Slow season is coming to an end (only two more letters in JASON left to go). Of course you’re excited, but are you actually ready for busy season to get underway? In case you aren’t reading between the lines, what we’re really asking is: Do you have your 2009 inventory in order?
“Inventory” refers to two things: first, the tangible merchandise a salon has on-hand, and second, the act of counting, itemizing and recording all transactions relating to that in-stock merchandise. Your salon inventory can be interpreted in two ways: On one hand, it is an asset on the balance sheet (because you can turn it into cash by selling it); on the other hand, it ties up money that could be used for other purposes and requires additional expense for its protection. However you look at it, a carefully planned and well-managed inventory is a necessity.
The first thing you need to think about is what you would like your inventory to include in 2009. Most manufacturers have debuted their new products by now. So, the first order of business is to decide which of those new products you want to bring into the salon. Simultaneously, you will need to figure out what products you currently carry that you want to continue to retail versus what you want to take out of the equation altogether. One thing to keep in mind is balance—you should have a good selection of retail merchandise, especially in regard to lotions. The best way to appeal to all clients is to offer a range of beginner formulations, advanced formulations, bronzers and tingles in bottles as well as packettes.
Ordering
The next question you need to ask yourself is how much of each product you plan to stock. This can be more complicated than it seems—it depends on a number of factors, including the size of your salon, the type and number of tanning and spa-related units you have, your customer demographics and your level of business.
In general, the worst thing you can do is under-stock. Running out of a product will not only cause you frustration, but also can hurt your client relationships. To avoid this, you must have a good idea of anticipating how much business your salon will receive each month. Try looking at last year’s receipts to see what sold, how much of it sold and if the sale of certain items increased or decreased during a particular month or time of year.
Beyond the frustration of running out of an item, having only a small stock of a particular product on your shelves can have a negative effect on sales. Customers tend to associate a well-stocked display with a top-selling product: You have a lot of it, so it must be popular, right? Use that concept to your advantage and make sure your displays are full—you can even tell clients you “stocked up” because you’re afraid of running out of this hot item.
At the same time, however, you don’t want to order more product than you can reasonably expect to sell. That simply ties up funds that could be better used to pay bills—an important factor in today’s economy. This is especially important to remember in regard to retail items such as clothing and accessories because what’s in fashion now may not last. For example, if you decide to offer swimwear but overestimate how well it will sell, you can get stuck with excess inventory that will be so-last-season by the time summer 2010 rolls around.
