|
Diversion occurs when products are sold outside of these intended channels of distribution, such as local super markets and drugstore chains. This degrades the professionalism and credibility of salon exclusive products and negatively affects the salon industry as a whole, both ethically and financially. We have all heard the stories: A truck containing professional products was stolen, pallets of professional beauty supplies were stolen off a loading dock or a group of salons (the underground stylist mafia) have conspired to collect professional beauty supplies for re-sale to chains such as Targets. Let’s be realistic, if a manufacturer really wanted to Stop Diversion, it would be as simple as requesting a subpoena for Target’s purchasing records and file suit against the company selling the product. And they want you as beauty professionals to believe they (the manufacturer) have nothing to do with diversion…seems like an insult to you and your profession. That’s why it is important to Fight Back and seize to carry these products. By working together…salons and distributors, can send a clear message that we will not believe the lies and want to regain market, by carrying exclusive non-diverted brands. The positive comes from manufacturers who still support the industry, for example, I have been involved in a diversion problem. The manufacturer (to remain nameless) told me; grab a few products off the grocery store shelves. I shipped the products to them. I discovered the manufacturer marks all their products in an invisible way to determine which distributor originally purchased them. This manufacturer simply cut the distributor off who diverted the products. It was that simple. Being in the industry for over ten years, I am committed to offering non-diverted products and represent manufacturers committed to stop diversion. I want to know what you think. Who is really doing this? Do you believe anyone? Am I dead wrong? What can be done to make a difference? Let me know, I will give you a $5.00 credit on your account for a thoughtful response. Steve Ryan |
May 7, 2009
Diversion
22 Comments »
RSS feed for comments on this post. TrackBack URL
I agree
Comment by Ed F — May 8, 2009 @ 9:05 am
THANK YOU!!!!!!!!!!! This is why I am so selective in what products I promote. It would be great to stop all the lies!
Comment by Gloria B — May 12, 2009 @ 3:25 pm
I agree that something needs to be done about it. It not only hurts the salon owner, the employees, but also the client. I would assume that if the product line knew about it and didnt like it that they would step up and take actions. Since that hasnt happened, it leads me to believe that they are ok with it and choose to stay “silent”.
Comment by Tiffany Jergenson — May 12, 2009 @ 3:35 pm
These distributors should be cut off. they are hurting their own best customers
Comment by Theresa — May 12, 2009 @ 3:53 pm
Let’s face it the manufacturer is out to make a buck. Sure there are some distributors out there selling to the chain groceries and pharmacies some of that probably at the behest of the manufacturers. The manufacturer CEO’s make as much from diversion dollars (or more) than they do from in salon sales. Why would they stop it?
These manufacturers have built their fortunes off of the backs of the loyal hairstylists pimping their products for decades. Now that we have bought their line of goods and fallen in love with them & promoted their products they have left us for someone else all the while filling our heads with lies that they are still loyal to us.
It sounds like a sad story about an abusive relationship. The abuser seldom stops. When does the abused say ‘Enough’?
Comment by Ed F. — May 12, 2009 @ 5:00 pm
I have often wondered how they (non-authorized stores) get away with this. I have seen every line imaginable, in some stores. Although, I must say, I have never seen Scruples, thankfully. And in some cases, they charge more than the salon! Losers! Paul Mitchell even carries the disclaimer, that the product is only guaranteed, if sold by professionals, and still you see it on the “store” shelves. Aerial makes us sign contracts, that we will not sell to “stores”, yet there are all their products, on the shelves. I have no control over what our owner (Voni) carries, in our shop, but, I can certainly voice my opinion, as you well know! Have you sent Voni this e-mail? Don’t know her e-mail, but you guys probably do. Will do whatever I can to curb this practice. By the way, Steve, great web site!! Love and kisses— Carol S.
Comment by Carol Szarek — May 12, 2009 @ 5:24 pm
In the past week, Target has run an advertisement in several major markets highlighting
professional haircare by various brands at up to 25% off their original (Target) retail price. Unfortunately, Bumble and bumble was included in this ad. As a result, several websites and blogs have picked up on this. We have contacted several of them and asked them to remove the posts, which they have done.
While some may perceive that these ads show that there is an official, sanctioned relationship between Bumble and bumble and Target, please let me again reassure you that this is not at all the case. As I communicated to you last year, Bumble and bumble has no relationship with Target. We do not sell to them, and the Bumble products they sell have been obtained in the “grey market” through unauthorized resales by legitimate Bumble customers.
As always, our policy regarding diversion is strong; any diversion by a Bumble customer is grounds for immediate termination of the relationship. Protecting Bumble and bumble brand equity is our highest priority. We will continue to fight diversion at all costs and enforce a “zero-tolerance policy,” along with appropriate legal action, against any partner that diverts our merchandise in violation of our Bb. supply agreement. To date, we have ended relationships with over 140 salons as part of our ongoing efforts. Please also know that we have the full support of The Estee Lauder Companies in fighting diversion.
Thank you for your attention, and joining me in the fight against diversion.
Best regards,
Peter Lichtenthal
President, Bumble and bumble.
A letter recieved by CINDY LANDA Estilo Salon
Comment by admin — May 12, 2009 @ 5:37 pm
I find it hard to beleive that this manufacturer is ‘helpless’ at getting their product off of the shelves at Targets around the nation. Not to mention that that ‘grey market’ must have a lot of dollars if they can afford to buy enough product to stock every single Target store (Target stores do not purchase individual quantities for local stores).
Comment by Ed F. — May 12, 2009 @ 6:27 pm
I have been in the business for 35 years. I couldn’t believe my eyes when I started seeing supposedly professional products being sold at ShopKo, Target, and probably many other stores I haven’t noticed. I have had many questions from clients about this matter. As one other blog stated, the chain stores quite often get more for the product than the salon does. I have told clients this but I believe it is a matter of convenience for them. I don’t know when diversification started but it is horrible to undermine the stylists and salons who have been faithful to them for years.
I would love to use more Scruples products, which I don’t believe I have seen at the chains, but the only distributor we have in this area gets so much for shipping and handling, with no other options but to buy $200 worth of product before you get a break on shipping. I work in a very small salon that can’t always afford to buy that much product at once, nor can my clientelle afford to pay the jacked up price I have to mark things to defray shipping costs.
Comment by Lu — May 12, 2009 @ 7:12 pm
I agree with number 5.
Comment by Laura — May 12, 2009 @ 8:25 pm
I totally agree. It makes me sooo mad when a client comes in and is like “oh by the way, got this on sale at target” and I’m like where?…Stores like Target, ShopKo, etc. should be taken to court, they are basically taking money out of our (cosmetologist’s) hands!!!
Comment by Kaity B, — May 12, 2009 @ 8:26 pm
I have been fighting this my whole career-always sending in commment etc. it never seems to help-don’t understand wish we could finally put an end to it -it’s very degrading to tell clients we as salon owners sell the professional products and they come back with I saw it at target etc.
Comment by Sherry Stormo — May 12, 2009 @ 9:18 pm
I have personally bought a professional product from ShopKo and it was horrible. It seemed watered down or diluted somehow so I’m pretty sure it was really old. I tell my clients my products are guaranteed and that the price isn’t much different from that of the discount stores. I agree that something needs to be done because it does take money out of our pockets. Let me know what I can do and I will do it!
Comment by Ravan Beaber — May 12, 2009 @ 9:47 pm
Response to 9. Lu, we do the best we can to reduce shipping costs. In many cases if you purchase more then $200.00 you will receive upto %60 off your shipping costs. In addition, Scruples has amazing discounts every two months. Click this link http://www.realhair.net/e-flip_mar/basic-xml/. Maybe if you committed more of your purchasing to us you could hit that 200.00 dollar mark to receive discounts.
thanks Lu,
Steve Ryan
Comment by admin — May 13, 2009 @ 10:58 am
I hate it. Who buys product from Target!!!! It is professional product treat as such….
Comment by Susanne Bunting — May 13, 2009 @ 11:57 am
Until the distributors stand up to the manufacturers, I don’t think that much of anything will be done about this problem. If ALL distributors would come together and refuse to buy from manufacturers that repeatedly do nothing to protect their product from chain stores then that would really make a statement. Anything short of that scenario will fall short of any real impact.
Comment by Julie D. — May 13, 2009 @ 12:03 pm
I believe this problem of diversion will never stop. I notified one of the distributors when I saw ’salon only’ brands that they distribute to me on the shelves at a Pamida store. The representative from the distributor seemed uninterested and told me there was nothing that could be done. I concur with the earlier opinion that the diversion is from the manufacturers wanting to make more money. I don’t feel very supported by any of the manufacturers. Another problem that I feel is similar to diversion is the salons who may have one or two stylists abailable one or two days a week but they have a bigger percentage of their salon square footage covered with every product imaginable. I have never liked that, it’s just a way for someone to beat the system. I would like to say however that I have felt that my loyalty to Avant Garde has been reciprocated. I feel like my business matters to them, and I am thankful that I’ve not seen any of the products they offer on any grocery/department store shelves. I have also bee blessed with free valuable education through Affinage/Infinty, and Steve and Scott make that possible. Thanks for caring about those of us who are standing behind the chairs.
Comment by Sandy — May 14, 2009 @ 7:47 am
I AGREE SOMETHING NEEDS TO BE DONE. WHERE DO WE START TO GET THIS PROBLEM UNDER CONTROL. THANKS FOR TAKING THE TIME TO INVESTIGATE THE PROBLEM FOR THE HAIRDRESSER OF THE NATION. THANKS DENISE
Comment by DENISE MCCLISH — May 14, 2009 @ 10:25 pm
I hate that the manufactures have let this happen, and yes, I do beleive they know it, or they wouldn’t have totals on how much they make on diversity all the time.
I used to be mad at them, now i just don’t trust them. Very sad, they were the people we trusted years ago.
Comment by Karen — May 15, 2009 @ 10:07 am
i think our problems began when years ago everyone was worried about paul mitchell and the direction that company was going after he died. well, gillette never bought them, and after every sales rep trashed paul mitchell tbut atl their products started to get diverted. i don
t know when this madness will end but good thing there are a lot of undiverted companies available
Comment by tim wacker — May 17, 2009 @ 8:06 pm
I do not belive for a minute that diversion is the method that professional products find their way to retailers such as target and hy-Vee ect. These are sold for profit. End of story, in my opinion. I do not find Aquage or tri products on these shelves.
Comment by bev belieu — May 17, 2009 @ 10:09 pm
I used to have to deal with this as I used to work for a distributor! I really got tired of going in buying it and seeing it show up again .Then I realized every place I had found my product these companys had salons in them (not in my town ) but somewhere like target, walmarts ,just to name two big places….I often wondered if they bought large quantities under salon code??and diverted it themselves ? It just seemed endless and alot of old packageing? Made me curious!!I Have never seen Tri products in my area before and I look to see what products are here !
Comment by Gina Wright — May 25, 2009 @ 7:53 pm