I'm going to be straight with you. If your retail products are just sitting on shelves collecting dust, your team is not actively selling them during services.
In my 30 years running salons and coaching hundreds of owners through the Level Up Academy, I've seen this problem play out over and over. Retail should be a reliable revenue stream, not an afterthought. Yet most salon owners treat it like a bonus, not a necessity. That's why you have fully stocked shelves but empty cash registers.
The Problem: Passive Selling Kills Retail
Here's a perfect example. A salon I recently coached was pulling in $55,000 a month in service revenue but only about $800 in retail sales. That's less than 2 percent of their total income. They had $15,000 worth of product just sitting there collecting dust.
Why? Because the stylists were waiting for clients to ask about products instead of recommending them proactively.
This is a classic example of what Michael Gerber talks about in the E-Myth. Stylists want to focus on their craft, not selling products. But here's the thing - ignoring retail means you're leaving money on the table every single day.
When I ask salon owners, "When was the last time a stylist said, 'You need this product for your specific hair issue'?" I usually get a blank stare. That's the problem right there.
Retail prescription needs to be baked into your salon's DNA. It can't feel optional or awkward. It has to be part of every client interaction, every time.
Three Fixes to Turn Retail Into Revenue
I've seen salons double, triple, or even increase their retail sales fivefold with the exact same inventory by making three key changes. Here's what works:
1. Make Product Recommendations Mandatory at Checkout
This needs to be built into your salon's operating system. When a client is paying, the stylist should always ask, "What products are you using at home?" This simple question opens the door to recommending the right product.
It also fits perfectly with the EOS habit of creating clear, repeatable processes that everyone follows. No exceptions. And so many salon owners are struggling with being fully booked but still broke because they're missing these simple revenue opportunities.
2. Increase Stylist Retail Commission to at Least 15 Percent
If stylists only earn 10 percent or less, they won't be motivated to push products. I've seen this countless times. When you raise commissions, you change behavior. Stylists start thinking about retail as part of their paycheck, not a chore.
You can use my commission calculator to see how this impacts your numbers and makes sure everyone wins.
3. Train Your Team on How to Sell Without Being Salesy
Use real, simple language focused on solving client problems. Instead of "Would you like to buy this?" teach stylists to say, "This product will help keep your color vibrant between visits."
This approach builds trust and fits the 7 Habits mindset of win-win thinking. It helps clients feel cared for, not sold to. It's a win-win for everybody.
In my coaching, I emphasize working ON your business, not just IN it. Retail is a perfect example of where systems beat relying on individual personalities. When you create clear processes and train your team well, retail stops being a hope and becomes a predictable revenue stream.
Stop Leaving Money on the Table
Retail is not extra. It's essential. Every salon owner I've coached who commits to these changes sees a noticeable jump in retail sales and overall profitability. It also improves client satisfaction, because you're providing solutions that keep their hair looking great between appointments.
If your retail is sitting on shelves, it's time to act. Use the frameworks and systems you already know - EOS for process, E-Myth for working ON your business, and 7 Habits for mindset - to make retail a consistent driver of revenue.
And here's what I like to do: start tracking your retail sales as a percentage of service revenue. If you're under 15 percent, you have work to do. Most of my successful clients hit 20-25 percent consistently once they dial in these systems.
If you want help building a salon that runs itself and maximizes every revenue stream, check out how to increase your salon revenue without adding more hours behind the chair. The Level Up Academy can show you exactly how to make this happen.
Keep Reading
- Where Is All Your Money Going Every Month?
- What Does a Real Salon Turnaround Actually Look Like? (4 Case Studies From Inside Level Up)
Want to Go Deeper?
I recorded a video that goes deeper on this topic. Watch it here: Why Salon Retail Fails (And How Top Stylists Sell Without Feeling Salesy)
If you want the complete system for running your salon like a real business, check out The Mastery Bundle. It's four masterclasses with ready-to-use templates that cover everything from financials to team building to marketing.
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