Have you heard the joke about the unscrupulous salons that are supplying diverters with enough products to fill big-box warehouses and mass-merchandise chains across the country? Is there anyone left who really laughs at this comedic routine? (John Kaytaz, founder of JKS International)
Just Say “No”
For the majority of salons that don’t emphasize retail sales, diversion is merely a minor irritant, while the benefits provided by many companies that stock mass-merchandise shelves are great—education and supply promotions topping the list. But for the salons that truly rely on retail for their profitability—e.g. producing retail figures in the 25% range—diversion of their chosen product brands is nothing short of a financial disaster. Tired of complaining bitterly about diversion, many of these illustrious owners are taking matters into their own hands.
“As salon owners, we’re part of the diversion problem because we keep buying products that are heavily and consistently diverted,” emphasizes Lucci. “My advice: Pull the offending products from your shelves and align your company with those that believe in and practice exclusive support. We recently had to remove a profitable line from our shelves due to heavy diversion. In its stead, we’ve redirected our clients to purchase two ‘clean brands’ that we’ve brought on board: Eufora and Oribe. Doing this hurts in the short-term, but the long-term benefits are immeasurable.”
Frank Shipman, owner of TC Salons and Spas, a two-location business in Pennsylvania that produces in excess of $300,000 per year in retail sales, is taking the same tactic. “We will not support any company that doesn’t support us as beauty professionals,” he avows. “We just had to yank a very exclusive line off our shelves after it began appearing in area grocery stores. We replaced it with Profound Beauty, which isn’t being diverted. Through the combined efforts of our staff members, it’s now flying off our shelves.”
