yes and you can live happily ever after with your product line making $$'s for you.
If the answer is No, there should be a reasonable explanation as to why not. Is the Business plan flawed? Are your financial forecasts off? Is your market niche incorrect?
Find the answers and correct accordingly.

Now that your company or companies are on board. it's always a good idea to sit down and do some advanced planning. In my salon we do this every January followed by detailed planning for every quarter. Followed by very detailed planning for every month. Followed by... well you get the picture.

In the next installment we'll deal with Planning. Topics will include marketing plans, education planning, buying and selling to a plan.

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Tags: Sales, Small Business