Levels of retail The levels of cosmetic retail sales can be analyzed along the lines of promotion, quality, percentages of ingredients, and
recommend products. The potential for damage to a client is high here if the products are the same as those sold in salons. Formulation “tweaking” is used by many companies that choose to sell through retail beauty supply stores. With this technique, the label and ingredients do not have to change in a product, but the amount of water or carrier, the first ingredient on the label ingredient list, may be increased. The product formulation is then diluted enough to prevent skin responses to ingredients such as AHAs and BHAs, but legally the product label can be the same. The pH (acidity or alkalinity) of the product can also be adjusted, as it is not listed on the label. pH can be raised enough to prevent possible irritation and to prevent potential lawsuits, and the product can still be sold to the public without changing the boxes and labels. Other changes in formulation of the OTC products of these lines can be made to attenuate the product and prevent problems, without changing the products noticeably. Products from some of these companies may not be the same as what were formerly professional-only products. Other companies simply have a different store line to protect the company’s professional image while still having an OTC line that does not need professional recommendations. Spa/skincare salons The skincare products in clinical skincare salons and spas are focused on changing and improving the skin of their clients. These products usually contain pharmaceutical- grade ingredients and professional levels of ingredients at the proper pH level for the desired results. The companies educate skincare professionals on their ingredients, how and why they perform, and what changes the client can expect. Little consumer advertising is purchased by these companies because they depend on the recommendations of trained professionals. They are called “professional product lines” because the people who sell their products, skincare professionals, are trained in skin- and client care. These lines can use higher levels of active ingredients, the ingredients can be pharmaceutical grade/high quality, and they will progressively produce changes in the clients’ skin and appearance. Skincare professionals take client health histories and are trained in precautions. They see their clients regularly and define their needs according to their goals and health. All this adds up to a great value for clients when comparing professional products to OTC products. The old cliché “You get what you pay for” is generally true in life, and is also true in beauty products. Knowing these truths about beauty products will give professionals the tools to explain these issues to their clients. Those who wish to achieve their goals will choose high-quality professional products that they can offer in their room and salon. services that are expansions of services the licensees already know can be very rewarding for both the salon and the professional. A survey can tell owners and managers what their clients are purchasing elsewhere, and asking clients what services not being offered they would like to have available to them in the salon can be very informative to an owner who wants to expand into a new service.
professional recommendations. Discount stores, grocery stores
Some cosmetic lines promote a great deal, and the cost must be absorbed in the product production and price. For the products to be within the price points of the clients of these stores, the quality/percentages of active ingredients might be low and the pH high. They have no professional recommendations. Multilevel marketing sales The cost of these products must be kept very low because of the multiple levels of sale, as well as the high cost of advertisements, incentives, and packaging. Every person along the sales line is paid a percentage, making this the most costly aspect of multilevel sales. These costs must be absorbed by the product price and heavily affect the quality and percentage of active ingredients in the products. The training provided to salespeople varies by line protocols and usually focuses on sales techniques. They are not permitted to perform certain hands-on techniques because they are not licensed. Department/online stores The product lines in these stores are highly advertised and can be expensive (many are more expensive than professional products). To justify their high prices, they often have wonderful ingredients—as defined by their research and development departments—beautiful packaging, and polished sales methods. But what about the active ingredients in their products? What would their results be on the skin in comparison with those from professional product lines? A controversial issue with skincare professionals can be if their professional line is selling online directly to their clients. This results in the line competing directly with the professionals and collecting their revenue. Many estheticians check before they choose a product line and reject ones that participate in this sales method. Retail cosmetic stores These stores carry nonprofessional OTC lines. They do not hire skincare professionals, so products are sold through features and benefits and not by skin typing based on trained skin analysis. This actually can lead to serious consequences if a salesperson doesn’t realize that a popular product for acne, for example, could damage a consumer with dry skin. These stores usually have highly aromatic products and can be very allergenic. Retail beauty supply stores These stores sell professional-grade products but do not usually hire skincare professionals for their sales force. They may have a chair in the back with a cosmetologist working a few hours a week, but they do not come to the front to One more thing . . . When researching a new service, consider the skills of the current professionals in the salon and that clients often prefer to receive all their services in the same familiar location from familiar professionals. The clients are ripe for internal marketing. For that reason, instead of looking for a new, investment- rich service that will require training and intense marketing, or even hiring a new professional, the internal marketing of
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Book Code: ENC0825
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