Friday, August 28, 2009

Stop Salon Product Diversion


It’s easier then you might think. Consider designing your own exclusive salon product line. Create it with your own formulas and packaging design like I've done 30 years ago when I saw this train coming down the track. It’s a bit more costly but well worth the time and expense. Most of the large salon brands you retail now started this way.


Another way is to order Private Label products with your salon name. Many private label salon products are every bit as effective as large well known salon brands and some are even better. Many specialty styling products (pomades, wax, shine drops and the like) are more affordable through a private label company and can be sold at a lower or higher price point with your salon name. Private label companies will use your salon logo or help you design one. There are many high quality private label company that can walk you through the process. For example, Aware and Liquid Tec are two well know companies here in California. And best of all, no one will ever see your "exclusive salon brand" in any retail outlet or salon around the corner from you ever... at any price!


Another option is to retail high quality salon products from small salon only boutique brands. I've been selling my Hair Research Salon Products direct to salon across America for 30 years with an exclusive distribution program. No two salons within 50 miles can carry them. Now that’s protection you won't get from many well know established salon brands.


Many popular salon only brands are doing their best to stop diversion. One salon only brand that has been spend time and a great deal of expense to stop diversion for many years is Paul Mitchell . For the last two and a half years PM as lowered it's diversion by 50%. And they did it the hard way. Every PM employee in the field, and there are a lot, is required to purchase (each month) $500.00 worth of products they find in any retail outlet. All PM products are coded (something they have done for years) making it easy to find the “distributor who received them originally”. Those Distributors are then required to pay $150.00 for each bottle found with their code. This has made the PM salon only products unavailable in many of the leading retailers as they will not stock products that aren't available on a regular basis. Unfortunately far too many popular salon only brands simply turn a blind eye.

Your comments welcomed

3 comments:

  1. Product diversion is our worst enemy as professionals. We have to educate our clients and make them aware of diversion. We as professionals should be suggesting products to our clients as we all do, but when the client brings up buying it cheaper in the store, we have to then remind them about diversion and suggest that they buy it from you or a professional Salon.

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  2. We should not have to remind clients of diversion, as they are the client. We should be telling major brands such as (Paul M, Redken, Matrix etc) that we will not buy their products if we see them in the stores. They have let distributors ruin our retail business and they should go back to selling directly to salons or making major changes to the way they gain distributors and the way they handle diversion. Since I have heard so much about diversion, it seems I have been seeing more professional products in grocery, and box stores even more. The laws need to be changed about the first buyer and allowing these products go into mass market. Us as professional stylists need to make a stand and force these companies to comply as being professional instead of careless manufacturers just wanting money and not ethics.

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  3. Great points Anonymous writer. I do know that Paul Mitchell is leading the fight against diversion and is down the most of any other company. PM is the only company privately held and has a national commercial stating that they only sell to professional salons. The better the product the more in demand it is and that is the challenge. PM fines $250.00 per bottle if the person is caught selling it. It comes from the people we don't know about and once it's sold to them it's not illegal. Store's can purchase it from anywhere.
    We need to educate our clients and keep them aware to purchase from us in Salons.
    Great Comment and Thank You!

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