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New Top Brand Salon Hair Products - A Second Appearance From Out

The salon industry has been one of the hardest hit by the "Great Recession" that started taking its toll during the end of 2008 and continues today. Some markets have lost up to one half of their salon and spa businesses to closure, bankruptcy or both.

With a closure, the inventory of salon hair products maintained by the owner is sold at wholesale or below wholesale prices just to recover some of their investment. In bankruptcy, the inventory many times is taken over by debtors, stored and then sold at a fraction of the original cost to the salon. This is part of the capital recovery process used by banks and financiers of small business loans.

With all of this, there is a business model gaining wide popularity in the United States. This model includes the following steps:

Identify a market or markets to track the salons closing their doors and or going into bankruptcy.

Network with salon owners in the chosen area or areas. Let them know there is an avenue available in the worst case, for them to quickly sale their inventory for cash. For instances that are not worst case, there are avenues available for clearing out items that haven't sold and are increasing their inventory cost.

Network with debtors in the chosen area or areas. Let them know there is an outlet available for any inventory from bankrupt salon businesses. You will in many cases, buy the whole inventory and pay in cash or certified check.

Whether salon purchased or debtor purchased, negotiate to a point under wholesale cost, that the items may be sold over the internet at near wholesale prices and cover business overhead and make a small profit.

Make sure all of the products are top brand and new.

This sounds like a model that preys on salons going out of business. The positive focus is that it allows the salons or debtors to recover more of their investment than they would on eBay or Craigslist with much less effort on their part.

The "Great Recession" has hit all the salons, up-scale or those discount salons working on volume. What that means is that in most markets, all top brand salon hair products are available, including Bumble and Bumble, Kerastase, Redken, Pureology, Onesta, Bonacure, OSiS, Nectar of the Gods, and more.

From the internet buyer perspective, this business model offers an opportunity to purchase new, top brand products at prices previously not affordable.

It becomes one of the few positive aspects coming out of the frequent closure or bankruptcy of salons in today's economy.