Are retail sales hurting your business’s profitability? Unsure of how to boost your retail sales to become a high volume retail practice?
Selling retail, done right, can increase your practice’s profitability with minimal time and effort required. Unfortunately, too many businesses miss out on easy revenue because they lack the right strategies to become a high volume retail practice.
Just selling retail without any strategy will slowly but surely eat away at your business’s profits. Stop wasting time and money with nonexistent med spa retail sales strategies! In this article, you’ll learn 2 simple yet highly effective retail optimization strategies to help you cut off stagnant products and capitalize on profitable inventory.
Strategy #1: The Top Sellers Method
The top sellers method is a retail optimization strategy that uses the 80-20 analysis to figure out which products are top-sellers, and which are not. The 80-20 analysis assumes that about 80% percent of your retail sales come from about 20% of your products. In other words, only about 20% of your retail is making up the majority of your retail profits.
This retail optimization strategy is a great way to determine what’s selling, and what’s not. Follow the below steps to identify your top 20% sellers:
- Run a report of your retail sales by units sold within the last 6 months
- List your products, from high to low, based on the number of units sold
- Analyze your list using the 80-20 analysis
- Streamline your med spa retail choices based on your analysis in Step 3
Identifying your top sellers is effective because it tells you which products you may need to limit or eliminate from your shelves. Eliminating the products that make up only 20% of your retail sales gives you more shelf space to fill with your best sellers. And, it provides you with more inventory dollars you can reinvest into products that are actually making consistent sales and raising your practice’s profitability.
Plus, identifying your top-selling products allows you to align your training and marketing efforts toward promoting the right products so you can become a high volume retail practice. For example, you can promote your best-selling products in cross-promotions to help boost sales in other services you offer. And, you can train your staff to recommend certain best-selling products first so you can continue to capitalize on your top-selling products.
Strategy #2: The Less Is More Approach
Another med spa retail optimization strategy is the “less is more” approach which focuses on partnering with only a few vendors so you can prioritize making strategic relationships, rather than spreading yourself too thin. When you have too many vendors, this makes it difficult to form deep connections with each vendor.
Forming strategic relationships with a few vendors opens up your potential to get samples, training, marketing assets, and free products from these vendors as they also value close partnerships with businesses. Therefore, consider consolidating your current vendor partnerships down to less than 3 skincare vendors so you can prioritize deep business relationships that can yield several benefits for your practice.
Again, vendors also value developing close partnerships with the businesses that drive large volumes and sales for their products. Oftentimes, vendors will incentivize these close connections by providing:
- Free samples
- Staff training
- Displays and templates to spotlight vendor promotions
- Support for joint marketing campaigns that spotlight premium lines
- And more!
Therefore, creating close relationships with just a few vendors can be beneficial for both you and the vendors you partner with. Not only will you likely reap the benefits through the incentives listed above, but your vendor will appreciate your commitment and the high inventory volume you order from them month after month!
How to Gain Reviews for New Retail Products
The 2 med spa retail optimization strategies detailed above are great for maximizing profits out of your existing inventory so you can become a high volume retail practice. However, what if you decide to introduce new retail products? How can you maximize your profits with new retail products so those new products don’t just collect dust on your shelves?
Selling new retail products can be difficult, especially if you don’t have any reviews, testimonials, or before and after photos yet to prove the product’s amazing results to your clients. Reviews and client testimonials can make or break a new product and can make all the difference between discontinuing a new product vs that new product becoming a best-seller for your business.
If you are struggling to gain reviews and client testimonials for a new retail product, consider offering discounts to a patient focus group in exchange for honest reviews about the new product. This strategy is great for multiple reasons. First, discounting the new product will incentivize your patients to want to test out the product. Plus, this helps you receive client reviews and testimonials fast so you have real data and reviews to back up how amazing the new product is to your other clients.
Another tip: have your staff try out new products at home so they can speak from experience about your new products. For example, if you offer a new facial moisturizer, have your staff try out the new moisturizer for themselves so they can gain a better understanding of the product, as well as personally show off the moisturizer’s amazing benefits.
When your staff has first-hand experience trying new products, they not only know the ins and outs of the product better, but they can show off their amazing results to your patients, which can further help market the new product.
Stop Wasting Your Business’s Potential
As you can see, offering a strategic selection of top selling products from only a few vendors are 2 simple yet effective retail optimization strategies you can use to boost your profitability. Med spa retail sales done right can be a simple, low-effort way to boost your practice’s revenue. Don’t let low-selling products take up valuable space, inventory dollars, and keep you from being a high volume retail practice!
Want to learn more proven strategies to boost your revenue? Book a free strategy call today with one of our PGC experts to help raise your business’s bottom line.