2. Retail Management Best Practices Franchisee Highlight

3. The Barnes Group DOUG BARNES LAURA KRAFKA Founder & Franchise Owner
Chief Operations Officer

4. Walmart Locations
Cost Cutters
SmartStyle

5. How do you balance keeping your retail inventory trim and still moving it off the shelves at the rate you do?

6. MAINTAINING RETAIL BALANCE
Order Smart
Manage Inventory
Market to the Walmart Guest
MOTIVATING STAFF
Regis Resources
Vendor Focus
Stylist Training & Incentives

7. MAINTAINING RETAIL BALANCE
Order Smart 1
Manage Inventory 2
Market to the Walmart Guest 3

8. Order Smart Setting budgets
for each salon to be followed when ordering
Ordering regularly
weekly basis (FPS recommends every 2 weeks)
Setting PAR levels
on every item to eliminate over/under-buying
Stocking up on deals
BOGOS, DUOS, monthly specials, New Lines
Running SKU reports (by salon)
top 25 for best sellers, liters only, Focus Products

9. Bring in NEW Lines & Support it
Order Smart
Bring in NEW Lines & Support it

10. Manage Inventory Product on shelves
best sellers = 4-6 each, all else at least 2 each
Tracking EVERY item
adjusting in & out: backbar, transferred to other stores, returns
Inventory SKU count
every 3-4 months
Strong inventory of top sellers
what is actually sold vs what stylists believe they sell

11. Market to the Walmart Guest

12. What are the incentives, programs, or training you provide your staff to motivate them on product sales?

13. 1 2 3 MOTIVATING STAFF Regis Franchise Resources Specific Vendor Focus
Stylist Training & Incentives 3

14. Regis Franchise Resources
We purchase exclusively from Regis Franchise Product Sales
This allows for buying power, vendor exclusives, and instrumental support from Paula, Sam, and their team
Franchise Product Sales

15. Vendor Focus Primary & Secondary
One per year as primary retail product line focus
Gets teams really focused on one line, learning it & educating the guest/ client (Paul Mitchell)
One–two vendors per year as secondary focus
Allows stylists to experience the best of two different worlds, in product & education (Sexy & Matrix)
Primary & Secondary

16. Stylist Training & Incentives
Monthly combined product knowledge and technical training – which products really work for different hair types
Facebook page highlighting product and training
Leadership meeting – Paul Mitchell PK and Technical training & samples for stylists
Ongoing Training

18. Stylist Training & Incentives
Keep things fun! Try frequent contests between individuals and salons. It’s amazing what a little competition can do.
Our teams got tired of hearing about " combo tickets,” so we ran a contest to rename it on our Facebook page, and the winner with the most ‘likes’ was "FUSION tickets“!
Flash Contests: whoever sells most of a product in 3 days, prizes must be varied and worth it (tools, cash, gift cards, education, trips, etc.)
Leveraging Competition

20. Stylist Training & Incentives
$1 for every / any retail product sold (except house sales), rather than a commission scale.
Vast majority of our stylists and students in cosmetology/barber schools did not understand how to figure retail commission, no matter how many times it was explained.
We took a very strong look at our average SKU prices before implementing.
Structuring Commission

21. Buck a Bottle House Sales = 65%

22. Questions?

23. The Barnes Group DOUG BARNES LAURA KRAFKA Founder & Franchise Owner
LAURA KRAFKA
Chief Operations Officer