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#1 (permalink) |
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I love Derf!!
![]() Join Date: Oct 19 2000
Location: Tampa, Florida
Posts: 1,455
Rep Power: 9
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Maximize Your Private Label Profits!
1) Focus on Private Label! You have the power to sell any product line you want, make sure you, your staff and tanners are focused on selling and using your private label because your profits depend on it! Do not allow any destractions! - 2) Your employees must use your private label exclusively! Why? Tanners often ask “ What do you use”. Your employees need to answer that question honestly and with conviction. Make a rule that your employees only use your private label products. Offer them a highly discounted price on your Private Label to ensure they are using it. Some employees are like small children and will “rebel” against what everyone else is using to be different. If one of your employees is not using your private label despite your rules then fire them because they are not a “team player”. If the products are not great and effective then do not stock them. Make sure you lead by example, by using your own private label when you tan. - 3) Price your Private Label Products as expensive as your other products! Why? Tanners believe “You get what you pay for”. We know that is not true. Major name brands have excess overhead, advertising and marketing expenses added to the cost of their products without improving the quality of the products one bit! You need to price your private label products just as high then offer discounts on your brand for tanners that are buying a package, members of your tanning club, monthly product specials, discount cards, and other “incentives” to get your best customers a discount on your private label. - 4) Use Higher Commissions on Private Label to Drive Your Profits! Your profit margin on your private label are as much as 200% to 300% as compared to many name brands with their suggest profit margins of just 100%. Use a little of that difference to reward your employees when they sell your private label product. If you typically offer a 10% commission on tanning product sales, then consider 15% on private label and 5% on other products. The result will be more profits in your pockets because your employees will focus on selling the products you make the most money on! - 5) New Products Sell! Why? Tanners are often asking “ What do you have that is new?” How often do you get excited with what is new? At Soakin’ Up The Rays, Inc., we are always introducing new and making product improvements. Keep trying samples of our new and improved formulas looking for products to add to your private label product line. With our new labeling option, it is very simple and cheap to add new products. The biggest mistake you can make with private label products is never changing or adding new products to your private label lineup. You should do this every 3-6 months. Tanners often select tanning products based on fragrance alone, the newest products often have the latest most popular fragrances! - 6) Improve your product packaging! Do not be afraid of change! You are not stuck with the same old packaging. Look for new ideas and improvements for your labels! Just like adding new products, always be thinking about how you can make your private label products look the best! It’s cheap and easy to make improvements. Tanners need to be attracted to picking up that bottle of lotion, watch what attracts your tanners and adjust your labels to be the most selected! - 7) Stop Grocery/Drug Store Diversion in it’s tracks! The tanners that buy indoor tanning products at their grocery, drug or discount retail store are buying them because they are very inexpensive often as little as $6 to $10. The best way to stop tanners from buying these products is to include a “free” bottle of tanning products. I suggest that you increase the price of your monthly special by $5 to include a basic private label product but tell tanners the product has a $15.00 retail. If you are giving away a bottle of product with every monthly package then these cheap tanners do not need that cheap lotion. - Add to your profits by selling two products at once! The best example of this is selling tanners one of your private label products then selling them an After Exposure Tanning Product (Moisturizer) with both of them 15% off. Bundling products together gives you the ability to make a small discount look big. You may want to consider selling tanners two different types of products at once, One for everyday use then a dark bronzer for tans before going out that night! More sales means more profits. - 9) Put it in writing! Use the free Soakin’ Up The Rays, Inc. tanner educational posters and private label catalog to teach your tanners about the benefits of using indoor tanning products. These posters and catalog will also make your private label product look very professional for you, your staff and your tanners. I suggest you put an educational poster in every one of your tanning rooms in a very nice frame and put the retail catalog in your lobby for tanners to read and take home. |
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#2 (permalink) |
![]() Join Date: Oct 23 2000
Location: alabama
Posts: 493
Rep Power: 9
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Gotta agree with Greg.
We stepped out in faith and brought our sonshine select private label line in from Greg. It is our best selling lotion. We have 7 different products and they all sell. I am selling our PL to customers that tan elsewhere. It's nice having your tanning products in the competitors salon. Oh yeah, it puts profits on the bottom line. We give our members a 20% discount and they like it and so do we. |
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