How To Run A Successful Salon | Inventory Management

 

  How To Run A Successful Salon

   Inventory Management

 

 So you own a hair replacement salon? Have you crossed all the hurdles and finally fulfilled your dream of having your own business? Are you looking for information on how to run a successful salon? If yes, then this is for you.

 Firstly, Congratulations! You my friend have just fought a great battle and are now at the precipice of competition.

 You might think call me a cynic or a pessimist and argue that the battle up till now was unchartered waters. Now you are on home ground. You know your job. You have great skills, good location, loyal clientele, great network and so on to face any challenge that comes your way with grit. Yes, you may have all that and still not make as much profit as your true potential, as your resources should be generating. Well if it makes you feel any better, some of the most well known, established businesses also face such problems time and again.

 Why? You may ask. Well this is because we concentrate on all the big aspects of running a successful business and forget that it’s the small things that matter just as much, if not more. Avoiding wastage of resources and their optimum utilization may seem like a good idea, but do you really apply it at its core and basic level? Do you pay inventory management the kind of attention it deserves or is it taken for granted?

 I don’t think I need to stress on the fact that the products you use are as vital as the skills you offer to the consumers. You know it too and therefore you bring in the best quality at the best price that you can get. But is this all that needs to be done on this front? Ordering products is not merely filling and refilling your shelves. It’s crucial. Your budget as well as your market depends upon it.

 You should see what products are available, are you really paying for the quality that you are getting or are you paying more? What returns are your investments generating? That does not mean you ration your stocks. Customers come to you looking for a specific hair replacement products and if you don’t cater to them, there are a lot of competitors who will offer them these products and services. So why would the customers not flock to your rivals making these potential, loyal customers write you off completely?

 Economy of scale is an effective tool to lower costs. However bulk buying should be done very very carefully.

 It is extremely crucial to keep the following things in mind:

• Estimate how much product will you need
• Keep some extra stock in case of emergency
• See what the shelf life of the product is. What use is buying a year’s supply of the product when it is highly perishable and has a shelf life of 6 months?
• Research about the new products available in the market
• Carefully study and match the prices of similar products
• Be aware of the prices and the market conditions. Do not be an easy target for suppliers to con you with a higher mark up
• Keep your salon organized. You should know at any given time how much product is on hand and how long will it last. This will help you avoid wastage
• Buying a product in bulk does not mean that you fan your gluttonous fantasy of over indulging in using the product just because you have a stock. Use only as much is required
• Have thorough information about the storage of the products
• If the cost of storing a product is higher than purchasing the product than don’t keep that product in stock. If that product is extremely important than stock it in small quantities
• Manage your storage space well
• Conduct regular inventory and stock analysis

Know Your Options

 Turn your supplier into an asset. Sometimes carrying fewer products or brands can help strengthen working relationships. Advertise and promote the products you stock. Involve your consumers and suppliers in your business. Experiment with new products, Network with suppliers and come up with symbiotic product offers.

 When a product is new, the customers rely upon and trust your judgement. Give them information about the new products available in the market and how they should be used optimally. Provide viable offers and incentives to your customers. Explain to them the benefits of the products you use.

 Sometimes certain products are season specific, meaning they are only needed during a particular season. In cases like these keep your business well stocked for the season. An example of this would be during Winter months. It gets cold… in some locations, VERY COLD! Any type of bonding adhesive is liable to freeze during shipping, completely ruining the product. If your product management is not accurate, you could be at a loss of thousands of dollars. For this reason, it always imperative to plan your Winter stock to ensure you can have it ordered and entered into stock before the cold weather arrives. Remember to place your order in advance and track it. Remember the fact that this product will be in use this season is not a secret only you are privy to. Your competitors have this knowledge too. If you can’t stay a step ahead of your competition then don’t lag behind too.

 If a product is not moving quickly and you think there are chances of wastage than introduce offers and gifts to your customers for that product. Entice your customers. This is a great way to move the product and attract and seduce customers at the same time. For a successful business venture, aim to kill two birds with a single stone.

Training | Efficiency & Reliability

 Provide proper training to your staff with regards to product performance and inventory management. Keep your display windows attractive. Inventory management is a delicate balancing act. Imagine a clown on a unicycle with a stick in both hands with revolving china plates at its tip. It is like that. If you overstock, you put a strain on your budget and risk wastage too and if you stock less you risk losing customers.

 You must know which products are hot, which are slow and which mix of the two would give you the desired results. Maintain a proper chain of command. Don’t end up having two or more of your employees order the same product twice due to enthusiasm and confusion.

 To ensure greater accuracy business owners should conduct regular audits. The audits should be both physical as well of all the records and inventory statements. This will ensure that there are no discrepancies. It will also reduce follies or suspicious activities with regards to stock. This will also ensure that there is no pilferage or damage to the products.

 Make the inventory system strict and transparent. Introduce stock bins. Encourage your employees to be alert with regards to the stock. Treat your employees fairly so that they are less likely to be disgruntled and more likely to look after the products and your bottom line! 

Conclusion

 Manage your expectations well. Some of these changes will show positive results immediately some of these will take time to show the results. But in the long run this will be highly prosperous. Paying attention to these details, will ensure your new or existing venture runs efficiently.

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 If you would like more information on how Pro Hair Labs can help you achieve this balance, please do not hesitate to contact us via the button below. Pro Hair Labs offer unrivalled support and information on all aspects of stock control and inventory management to ensure you not only carrying the products you need, but that your salon always has their finger on the pulse with new cutting edge formulations.