How Adding a Wig Store Helped Grow My Business

By Keith Zimmerman, Keith's Haircenter and Voga Wigs, Green Bay, Wisconsin

Adding a complementary wig business can pay huge dividends. In 2011 I was looking to do a major remodel to my business. I had a 5,000-square-foot building, of which I was only using 3,000. My thought was to remodel and create a business rental with the extra space.

During the summer of 2011, I was in the Canary Islands as an educator for a hair loss conference. I ran into Les Martin from New Image in the hotel lounge. As we talked about various hair topics, I mentioned the remodeling idea. Les immediately brought up the idea of opening a wig store. He, among other ventures, owned a chain of wig stores throughout Canada. He was adamant about adding a wig store to our already existing hair replacement business.

That day we formulated a business plan. The plan was all written down on cocktail napkins. Having Les’s mentorship, expertise and advice gave me the confidence to start what we now call Voga Wigs & Hair Add-Ons.

Here are Les’s ideas that I wrote down that day:

■ Voga would be a stand-alone boutique. Separate from my original business.

■ Keep a large inventory of wigs and hair additions on hand.

■ Have a variety of price points from machine-made synthetic hair to handtied European hair.

■ Voga would be a unique shopping experience. Clients would be able to look, feel and touch our products.

■ Customization and service would be provided by the staff at Keith’s Haircenter next door.

■ Marketing would be focused on traffic driven from a website and internet advertising. In addition, a store manager would connect with the local hospitals and cancer centers.

■ Become a provider through health insurance companies for medical prosthetics.

■ Hire a manager to run the boutique and network with local health care providers.

Construction started in January 2012. A local interior designer made sure our design and color scheme reflected the clientele to whom I was trying to appeal. Quality mannequins and custom-made display shelves were used to inspire. Everything from furniture to luxurious bags created the ambiance of a high-end boutique.

Finding a store manager who had the drive and motivation proved to be difficult. Voga went through three managers in the first 18 months. Sales were good right from the beginning. However, unless the manager went out and solicited more business at the local cancer centers there was not enough to keep them busy all day.

Eventually, my office manager for Keith’s Haircenter split her duties and became manager for Voga. Then all stylists and office personnel at Keith’s received training to do consultations and sales in Voga. The staff received a commission on all sales. The commission has allowed the staff to significantly increase their wages. It also has helped in recruiting staff at Keith’s Haircenter.

The symmetry of a wig boutique and a full-service hair replacement center worked great together. If someone came into Voga and was more suited for bonding or links, they were referred to Keith’s. When Keith’s Haircenter had someone who was more suited for a wig or clip-on topper, they were referred to Voga Wigs. Keith’s Haircenter benefitted from the service work that Voga sent over.

What I learned after opening:

■ Most sales are women with thinning hair issues. (Not cancer patients.)

■ Billing insurance did not work out.(Wisconsin does not require health insurance to cover a medical prosthetic.)

■ Hiring a full-time manager did not work. (Paying commission to existing employees worked better.)

■ The ability to have clients try on hair is the best sales technique.

■ A wide range of prices stimulates higher-priced items.

Not every part of the original business plan ended up working. Adjustments had to be made to the original business plan. However, the results were even better than expected. Sales revenue has steadily increased each year. In 2013 I opened a second location at Keith’s Haircenter of Appleton. I look forward to the future of Voga and I am grateful for Les’s inspiration.