Organic Color Systems Retailing by the Numbers

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A brief analysis of how to improve your salon success with OCS

1www.OrganicSalonSystems.com (888) 213-4744

IT’S TIME TO WAKE UP AND SMELL THE ROSES!

better hair, better result, better you

Niche Service - Niche ProductA Recipe For Success

What are our top performing salonsall over the world doing differently?


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.


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.


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...



$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

One colour costs you...


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

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...


$47.40 $47.40 $47.40 $142.20

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

Wet Stretch TestAdvise

Recommendbetter hair, better result, better you

Let’s see how much more profit we make when we recommend a

Shampoo, Reconstructor & Conditioner...



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


$47.40 $47.40 $47.40 $142.20

$33.15 $33.15$175.35

If just ONE colour client buys...

23%You have just increased your gross profit by 23%

no extra time, same clientele



$47.40 $47.40 $47.40 $142.20

$33.15 $66.30$208.50

If just TWO colour client buys...

$33.15


$47.40 $47.40 $47.40 $142.20

$33.15 $99.45$241.65

If just THREE colour client buys...

$33.15 $33.15

Now add in a styling product or two and you’re really in

business!!



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


Styling Breakdown

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%


• The key to increasing our business is...

Fact Checkpoint

It is not unrealistic to expect that a client will take home at least one

product each time they visit our salon.


So why isn’t it happening?


• 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...

‘Selling’ is actually ‘satisfying a client’s need’.

As professionals, it should be part of the service we offer our

clients.



The Wet Stretch Test establishes our client’s need


The recommendation of product satisfies our client’s need.


This isn’t selling

IT’S OUR PROFESSIONAL DUTY!!


We don’t want our client’s to

There is a difference...

our products

We want them toour products

USEbuy


Clients shouldn’t be choosing which product to buy based on:

• display • choice of brands • packaging and smell


This relies on your client:

• being attracted to the product• taking the product off the shelf

• purchasing the product


This is also the main strength of...

Supermarkets Pharmacies Large Retail Outlets


What is our biggest strength?

The ability to analyse our client’s hair and recommend the correct products for them to use at home.


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

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.


Did you know?...


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.


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

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.


Point of difference


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.


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.


Point of difference

OCS IS A SYSTEM!


Point of difference

with products that are formulated to work with and compliment the colour


No other products on the market can make

this claim!!!

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.



As hairdressers, we are creative and

artistic.

But it is important to remember that we

should also be thriving business units.

Our clients should never be leaving the salon without:

• Education• The right products for their hair



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

Organic Color Systems Retailing by the Numbers

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Transcript of Organic Color Systems Retailing by the Numbers