ASCP Skin Deep

WINTER 2022

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New member benefit! Get the ASCP SkinPro App at ascpskincare.com/skinpro 39 CREATING RETAIL COLLECTIONS OR BUNDLES can be an effective way to increase retail sales, encourage guests to try new products, and keep them excited about your retail offerings. Creating an attractive bundle with a compelling offer can help you move aging inventory, eliminate discontinued brands, or clear out products you no longer want to keep in stock. Below are 10 sure-to-sell strategies for bundling retail products. 1. Start by looking at your average retail purchase price and the average retail purchase per appointment. You want the sweet spot—the price that motivates your guests to buy. Price your bundles based on these statistics. 2. Next, look at the average order value (AOV), which calculates how much your guests spend each time they make a purchase online, in the facility, or from a mobile app. You can quickly calculate the AOV by dividing the total retail revenue (by month, quarter, or year) by the total number of retail tickets. For example, the Fabu-Skin Spa has a $50 average retail purchase price for a single product. The AOV is $175. Fabu-Skin created a "Morning Trio" package with a serum, moisturizer, and sunscreen packaged in a logo mug. Wholesale cost of the three products is $70. The logo mug has an added perceived value to the bundle, and it is priced at $165—slightly under the average order value. 3. Build your bundle with 2–4 products. The products you choose do not all have to be from the same brand. Most retailers find that duos or trios sell faster. Four products or more are better promoted as a home-care protocol kit. 4. Every bundle should have a theme, purpose, or solution. Creative names such as "Safe Fun in the Sun," "Girl's Night In," or "Weekend Recharge" create buzz and work well for social media and in-house marketing. 5. Move older or excess inventory by bundling slow sellers with a better selling product. 10 Ways to Bundle Retail Sure-to-sell strategies for maximum retail success by Patti Biro 6. Do not put your best-selling "hero" products in your bundle. There is no need to create a promotion for a product that already sells itself! 7. Evaluate the retail products with the highest profit margins—target these for inclusion in a bundle. Simply doubling your wholesale price is not enough. You should aim for a profit margin between 2.25 and 2.5. Including free or deeply discounted products you have received from a supplier can help increase the perceived value of a bundle while boosting your profit margin. 8. Fewer choices are better. If you are creating bundles to sell during a special event, you need no more than three choices. Too many choices can lead to no sales! 9. Pairing retail bundles with a specific service you offer makes it easy for staff to make product recommendations. Match the names of these bundles to the treatments. You might create a post-peel trio, a neck rejuvenation bundle, or an acne rescue kit. 10. Promote your retail bundles as a limited- time offer to create a sense of urgency. 10 WAYS

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