It’s Easier (And More Profitable) Than You Think!

roviding a retail offering for clients can go a long way in elevating the customer experience. In 2023, fifty-one percent of consumers purchased retail items at a service business with 80% of customers wanting an expanded offering from the businesses they frequent. Pet service businesses play a critical role in meeting the retail needs of their clients, and groomers, specifically, have high touchpoints and trust with pet parents and are often asked for product recommendations. This provides a huge opportunity for groomers to not only recommend, but to also sell products.

For most groomers, diving into retail can be daunting. Luckily, new retail methods and technology platforms are making their way into the pet industry, giving groomers more opportunities to participate in the $37 billion pet retail industry.

Traditional retail is the most ubiquitous and oldest form of retail. A business purchases products upfront at wholesale prices and sells at retail prices, yielding profit margins of around 50%. If you have a physical location, creating a retail section allows pet parents to touch and feel products and purchase immediately for that instant gratification.

Incorporating a retail presence can transform your business, but only if it’s maintained properly and well stocked with products. If there isn’t a dedicated person handling merchandising, the retail section can quickly become an eyesore and an unappealing place for your clients to shop.

Traditional retail is also capital intensive, requiring substantial upfront investment of inventory. It can also be difficult to predict what your clients will purchase—order too much and your capital is tied up in inventory; order too little and you lose sales opportunities. There are so many variables that affect a retail business, which is why most groomers don’t have a retail component in their business. The good news is that we’re starting to see other retail models beyond traditional retail that will make it easier for groomers to sell products.

Pet brands are looking for ways to engage groomers and they’re starting to create programs that enable pet services to easily sell their products. One popular model is affiliate marketing, where brand suppliers allow individuals or businesses to promote and sell their products in exchange for commission. This model is common with influencers and content creators, but some pet brands are now extending it to pet service businesses like groomers and trainers.

How it works is the brand provides the affiliate with a unique affiliate link that drives customers to the brand’s website, and the affiliate then earns a commission each time someone makes a purchase through the unique affiliate link. The affiliate model creates a “hands-free” way for groomers to earn a commission on product sales; however, there are a few drawbacks with this model…

The first is that these affiliate links often “break,” which means someone may click on your link, but if they do not make a purchase immediately, the affiliate may not make commission off the sale. Additionally, the affiliate links are associated with a brand’s specific website, which can be inconvenient if the client wants to purchase products across multiple brands. It’s also difficult to recommend a specific product because the affiliate link takes the client to the brand’s homepage where the client may need to find the specific product that you’re recommending. Though the affiliate marketing model can be convenient, it may not work for every business.

Another model that brands are introducing is drop-shipping. Drop-shipping is a fulfillment method where instead of keeping stock yourself, brand suppliers directly ship products to customers. Drop-shipping has taken on many forms over the years and has been around since the start of eCommerce. In the past, drop-shipping platforms required businesses to integrate with another platform that provides the online storefront functionality. There are newer platforms that allow you to build an online storefront and provide drop-shipping functionality all in one.

What’s great about this model is that you can create your own online shopping experience without having to purchase inventory or handle shipping. This means sidestepping the hassle of stocking inventory, packing orders and managing shipments. For groomers, it allows you to concentrate on your core service offerings without the burden of handling physical products. Not every drop-shipping platform is focused on the pet industry, so you’ll want to find one that is dedicated to the pet market to ensure you have the right brands to partner with.

If you are ready to incorporate retail into your business, consider the following to create a retail experience that matches the top-notch service you provide:

• Make it easy to shop. Creating a seamless shopping experience for your clients will go a long way to driving repeat purchases. Make sure you’re using the right platforms and tools to make purchasing from you easy and convenient.
• Keep it fresh. You have an opportunity to introduce clients to new pet brands beyond what they can find in your typical box store. Change up your product offering to keep it fresh and exciting for your clients.
• Get the word out. Whether it’s an online or physical storefront, make sure to announce it to your clients. Put up signs, post on social media or send out email campaigns on a regular basis.
• Educate your staff. If you have a team or staff, make sure they know about the products that you offer. They interact with clients every day and can make organic product recommendations and sales.
• Partner with brands. Reach out to pet brands on trunk shows or pop-ups. Most brands would offer a discount for your clients and an in-person event can engage your clients in new ways.

Adding retail into your grooming business will not only generate additional revenue, but can also create an elevated and engaging experience for your clients.

Michelle Huie is the founder and CEO of ShopDot Pet, the first retail solution to help pet service businesses sell products without the hassle of inventory or shipping. Michelle is a second-time founder and her first company, VIM & VIGR, was featured on INC’s fastest growing private companies and best places to work lists. She has deep operational expertise in eCommerce, retail operations, and manufacturing. Michelle earned a BA from the University of Chicago in Economics and an MBA from the Kellogg Northwestern School of Management. She has been featured on Forbes, Entrepreneur, INC, Thrive Global, and CNN.