Organic Color Systems Retailing by the Numbers
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Transcript of Organic Color Systems Retailing by the Numbers
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Recommend for Rewards
A brief analysis of how to improve your salon success with OCS
1www.OrganicSalonSystems.com (888) 213-4744
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IT’S TIME TO WAKE UP AND SMELL THE ROSES!
better hair, better result, better you
Niche Service - Niche ProductA Recipe For Success
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What are our top performing salonsall over the world doing differently?
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Three Indisputable Facts1. Salons that carry out the Wet Stretch Test on ALL
their OCS color clients perform better as they are offering a niche service when compared to the salons around them.
2. Salons that recommend OCS Care products to their OCS color clients have better client retention because they are offering them a niche service as well as using niche products.
3. Salons that carry out the above two services enjoy substantially higher profits.
better hair, better result, better you
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Let’s have a look at the figures...On average a salon should color at least three heads of
hair with every bottle of OCS color.
better hair, better result, better you
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Working on this average, how much
does it cost to do one color?
First, let’s work out the price/ml cost of each product required to do one color...
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$16.95 150ml $0.11 per/ml
$8.95 900ml $0.01 per/ml
$23.95 1000ml $0.02 per/ml
$25.95 1000ml $0.03 per/ml
$25.95 500ml $0.05 per/ml
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One colour costs you...
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PRODUCT QUANTITY COST/ML TOTAL COST
1st Shampoo 5ml $0.02 $0.10
2nd Shampoo 5ml $0.02 $0.10
Reconstructor 20ml $0.05 $1.00
Colour 50ml $0.11 $5.50
Developer 50ml $0.01 $0.50
Shampoo 5ml $0.02 $0.10
Conditioner 10ml $0.03 $0.30
TOTAL COST $7.60
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If you charge $55 for a colour...Your Gross Profit is $47.40 per colour
(excluding salon running costs).
Which means from one bottle of colour (working on our average of three colours per bottle) you’re
clearing...
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$47.40 $47.40 $47.40 $142.20
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Fact Checkpoint• You CAN colour at least three heads of hair
with one bottle of OCS colour.• You WILL make a profit of $142.30 (if you
charge at least $55 for a colour service).• You do not have to do anything different
from the salons around you to achieve this.• But you CAN make more!!!
HOW?better hair, better result, better you
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Wet Stretch TestAdvise
Recommendbetter hair, better result, better you
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Let’s see how much more profit we make when we recommend a
Shampoo, Reconstructor & Conditioner...
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PRODUCT YOU PAY SUGG SALON PRICE PROFIT
Shampoo $8.95 $18 $9.05
Reconstructor $12.95 $26 $13.05
Conditioner $10.95 $22 $11.05
Total $32.85 $66 $33.15
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$47.40 $47.40 $47.40 $142.20
$33.15 $33.15$175.35
If just ONE colour client buys...
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23%You have just increased your gross profit by 23%
no extra time, same clientele
better hair, better result, better you
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better hair, better result, better you
$47.40 $47.40 $47.40 $142.20
$33.15 $66.30$208.50
If just TWO colour client buys...
$33.15
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47%You have just increased your gross profit by 47%
no extra time, same clientele
better hair, better result, better you
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better hair, better result, better you
$47.40 $47.40 $47.40 $142.20
$33.15 $99.45$241.65
If just THREE colour client buys...
$33.15 $33.15
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70%You have just increased your gross profit by 70%
no extra time, same clientele
better hair, better result, better you
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Now add in a styling product or two and you’re really in
business!!
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Styling BreakdownPRODUCT YOU PAY Sugg. Salon Price PROFIT
Volume Mousse $11.95 $24 $12.05Glaze $11.95 $24 $12.05
Spray Gel $14.95 $30 $15.05Hairspray $13.95 $28 $14.05
Spray Gloss $13.95 $28 $14.05Gloss Serum $13.95 $28 $14.05
Finale Hairspray $12.95 $26 $13.05Thermal 2 Twenty $13.95 $28 $14.05
Crème $14.95 $30 $15.05Gel $14.95 $30 $15.05
Putty $17.95 $36 $18.05Wax $14.95 $30 $15.05
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Styling Breakdown
INCREASE IN GROSS PROFIT
INCREASE IN GROSS PROFIT
INCREASE IN GROSS PROFIT
THREE CARE PRODUCTS
ONE STYLING PRODUCT
TOTAL
ONE COLOUR CLIENT 22% 10% 32%TWO COLOUR CLIENTS 45% 20% 65%
THREE COLOUR CLIENTS 67% 30% 107%
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• The key to increasing our business is...
Fact Checkpoint
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It is not unrealistic to expect that a client will take home at least one
product each time they visit our salon.
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So why isn’t it happening?
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• Because most of us hate being seen as “selling” products to our clients.
• We often see “selling” as persuading our clients to buy something they don’t really want.
It’s time re-think, re-balance, and re-
calibrate...
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‘Selling’ is actually ‘satisfying a client’s need’.
As professionals, it should be part of the service we offer our
clients.
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The Wet Stretch Test establishes our client’s need
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The recommendation of product satisfies our client’s need.
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This isn’t selling
IT’S OUR PROFESSIONAL DUTY!!
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We don’t want our client’s to
There is a difference...
our products
We want them toour products
USEbuy
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Clients shouldn’t be choosing which product to buy based on:
• display • choice of brands • packaging and smell
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This relies on your client:
• being attracted to the product• taking the product off the shelf
• purchasing the product
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This is also the main strength of...
Supermarkets Pharmacies Large Retail Outlets
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What is our biggest strength?
The ability to analyse our client’s hair and recommend the correct products for them to use at home.
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We need to stop trying to take on retail outlets at their strongest point
and work to our strengthswhich also happens to be their
biggest weakness
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The vast majority of salon clients do not believe that the products sold in the salon are any better or different from those offered by retail outlets.
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Did you know?...
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It is our job, as hair professionals, to educate our clients.
Your clients will thank you for it.
Your business will thank you for it.
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better hair, better result, better you
Salons all over the world have embraced the OCS Concept for a
variety of good reasons
But a key feature of OCS is that it offers salons a...
better for my health
better for my client’s
health
better for the
environment
no smelly fumes
no damage to
the hair
superior results
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An undeniable fact in the current economic climate is that the businesses that are growing impressively have a point of difference, while the businesses that are in trouble haven’t changed much over the past 10 years.
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Point of difference
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Point of difference
Many businesses are getting caught up in a price war because they lack a point of difference, which is why they are in trouble.
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Point of differenceWe only have to look at the number of hair product companies that are reinventing the wheel or going down the non-ammonia route to see the proof in this.
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Point of difference
OCS IS A SYSTEM!
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Point of difference
with products that are formulated to work with and compliment the colour
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No other products on the market can make
this claim!!!
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Fact Checkpoint• We don’t want our clients to buy our products, we
want them to USE them.• We shouldn’t be trying to take on retail stores at
their strongest point.• We need to work to our strengths and recommend,
recommend, recommend.• The combination of a niche product and a niche
service equals a flourishing business that attracts loyal clients.
better hair, better result, better you
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As hairdressers, we are creative and
artistic.
But it is important to remember that we
should also be thriving business units.
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Our clients should never be leaving the salon without:
• Education• The right products for their hair
better hair, better result, better you
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better hair, better result, better you
It really is time to
wake up and smell the roses
dramatically increase your income
Attract new stylists - attract new clients
build loyalty with your existing clients
stand out from the crowd – offer service and products no other salon around you is offering