Wes Pawlowski – managing director and owner of National Salon Supplies discusses the company's decision to open 40 stores Australia wide.
Given the state of the world’s economy, why have you decided to start such an ambitious undertaking now?
It is precisely because of the world economy and its impact on Australia that I have decided to embark on this path. The backbone of the Australian economy has shifted from the farming sector to the mining and resources sector. Backed by the growth of the Chinese economy, Australia has managed to avoid the worst of the global financial crisis. Today, the domestic workplace is moving away from full time positions in retail and manufacturing and moving towards casual or self-employed positions in the services sector. Regional growth, due to the mining boom, is strong and with an increase in disposable income, the regional centres of Australia will show an increase in the need for beauty industry services. I intend to open our stores in every major regional centre to service that growth.
Aren’t there enough suppliers to the trade? Some might say we have too many suppliers.
Recent years have seen a huge increase in the number of wholesale suppliers in the beauty industry. Many are just looking at making a wage, some are interested in new online opportunities and some are seriously interested in servicing the industry. I believe that the current generation of suppliers have lost their way when dealing with salons and staff. I believe we will address this issue with the enhanced national coverage, our additional stores will provide.
When you say “lost their way”, what do you mean?
Twenty years ago, a supplier had to promote and support the products they sold. The emphasis was on education and knowledge. Sadly, this is not what is happening today. Many suppliers just “cherry pick” the best products and sell them at the lowest price. Today’s supplier looks more like a supermarket with checkout clerks selling products. Beauty Industry Suppliers have forgotten what their role was meant to be. At National Salon Supplies, every member of staff is a beauty professional and their role is to educate customers in which products serve them best.
Would you say that service has suffered as well?
The number one complaint we receive about suppliers is their total lack of service. Incredibly, some of the largest suppliers have the worst record for civility and customer service. National Salon Supplies' company policy revolves around satisfying our customers. That is why we are expanding our operation. The regional centres of Australia have been sorely neglected and we wish to remedy that.
What are you offering these regional centres?
When we open a store in a regional area, it will be fully stocked with every item we carry. This means that over 7000 items will be available. The salons in regional centres will then be able to choose first-hand, the brands, colours, furniture and equipment that they usually only see in catalogues or online. Every store will be managed by trained industry professionals and these people will have access to other experienced professionals who can provide instant support for any problem.
Will you only concentrate on regional centres?
No, our expansion plans cover all capital cities. I intend to provide the same high quality, professional service to our city customers also.
Your existing distribution does not carry hair products. Will that change?
We have concentrated our efforts over the last 20 years in the beauty industry. This has been very successful for us and we will continue to listen to our customers and decide on what best suits our new customer base. If there is a pressing need for quality hair product distribution then we will have to consider it.
Will this mean that prices will go up?
No not at all. In fact, National Salon Supplies guarantees to have the lowest prices in Australia. Any accredited professional (or endorsed student) can buy from us. Compared with other suppliers, we are consistently 15 – 20 per cent cheaper on many items. For those that want to join our Loyalty Club, the prices are further reduced by 5 per cent and up to 60 per cent off the normal wholesale price. Our price match guarantee means that no one pays more when they shop at National Salon Supplies.
Why are you opening more stores when more salons are buying their stock online?
We already have the most successful online supply website in Australia. Therefore we recognise that customers in regional centres are the most likely to purchase stock online. This is because these customers do not have access to a large range of products locally and have been forced to buy outside their local area. I believe a strong local store presence backed by an intuitive and comprehensive online website is where our future resides.
How have the importers and manufacturers taken to this expansion?
Almost everyone we buy from has fully endorsed our comprehensive plan to promote their products into every corner of Australia. This has been seen as an opportunity to re-acquaint many customers with products that they have lost contact with over the years. Working together with our importers and manufacturers, I expect that we will see an improvement in salon product knowledge and working procedures, by bringing workshops back into the regional centre. Salons in all areas will finally have the opportunity to view and experience an extensive range of products including Mancine, Adam & Eve, Summertan, Vani-T, Black Magic, NSI, Nat, Belava, Dadi’ Oil, Essie, Zoya, Fumelok, Krush, Proof, Salt City Candles, our quality “B” Product Range and hundreds of other brands.
When will you start and how long will this process take?
We have already started. Two stores will open in Victoria shortly with more to follow later this year. NSW stores will commence in 6 months with the total roll-out to be accomplished in 3 – 5 years. We have existing stores in Adelaide and Brisbane and these will become part of our total network.
How will you manage this expansion?
National Salon Supplies has a long history of success. We have documented our internal systems and culture and produced a model that is able to be franchised. This is what we will use to grow our business. We will have a master franchisee in each state and these will be responsible for managing all the franchisees in their state. I will continue to run the company in its restructured form and ensure that the great relationship we have with our customers continues on into our new stores.
Can anyone become a franchisee?
If you have industry knowledge and want to service customers, then we encourage you to make enquiries. We offer exciting business opportunities backed by intensive business training as well as ongoing support and education.
Visit our website www.nationalsalonsupplies.com.au or email franchise@nationalsalonsupplies.com.au to find out more.