Profitable Spa Retail Program How to Build a the Retail Program

Profitable Spa Retail Program: Why Your Spa Needs a Strong Retail Program

If you're only making money when clients are on your treatment table, you're leaving significant revenue on the table. The reality is that most spas generate only 5-15% of their revenue from retail sales, when the industry benchmark for successful spas is 20-40%.

The math is compelling:

A spa performing 100 facial treatments per month at $150 each generates $15,000 in service revenue. If only 20% of those clients purchase a $50 retail product, that's an additional $1,000 monthly or $12,000 annually. Increase that to 40% retail conversion (which is achievable with proper systems), and you've added $24,000 in annual revenue with minimal additional effort.

But retail revenue isn't just about the numbers—it's about:

Extended Client Results

Professional treatments deliver immediate results, but those results fade without proper home care. When clients use professional-grade products between visits, they see better outcomes, become more satisfied, and book appointments more frequently. Retail products extend the value of your services beyond the treatment room.

Increased Client Loyalty

Clients who purchase retail products are statistically more likely to return for additional services. Industry data shows that clients who buy products have a 60% higher retention rate than those who don't. When clients invest in take-home products, they're investing in their relationship with your spa.

Higher Profit Margins

Service-based revenue requires your time and physical presence. Retail sales, once systems are in place, generate passive income. Product margins typically range from 50-100% (when purchasing wholesale), compared to service margins of 30-50% after accounting for labor, time, and overhead.

Professional Authority

Offering curated, professional-grade products positions you as an authority. You're not just providing services—you're offering comprehensive skin solutions. This elevates your spa from a service provider to a trusted skincare partner.

Competitive Differentiation

In a market saturated with spas offering similar services at similar prices, your retail selection and expertise can be a key differentiator. Exclusive formulations or hard-to-find professional products give clients a reason to choose your spa over competitors.

Step 1: Select Products That Actually Sell

The biggest mistake spa owners make is stocking products they personally love rather than products their clients will buy. Your retail selection should be strategic, not emotional.

Understand Your Client Demographics

Before selecting a single product, analyze your client base:

Age Range: Are your clients primarily in their 20s-30s (preventative skincare), 40s-50s (anti-aging focus), or 60+ (barrier repair and nourishment)?

Skin Concerns: What are the most common concerns you treat? Acne, hyperpigmentation, aging, sensitivity, dryness?

Budget: What's your average treatment price? Clients who book $200 facials expect and can afford premium retail, while clients booking $75 treatments may need more accessible price points.

Lifestyle: Are your clients rushed professionals who need simple 3-step routines, or skincare enthusiasts who love multi-step protocols?

The Core Retail Lineup (Start Here)

Don't overwhelm yourself or your clients with 50 SKUs. Start with a focused, strategic lineup that covers the essentials:

Category 1: Cleansers (2-3 Options)

Why Cleansers Sell:

• Daily use product (high repurchase frequency)
• Entry-level price point (easier first purchase)
• Immediate sensory experience during treatments
• Universal need across all skin types

What to Stock:

• Gel cleanser for oily/combination/acne-prone skin
• Cream cleanser for dry/mature/sensitive skin
• Optional: Exfoliating cleanser for texture concerns

Pro Tip: Use these cleansers in your treatments so clients experience them firsthand. Nothing sells a cleanser better than using it during a facial. Consider offering professional cleansers in bulk to reduce costs while maintaining quality.

Category 2: Treatment Serums (3-5 Options)

Why Serums Sell:

• Highly concentrated, visible results
• Addresses specific concerns (easy to recommend)
• Higher price point = higher profit per sale
• Clients perceive as "professional" products

What to Stock:

• Hyaluronic acid serum - Universal hydrator, suits all skin types
• Peptide serum - Anti-aging, firms, reduces wrinkles
• Vitamin C serum - Brightening, antioxidant protection
• Niacinamide serum - Oil control, pore refinement, redness reduction
• Optional: Specialty serum based on your niche (retinol alternative, blue tansy calming serum, etc.)

Pro Tip: Serums should be the foundation of your retail program. They're high-margin, targeted, and create immediate visible results that drive repurchases.

Category 3: Moisturizers (2-4 Options)

Why Moisturizers Sell:

• Daily essential, consistent repurchase
• Addresses barrier health (universal need)
• Price range flexibility (can offer various tiers)

What to Stock:

• Lightweight day moisturizer (gel or lotion, often with SPF)
• Rich night cream (barrier repair, anti-aging actives)
• Optional: Eye cream (high margin, addresses specific concern)
• Optional: Facial oil for dry or mature skin clients

Pro Tip: Stock face moisturizers that complement your serums. Layer them during treatments to show clients how they work together.

Category 4: Specialty Treatments (2-3 Options)

Why Specialty Products Sell:

• Create "at-home spa experience"
• Higher price points
• Gift-friendly (boost seasonal sales)
• Generate excitement and word-of-mouth

What to Stock:

• Face mask (clay, hydrating, or brightening)
• Exfoliating treatment (AHA/BHA pads or enzyme mask)
• Lip treatment or specialty targeted product

Category 5: Add-On & Impulse Items

Why Small Items Matter:

• Low barrier to first purchase
• Introduce clients to your retail offerings
• High impulse-buy potential at checkout

What to Stock:

• Sheet masks (single-use, gift-friendly)
• Travel sizes of hero products
• Spa headbands or beauty tools
• Seasonal or limited edition items

Quality Over Quantity

It's better to stock 12-15 exceptional products that you can speak about confidently than 50 mediocre products gathering dust. Each product should:

✅ Address a specific, common skin concern ✅ Deliver visible results within 2-4 weeks ✅ Be something you've personally tested and believe in ✅ Fit within your clients' budget range ✅ Have clean, professional packaging that photographs well ✅ Come from a reliable supplier with consistent quality

Working With the Right Wholesale Partner

Your product quality directly reflects on your spa's reputation. Choosing the right wholesale partner is critical. When evaluating suppliers, ask:

Quality Questions:

• Are products manufactured in FDA-registered, GMP-compliant facilities?
• Can you provide full ingredient lists and concentrations?
• Are products stability tested?
• What's your quality control process?

Business Questions:

• What are your minimum order quantities?
• Can I start small and scale up?
• Do you offer private labeling options?
• What's your average delivery time?
• Do you provide product education materials?

Support Questions:

• Will you help train my staff on ingredients and benefits?
• Do you offer marketing materials (shelf talkers, brochures)?
• Can I get samples before committing to full sizes?

At 4everAlive Labs, we specifically designed our wholesale program for spa owners who want to start strong without overwhelming inventory commitments. Our no minimum order quantities mean you can test products with your clients before investing heavily, and our small-batch formulations ensure freshness and potency.

Step 2: Master Your Pricing Strategy

Pricing can make or break your retail program. Price too high, and products sit on shelves. Price too low, and you leave money on the table while devaluing your expertise.

Understanding Retail Markup

The standard retail markup in the spa industry ranges from 100-200% (keystone to triple keystone), but the right markup for your spa depends on several factors:

Standard Pricing Models:

2x Markup (Keystone):

• Wholesale cost: $20 → Retail price: $40
• Profit per unit: $20 (50% margin)
• Best for: High-volume products, competitive markets, entry-level price points

2.5x Markup:

• Wholesale cost: $20 → Retail price: $50
• Profit per unit: $30 (60% margin)
• Best for: Moderate competition, mid-tier positioning

3x Markup (Triple Keystone):

• Wholesale cost: $20 → Retail price: $60
• Profit per unit: $40 (67% margin)
• Best for: Exclusive products, luxury positioning, products with high service education

When to Use Each:

Use 2x markup for:

• High-volume staples (cleansers, basic moisturizers)
• Products with heavy online competition
• Entry-level price points to lower purchase barriers

Use 2.5x markup for:

• Most of your core lineup
• Products that require some education but aren't highly specialized
• Serums and treatment products

Use 3x markup for:

• Exclusive or hard-to-find products
• Items requiring significant staff education/consultation
• Luxury or specialty treatments
• Private label products unique to your spa

The Psychology of Pricing

Price Anchoring: Position your prices strategically by offering a range. If your most expensive serum is $120, clients perceive a $65 serum as "mid-range" and accessible. Without that high anchor, $65 feels expensive.

Odd Pricing vs. Even Pricing:

• Odd pricing ($39.99) signals value and deals
• Even pricing ($40.00) signals quality and luxury
• For spa retail, even pricing typically performs better ($45, $65, $85) as it reinforces professional positioning

Bundle Pricing: Create value through bundling without devaluing individual products:

• "Complete Routine Set" - Cleanser + Serum + Moisturizer ($150 value for $135)
• "Treatment Boost Kit" - Two complementary serums ($110 value for $99)

Bundles increase average transaction value while making clients feel they're getting a deal.

Competitive Pricing Research

Research what similar products sell for in your market:

Check:

• Competing local spas (if they display prices online)
• Online retailers (Dermstore, SkinStore, professional sites)
• Department store beauty counters
• Medical spas and dermatology offices

Position yourself intentionally:

• Luxury positioning: 10-20% above market average (requires exceptional service/exclusivity)
• Competitive positioning: Aligned with market average (emphasize value and results)
• Value positioning: 10-15% below average (requires higher volume, less sustainable long-term)

Pro Insight: Most successful spas position slightly above market average while emphasizing the value of professional guidance, exclusive access, and post-purchase support.

Pricing for Profitability

To ensure your retail program is truly profitable, calculate the true cost of products:

Full Cost Formula:

Wholesale Cost + Shipping + Storage + Staff Time + Credit Card Fees = True Cost

Example:

• Product wholesale cost: $20
• Shipping (allocated): $2
• Staff time for inventory/display (allocated): $1
• Credit card processing (3%): Calculated at sale
• True cost: $23

If you retail at $50:

• Gross profit: $27
• After 3% CC fee ($1.50): $25.50 net profit
• Profit margin: 51%

This ensures you're not inadvertently losing money on retail sales.

Dynamic Pricing Strategies

Seasonal Adjustments:

• Summer: Promote lightweight, oil-free, SPF products at slight premium
• Winter: Feature rich, barrier-repair products
• Holidays: Create gift sets at value pricing to drive volume

Loyalty Pricing:

• Offer 10-15% retail discounts to membership clients
• VIP pricing can drive both service and retail loyalty

First-Time Buyer Incentive:

• "Try any product at 20% off with your first facial"
• Lowers barrier to initial retail purchase
• Gets clients into retail buying habit

Step 3: Create Treatment-to-Retail Pathways

The most profitable spa retail programs don't rely on clients browsing shelves—they create intentional pathways from treatment room to retail purchase.

The Consultation Integration

Every treatment should begin with a consultation that naturally leads to product recommendations:

Effective Consultation Framework:

1. Assess: "What are your main skin concerns?"
2. Educate: "Here's what I'm seeing and why this is happening..."
3. Treat: "Today I'm going to use [specific products] to address..."
4. Extend: "To maintain these results at home, you'll want to..."

Example in Practice:

"I'm noticing some dehydration and fine lines around your eyes. That's really common as we age—our skin produces less hyaluronic acid naturally. Today I'm using our Hyaluronic Acid Serum during your treatment—you can feel how it instantly plumps the skin. To maintain this hydration between visits, I recommend using this serum morning and night. Let me show you the exact application technique..."

Notice the structure: ✅ Identified concern ✅ Explained why it happens ✅ Used product during treatment (creates experience) ✅ Made specific recommendation with usage instructions ✅ Demonstrated application (added value)

The "Prescription Pad" Technique

After each treatment, provide a written skincare "prescription" with specific product recommendations:

Sample Prescription Format:

CLIENT NAME: Sarah JohnsonDATE: January 15, 2026SKIN CONCERNS: Dehydration, early fine lines, dullnessYOUR PERSONALIZED ROUTINE:MORNING:□ Gentle Gel Cleanser□ Hyaluronic Acid Serum (2-3 drops)□ Lightweight Day Moisturizer with SPFEVENING:□ Cream Cleanser□ Multi-Peptide Serum (2-3 drops)□ Rich Night Cream2-3X WEEKLY:□ Gentle Enzyme Mask (10 minutes)NEXT TREATMENT: Schedule in 4 weeks

Why This Works:

• Creates professional authority (like a doctor's prescription)
• Gives clients clear, actionable steps
• Documents your recommendations
• Something tangible to take home
• Easy to reference when purchasing

Clients are 3x more likely to purchase when given specific written recommendations versus verbal suggestions.

The "Featured Treatment Product" Strategy

During each treatment, intentionally highlight one "hero" product:

How to Execute:

1. Select one key product per treatment (serum, mask, or specialty item)
2. Explain what it is and why you chose it for their skin
3. Apply with intention, describing sensory experience
4. Show the product and packaging after application
5. Offer a special treatment-day discount (10-15% off)

Script Example:

"The star of today's treatment is this Multi-Peptide Serum. Peptides are like little messengers that tell your skin to produce more collagen. You should feel a slight tightening sensation—that's the peptides at work. This is one of our best-sellers because clients see visible firmness within about 6-8 weeks. Since you're here today, I can offer you 15% off if you'd like to take one home."

The Sample Strategy

Strategic sampling can drive retail sales, but only when done correctly:

Effective Sampling Rules:

✅ Do: Offer samples of products you genuinely think suit their skin ✅ Do: Provide 3-7 days worth (enough to see initial results) ✅ Do: Give application instructions and follow up ✅ Do: Limit to 1-2 samples per visit (prevents "sample collecting")

❌ Don't: Give samples of everything (devalues products) ❌ Don't: Provide tiny amounts (can't evaluate effectiveness) ❌ Don't: Sample without explaining how to use and why ❌ Don't: Forget to follow up ("How's that serum working for you?")

Sample Follow-Up Template (Text/Email 5-7 Days Later):

"Hi Sarah! How's that peptide serum working for you? I'd love to hear if you're noticing any changes. If you'd like to continue seeing results, I have one set aside for you at the spa. Just let me know! -[Your Name]"

The Display Integration

Your retail display should mirror the treatment experience:

Treatment Room Display:

• Feature products used in treatments on a visible shelf
• Include small shelf talkers: "This is the serum I just used in your facial"
• Make products accessible for clients to touch and smell
• Keep bottles clean and well-presented

Reception/Checkout Area:

• Display today's "featured products" prominently
• Create small vignettes showing complete routines
• Include before/after photos from real clients
• Place impulse items (sheet masks, lip balms) near checkout

Step 4: Train Your Team to Sell (Without Being Pushy)

The difference between a spa that generates 5% retail revenue and one that generates 30% usually comes down to staff confidence and training.

Shift the Mindset from "Selling" to "Prescribing"

Most estheticians resist retail because they feel like pushy salespeople. Reframe the conversation:

❌ Wrong Mindset: "I need to sell products" ✅ Right Mindset: "I'm prescribing solutions to extend treatment results"

When your team understands that recommending products is a professional service (not a sales tactic), their confidence and authenticity increase dramatically.

The Education Investment

Invest in regular product knowledge training:

Monthly Training Topics:

• Deep dive on one ingredient category (e.g., "Everything about peptides")
• Role-playing client objections and recommendations
• New product launches and their ideal clients
• Seasonal skincare adjustments
• Ingredient interactions and layering

Training Format:

• 30-minute team meetings before opening
• Hands-on product testing (everyone uses products themselves)
• Guest speakers from suppliers (we offer this at 4everAlive Labs)
• Create a "product bible" binder with key info

Pro Tip: Staff who use the products themselves are infinitely more confident recommending them. Provide generous staff discounts or product allowances so your team becomes genuine advocates.

Scripting the Recommendation

Create flexible scripts that feel natural but cover essential points:

The 3-Step Recommendation Framework:

Step 1: Identify the Need "I noticed [specific concern] during your treatment today..."

Step 2: Provide the Solution "To address this at home, I recommend [specific product] because [specific benefit]..."

Step 3: Make It Easy "Would you like me to add this to your check-out, or would you prefer to think about it and grab it next time?"

Real Example:

"I noticed some congestion around your nose and chin during your facial today. To keep your pores clear between visits, I recommend our Salicylic Acid Cleanser. It gently exfoliates inside the pores to prevent buildup. Would you like me to add one to your checkout, or would you prefer to start with a sample to try it first?"

Notice:

• Non-pushy language
• Specific to their concern
• Explains the "why"
• Offers choice (purchase or sample)
• Makes client feel in control

Handling Common Objections

Train your team to address objections with empathy and information:

Objection: "I already have products at home."

Response: "That's great! What are you currently using? [Listen] Those products might be working well for you. The difference with this serum is [specific differentiator]. It's specifically formulated to [address concern]. Would you be open to trying a sample to compare?"

Objection: "That's expensive."

Response: "I totally understand—this is an investment. The way I like to think about it is that this serum lasts about 3 months with daily use, which breaks down to about $1 per day. Compare that to the cost of more frequent treatments or the long-term cost of not addressing [concern], and it's actually quite economical. Plus, you're getting professional-grade results at home."

Objection: "I need to think about it."

Response: "Of course! Take your time. I'm going to write down my recommendation on your treatment card so you have it when you're ready. In the meantime, let me give you a sample so you can try it at home. If you love it, just call or text me and I can have one ready for pickup."

Objection: "I'll just buy it online."

Response: "I appreciate you being honest! A few things to consider: when you purchase here, you're getting products stored properly in a professional environment, you have my ongoing support to answer questions, and I can help you adjust your routine as your skin changes. Plus, counterfeit products are a real issue online. That said, if price is the concern, I can offer you [discount/loyalty program] to make it more comparable."

Creating Accountability Without Pressure

Track retail performance, but don't create a commission-heavy culture that makes staff pushy:

Balanced Incentive Structure:

Option 1: Team-Based Goals

• Set monthly spa-wide retail goals
• When achieved, entire team gets bonus or reward
• Creates collaborative culture, not competitive

Option 2: Modest Individual Commissions

• 5-10% commission on retail sales
• Enough to incentivize, not enough to create pressure
• Emphasize that commissions are a bonus, not primary income

Option 3: Tiered Recognition

• Bronze/Silver/Gold levels based on monthly retail performance
• Non-monetary perks (best schedule, first pick of new products, featured on social media)
• Public recognition without financial pressure

What to Track:

• Retail conversion rate (% of clients who purchase)
• Average retail transaction value
• Most popular products
• Repurchase rate
• Client feedback on recommendations

Important: Never track individual staff numbers publicly or create competitive pressure that compromises client experience.

Step 5: Design Your Retail Space for Success

Your physical retail environment significantly impacts sales. Strategic design can increase conversions by 30-50%.

The Psychology of Retail Display

Key Principles:

1. The "Touch and Test" Factor

• Remove barriers between clients and products
• Provide testers for textures and scents
• Allow clients to hold products
• Studies show clients are 60% more likely to buy what they touch

2. Lighting Matters

• Well-lit displays make products look premium
• Avoid harsh fluorescents (make products look clinical)
• Warm, focused lighting creates luxury feel
• Consider LED accent lighting for hero products

3. Organization by Concern vs. Category

• Instead of "All Serums" → "Anti-Aging Solutions" or "Acne & Oil Control"
• Clients think in problems, not product types
• Makes selection easier and less overwhelming

4. The Power of 3

• Display products in groups of 3 (feels complete but not overwhelming)
• Create morning routine, evening routine, and weekly treatment vignettes
• Price points in 3 tiers (good/better/best)

Retail Zone Design

Zone 1: High-Impact Entry Display

• Place 3-5 hero products immediately visible upon entering
• Feature seasonal items or new launches
• Include compelling signage: "As Featured in Your Facial Today"
• This is prime real estate—choose carefully

Zone 2: Treatment Room Display

• Smaller, curated selection of products used in that room's treatments
• Clean, organized shelf within client's view
• Products should be the same ones you're applying
• Include small card: "Ask me about the products I'm using today"

Zone 3: Reception/Checkout Area

• Full retail display with complete product range
• Organized by skin concern or routine type
• Include add-on impulse items near register
• Comfortable browsing space (not cramped)

Zone 4: Waiting Area

• Coffee table display with product brochures
• Before/after photos featuring the products
• Client testimonials
• QR codes linking to product info or reviews

Merchandising Best Practices

Create Routines, Not Chaos:

Instead of random product placement, create visual routines:

MORNING GLOW ROUTINEStep 1: Gentle Gel Cleanser [$32]Step 2: Vitamin C Serum [$68]Step 3: Lightweight Day Cream with SPF [$45]COMPLETE ROUTINE: $145 ($155 value)

This makes decision-making easy and increases average transaction value.

Use Shelf Talkers and Signage:

Professional, branded signage guides purchases:

• "BEST SELLER"
• "STAFF FAVORITE"
• "PERFECT FOR: Dry, Sensitive Skin"
• "NEW: Advanced Peptide Formula"
• "AS SEEN IN VOGUE"

Leverage Social Proof:

• Display framed client testimonials
• Create a "Wall of Love" with social media posts
• Include professional endorsements
• Show before/after photos with products used

Keep It Fresh:

• Rotate displays monthly
• Highlight seasonal products
• Feature one "Product of the Month"
• Update signage regularly to create sense of newness

Digital Integration

QR Codes:

• Link to ingredient education
• Video tutorials on application
• Client reviews
• Online ordering for out-of-stock items

Social Media Integration:

• Instagram-worthy display backgrounds
• Encourage clients to post with branded hashtag
• Repost client product photos
• Feature products in your stories/reels

Online Shopping Option:

• Allow clients to order online for pickup
• Send cart reminders for abandoned products
• Email replenishment reminders based on purchase date
• Offer online-only bundles or subscriptions

Step 6: Build Retail Into Your Service Protocols

The most successful spas don't treat retail as separate from services—they integrate retail seamlessly into every client touchpoint.

The Pre-Appointment Touch

Confirmation Email/Text Integration:

"Hi Sarah! Looking forward to seeing you tomorrow at 2pm for your HydraFacial. As a reminder, we're currently featuring our Multi-Peptide Serum this month—I think it would be perfect for your skin goals. I'll have a sample ready for you to try! See you soon."

Benefits:

• Plants the seed before they arrive
• Feels personalized and thoughtful
• Sets expectation that product recommendations are part of the experience
• No pressure, just advance notice

During the Treatment

Strategic Product Narration:

Don't just apply products silently. Narrate what you're using and why:

"Now I'm applying our Hyaluronic Acid Serum. You'll feel an instant plumping sensation—that's the hyaluronic acid pulling moisture into your skin. This is such a game-changer for dehydration and fine lines. Do you notice how it feels?"

Client participation makes them invested in the product.

The Mid-Treatment Check-In:

"How's your skin feeling so far? Notice how hydrated and plump it feels? That's the serum working. Imagine maintaining this every day at home..."

Post-Treatment Protocol

The Personalized Routine Card:

Before checkout, create a customized routine card:

• Handwritten feels more personal than printed
• Specific products with prices
• Application instructions
• "Next appointment" recommendation

The Mirror Moment:

After the treatment, show them their results in the mirror while holding the key products you used:

"Look at that glow! This is what [Product Name] does. Your skin is going to look amazing for the next few days, but to maintain this, you'll want to use [specific recommendation] at home. Should I add it to your checkout?"

The No-Pressure Offer:

Always give clients an easy out:

"No pressure at all! I know you might want to think about it. I'm going to include a sample in your bag so you can try it at home. If you love it, just text me and I'll have it ready for next time."

The Post-Appointment Follow-Up

24-48 Hour Check-In (Text or Email):

"Hi Sarah! How's your skin feeling after yesterday's facial? I hope you're still glowing! ✨ If you decide you'd like to take home that peptide serum we talked about, I have one set aside for you. Just let me know!"

2-Week Product Reminder:

If they took a sample:

"Hi Sarah! It's been about 2 weeks since your facial—how did you like that serum sample? I'm curious if you noticed any changes in your skin. If you'd like to continue, I can have a full size ready for you!"

3-Week Replenishment Reminder:

For clients who purchased:

"Hi Sarah! Hope you're loving that peptide serum! You're probably about halfway through by now. Just a heads up that we have plenty in stock if you'd like to grab your next bottle at your upcoming appointment (or we can ship it to you!)"

Step 7: Track, Analyze, and Optimize

What gets measured gets improved. Track these key metrics to continuously optimize your retail program:

Essential Retail Metrics

1. Retail Conversion Rate
2. (Number of Clients Who Purchased) ÷ (Total Number of Clients) × 100

Industry Benchmarks:

• Below 15%: Needs significant improvement
• 15-25%: Average performance
• 25-35%: Good performance
• 35%+: Excellent performance

2. Average Retail Transaction Value

Total Retail Revenue ÷ Number of Retail Transactions

Goals:

• Aim for $60-100 average transaction
• Track whether it's increasing over time
• Higher averages indicate effective upselling/bundling

3. Retail as % of Total Revenue

Retail Revenue ÷ Total Revenue × 100

Industry Benchmarks:

• 5-10%: Underperforming
• 15-20%: Average
• 25-30%: Good
• 30-40%: Excellent

4. Product Velocity (Turnover Rate)

Units Sold ÷ Average Inventory × Number of Days

Tells you which products move quickly vs. sit on shelves:

• Fast movers: Reorder frequently, feature prominently
• Slow movers: Discontinue or clearance

5. Client Repurchase Rate

(Number of Clients Who Made 2+ Retail Purchases) ÷ (Total Clients Who Made 1+ Purchase) × 100

Goal: 40%+ repurchase rate

• Low repurchase rate indicates wrong products or poor results
• High rate indicates products deliver on promises

Monthly Retail Review

Conduct a 30-minute monthly review:

Questions to Ask:

1. Which products sold best? Why?
2. Which products didn't sell? Why not?
3. What was our conversion rate? Up or down from last month?
4. What feedback did we hear from clients?
5. Are we low on any stock? Need to reorder?
6. Any seasonal adjustments needed?
7. What can we do differently next month?