Diversion Hurts the Salon Industry

WHY SHOULD STYLISTS CARE WHERE PRODUCTS ARE SOLD?

We, as stylists, work hard to establish a relationship of trust, respect and admiration from our clients. The result of this relationship is our position as the client’s authority on hair, styling and styling products.

Our recommendations are the backbone of our service. The value of our expert opinions, recommendations and advice lead to customer loyalty and repeat business for our salons. Without this primary trust between stylist and client, the business becomes fragmented and salons’/stylists’ client bases become more fragile.

When 'salon only' professional hair care line that we “recommend” to our clients becomes available at mass-market retail outlets, we not only lose product revenue, but we also lose our niche identity and the trust of our clients. This leads directly to higher client turnover.

CAN DIVERSION EVER REALLY BE STOPPED ?

No, but with coordinated efforts, it must be controlled. Diversion is legal. There are millions $ to be gained for everybody involved, except legitimate salon owners. The problem starts with the manufacturers of professional hair care products. Product diversion drives a large percentage of manufacturers’ sales. This leaves many companies with a paradox of trying to curtail sales to mass-market retailers while at the same time lowering their gross sales significantly. It is not that the manufacturers turn a blind eye on this activity. Indeed, many manufacturers are not 100% hypocritical. Some genuinely would like to control and limit the sales of their products to non-salon outlets. It is our group’s intent to aid manufacturers in this ongoing challenge whenever we can.

Manufacturers that are found to be complicit in grey market sales or blatantly lax against diversion will be exposed to the professional salon industry and media by our organization.

Without assistance or organized pressure from the salon industry, manufacturers put up an unacceptably weak defense against diversion of their products to non-salon channels.

SAD’s objective is to actively mobilize salon owners and stylists across America to unite their efforts and band together to fight against product diversion. As a united front we hope to have our voices better heard by the manufacturers who have power and financial resources to severely curtail their products’ sales to groups that sell to mass-market retailers.