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Salon Retail Strategy Guide: 6 Proven Ways to Boost Product Sales in 2025

Salon Retail Strategy Guide: 6 Proven Ways to Boost Product Sales in 2025


Adam Durso

Published January 29, 2025

Updated February 28, 2025

Beauty salons and other beauty businesses might not think of themselves as retailers or give much thought to retail at all. If you count yourself among them, you are likely to leave a lot of money on the table. Retail accounts for more of a salon's revenue than you may think, about 8% on average, though successful salons can see that number rise to 15%. In fact, products enjoy a higher profit margin than services1.  

The opportunity for more revenue is there for salon owners, provided they have a robust retail strategy in play. With that in mind, let’s break down the most essential elements of a salon retail plan, and how to use your salon software to help you execute it. 

1. Find Your Retail Sales Percentage

As a salon owner, if you want to improve your retail game, you’ll need to first figure out your retail sales percentage. To do this, you can divide your number of total retail product sales (excluding gift cards or memberships) by your total revenue multiplied by one hundred.  

For those of us who prefer a good equation, that’s: (TRPS ÷ TR) × 100 

You can use the above formula to find your RSP across a week, month, or a year. So, a simple example might look like this: 

  • Salon's TRPS: $12,000 

  • Salon's Total Service Revenue: $88,000 

  • Salon's Total Earnings: $100,000 

Retail Sales Percentage = ($12,000 ÷ $100,000) × 100 = 12% 

ProTip: Most salon software can calculate this automatically in their reporting features, which you’ll need for the next step. 

2. Find Your Best-Selling Products

Assuming your business already selling various products, the next step is to uncover which ones fly off the shelves the most. If you utilize modern salon software, the tools you’ll rely on the most for this task are your reports, POS software, inventory management, and client profiles. 

Salon Reports

Reporting tools built into your software can generate detailed retail sales analytics.  

You will use these reports to: 

  • Track each retail product's earnings

  • Rank products by total sales volume 

  • Compare sales across time periods 

  • Identify top-selling product categories 

Ex. You review your monthly retail performance report and see that a certain hair rejuvenator sold 45 units at $2,475 in sales, making it your top seller for January. When you compare this data to last January's, you notice a 25% increase for this brand, which helps you plan next month's inventory order. 

ProTip: Products you sell AND those you use in services come at a cost, and not just to your clients. As a variable cost to your business, they influence how you price your services.

Salon POS System

You should use your point-of-sale (POS) system to track individual product sales in real time. Your POS system should also track retail patterns over extended periods (weekly, monthly, etc.) and help you determine which products need frequent reordering. 

Ex. Your POS system may flag that a certain bond-strengthening shampoo has been sold 12 times this week - triple the usual rate. The system also indicates that these transactions happened after a special training session where your whole team learned new features about the product. 

Salon Inventory

Speaking of reordering, you should track your salon’s inventory regularly.  

Specifically: 

  • Compare starting and ending inventory 

  • Note which products need frequent restocking 

  • Track product turnover rates 

  • Monitor stock depletion rates 

Ex.: If you checked your salon’s inventory every week, you may notice that you started with 24 bottles of Moroccan oil shampoo last week and only have 5 left - much faster movement than any other product. You may also notice that a certain leave-in hair mask is moving quickly, with 15 units sold. 

Client Purchase Histories

Analyzing individual purchase histories may seem like a trip into the weeds, but you can learn things from clients that you can’t from the tools mentioned above.  

For example, a client’s purchase history can allow you to track product recommendations that convert and note which services lead to the purchase of specific products. In addition to the what, These reports can give you additional insight into when clients like to purchase products.

Ex.: While reviewing client profiles, you may discover that 80% of your balayage clients purchase Purple Shampoo during their first visit. A deeper dive may also reveal that clients who buy a certain color extend shampoo typically return to buy the matching conditioner within two weeks. 

3. Prioritize Visibility & Accessibility

Where your shelves—and, consequently, the bulk of your retail offerings— are located within your salon or beauty business matters. You can cash in on product placement with the following two resources.

Power Positioning: Your Retail Power Wall

A power wall is a prominently placed display designed to maximize the visibility of your retail offerings and encourage impulse purchases.  

Your power wall should: 

  • Be positioned in a high-traffic area, typically near the reception desk or checkout area

  • Be well-lit and clearly visible 

  • Be placed at eye level for maximum customer engagement 

  • Be placed to the right of clients as they enter2    

  • Not block pathways, or inhibit the overall client experience

As far as product selection is concerned: 

  • Feature top-selling and high-margin hair and beauty products at eye level 

  • Include a mix of entry-level products 

  • Include a mix of professional hair care brands, styling products, treatment solutions and hair accessories 

  • Rotate products based on seasonality and weather conditions 

  • Stock products used in popular services 

Planned Disruptors

Disruptors are strategically deployed displays that feature salon retail products and generate spontaneous purchases. These work because they create interactive experiences, encourage retail product discovery and allow for immediate testing. 

Here's another equation: More retail opportunities = more retail revenue for you.

As far as placement, retail disruptors are meant to break up the normal salon flow but should be where clients naturally pause or wait during their salon visit. 

Examples of salon disruptors include: 

Product Test Bars

Dedicated areas for sampling products. These usually feature new arrivals or bestsellers and are located near checkout or reception. 

Ex.: A dry styling bar features dry shampoo and texture spray testers with salon tools where clients can refresh while their color processes 

Seasonal Pop-Up Displays

Temporary themed product collections that are often tied to seasons or promotions and placed in high-traffic areas. 

Ex.: Summer Protection Station: A collection of UV protectors, anti-humidity serums, and beach-wave sprays displayed on a surfboard-themed stand by the front window 

Treatment Experience Areas

Mini consultation stations for specific concerns that feature targeted product solutions and often include diagnostic tools or mirrors. 

Ex.: A repair station that includes a high-magnification mirror and damage assessment cards. Clients can examine their hair's porosity while testing our bond-building treatment system 

4. Set Up Your Online Store

Part of visibility and accessibility is making sure that you are selling products online. If you're in the beauty industry and you haven’t embraced online retail, it’s time to do so.  

An online store extends your salon's reach beyond traditional operating hours, allowing clients to make online purchases 24/7. While you may not be directly involved in every transaction, your salon continues to earn money even when it is closed.  

Once it is set up, there are a few basic things you’ll need to do to ensure the success of your online store and boost sales.

Make It User Friendly

A user-friendly online store is crucial for success. Ensure that it is mobile-responsive, as a sizable portion of online shopping occurs via smartphones.  

Successful online retailers, large and small, prioritize the following: 

  • Easy navigation  

  • Clear product categories 

  • A simple search function 

  • Detailed product descriptions (including ingredients, instructions, benefits, and usage instructions) 

  • Clearly displayed pricing 

  • High-quality images 

  • Clear shipping information, and any applicable taxes and fees.  

Finally, streamline the checkout process to minimize friction and encourage purchases. 

Marketing Your Online Store

To effectively market your online store, you’ll need to connect with clients across multiple channels. 

Here are some simple, multi-channel marketing strategies: 

Targeted Promotions

As we’ve already covered, client purchase histories are a goldmine for information, and you can use them to tailor promotions that resonate. For example, if a client often buys certain hair care products, offer them a discount on a new line of shampoos or conditioners.  

Use targeted marketing emails and SMS text campaigns to deliver these promotions at just the right time, like when they’re likely to be running low on their favorite products, or if their birthday is coming up. 

Social Media Campaigns

Your social media platforms can be powerful traffic drivers, which we will cover more in depth below. Post engaging content, such as tutorials, before-and-after transformations, or testimonials, and include direct links to relevant products in your store.  

Loyalty programs

Incentivizing clients is a great way to push your retail products. Reward your customers for their loyalty when they make purchases onsite, or online. Introduce a points-based system where customers earn rewards for purchases, referrals, or leaving reviews.  

Ensure points can be redeemed both online and in-salon for a seamless experience. Promote the program heavily across channels to encourage sign-ups. 

Salon-Exclusive Deals

Create a sense of exclusivity and urgency with deals that are only available to salon clients but redeemable online. This strategy bridges the gap between physical and digital spaces while incentivizing repeat visits.  

These can include: 

  • Bundled packages (shampoo + conditioner + treatment at a special price) 

  • "Pro-only" sizes of products not sold in regular retail 

  • Limited edition product sets created by the salon 

  • Special pricing/discounts for service clients 

5. Utilize Social Media

Effective social media content is a staple of a salon marketing plan and can significantly boost your online store's visibility and drive overall retail. It’s also free, and fun if you have a clear goal in mind. 

Utilize platforms like Instagram, Facebook, and TikTok (still alive, as of publication of this article) to highlight products, run contests, and engage with your audience. 

Some simple salon social media marketing content includes: 

Product education videos

Create short, engaging videos showing how to use specific products.

Ex.: "Watch as our hair stylist Maria shows how to apply K18 mask correctly - the secret is using it on towel-dried hair!" (30-second reel)* 

Detailed usage instructions

Provide comprehensive instructions for each product, including tips and tricks from your stylists. 

Ex.: Getting the most from your Olaplex No. 7? Apply 2-3 drops to damp hair, focusing mid-length to ends. (Pro tip: layer with No. 6 for extra smoothness!) 

Before-And-After Photos

Highlight the transformative power of your products with compelling visuals. 

Ex.: Check out Sarah’s transformation using Color Wow Dream Coat! Swipe to see her hair before and after (notice how the frizz is gone even in today's humidity) 

Client Reviews & Testimonials

Build trust and social proof by featuring positive client feedback. 

Ex.: I was skeptical about spending $40 on dry shampoo, but this Living Proof is worth every penny! My blowout lasted 5 days!" - Sarah M., verified purchase 

6. Incentivize Retail

To increase retail sales, you’ll need to rely on your stylists, and that requires some incentivizing. Start by instituting a simple commission, or reward system (something your salon software should allow you to do on the back end).  

Additionally, if stylists rent space inside your salon, you can also incentivize retail by deducting their commission from their overall rent. 

We aren’t suggesting that you teach your service providers to be pushy and overbearing salespeople. Rather, you should educate your hair stylists on how to educate clients about hair and beauty products.  

Teaching clients about the best products for their hair, skin and nails empowers them to purchase products based on their personal needs. In fact, clients are more likely to open their wallets for personalized recommendations like that3.  

Salon retailing doesn't have to be an inexact science. With a bit of technology, well-placed products and a personable approach, you can encourage clients to buy more products from you--instead of the big beauty industry retailers.

Sources 

  1. https://www.salontoday.com/620625/the-financials-of-retail 

  2. https://www.shopify.com/retail/how-to-optimize-your-stores-power-wall-to-spike-sales 

  3. https://www.cbinsights.com/research/report/beauty-trends-2021/ 

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