Drawing the line on diversion

[tangirl]

Where exactly do we draw the line? Do we complain when it is in the beauty supply stores being sold for our cost? Do we complain when it is being sold in any venue that is not an actual salon?

I went to a store called Ulta yesterday. They carry just about everything. Bath products, body lotion, hair products, perfume. None of these things are being sold much cheaper than you would find in a hair salon or grocery store. I've been going there once a week to see if they added any tanning products to their collection of Hawaiian Tropic. Well, guess what, they did.

Yesterday afternoon, they had a selection of Supre, Swedish Beauty, JohnAbate, Body Drench, Hoss Sauce, CalTan, Most and EmBay. All of the products were listed at our suggested retail price.

So, I ask, where do we draw the line. They are not undercutting our pricing, but it is being sold in a non-salon environment.

[neon]

Being new to this industry I thought the biggest problem with diversion was the fact the products were being sold at our cost or even cheaper in some cases. It is hard to think about losing sells of tanning lotions to another type of store,however if this place is selling at MSRP how can we complain?

[Big Dawg]

If it is at suggested retail I don't care who sells it.

[Shannon_tyh]

Sorry, but these are "suppose to be Tanning Salon Products Only". So even if they are selling them at suggested retail, they should not have them to begin with.

[BooBop]

Ahh, but did you know that a lot of Beauty Suppy Houses actually price the products at retail, just incase a not professional comes in! And then when you show your lic. they will sell at salon cost.

[Shannon_tyh]

Still the point is that they should not have the products to begin with. But that's just my 2 cents on the matter.

[Max Recone]

To: TanTalk.com readers and supporters:


First of all, almost Happy New Year!

As you are aware, at California Tan, we do not want our products sold in any self-serve environment. If the poster has a specific store that they found our new products in, we ask him/her to send the information to
Mrr1769@aol.com or to mrecone@cltan.com.

California Tan does not sell Ulta 3, Cosmetics Plus or any other consumer self-serve environment. These products (assuming they are not counterfit), would have had to come from one of our clients. We will work with you the salon community to attempt to identify who that supplier may be.

Looking forward to the detailed information.


Thank you for bringing this serious issue to our attention.


Max Recone

if you prefer to speak to me directly, please call me at 917 971-0495

	MR International

[tangirl]

Max - I did not notice if they were the new products or not.

I just wanted to bring this to everyone's attention as something we need to think about. Since most of us are against diversion, would you consider it diversion if a non-tanning salon was selling tanning products no matter what the price is? I, personally, have gotten to the point where I don't care if they are selling it at cost or retail, I don't think a non-tanning salon should be selling tanning salon products. I don't sell makeup, shampoo, perfume, etc. Customers going to these types of stores would have no idea what type of product they were buying and if it is right for them or not.

We need to decide where we want to take our battle against diversion. Are we going just against the guys selling below suggested retail? Or are we going against anyone "non-tanning" selling tanning products?

[Shannon_tyh]

Tangirl,
I agree with you about that non tanning salons should not be selling tanning products either. I am like you, I do not sell other "salon only" products. So therefore, I feel as if these other salons should not be selling tanning products.

[BooBop]

Tangirl, I know you have been under the weather lately, but have you a chance to see if any of the new products were there?

If so, call Max and/or Frank Abate and tell them what is there. They may want to track it.