Why Now is the Time to Take Stock of Your Salon Business
We’re more than halfway through 2022, making now the perfect time to pause and focus on the inner workings of your salon business. From inventory management to year over year financials, here’s why investing in your business now will pay off later.
Inventory Management to Increase Profits
There is a right way to build your product inventory and boost your retail sales by changing how you approach this area of your business in your salon. And the key to effective (and profitable) retail sales is all in how you manage what you keep on your shelves. Mid-year is a great time to look at your inventory (from best-sellers to seasonal items), and then stock up accordingly. One of the best ways to start is to continuously stock up on products you know you can sell to everyone. Always have 2-3 on the shelf and then increase your quantities as you determine what your top sellers are. The goal is to never get down to one of anything, but also manage your quantities—as more inventory doesn’t always lead to more sales.
Plan for the Holidays
It might feel early to start getting into the holiday spirit, but if you are looking to maximize those holiday sales, now is the time to plan. Self-care is here to stay, with 92% of people believing self-care makes a difference in their overall well-being which creates a huge opportunity for salon owners. Do you have the right products on hand to promote sales? What do you need to carry to drive additional holiday sales? Consider the following ideas to help boost holiday sales in your salon:
- Carry Holiday Gift Sets. Gift sets are the perfect way to potentially expand your customer base. Once someone new tries a professional product, odds are they will return for additional products and services.
- Stock up on your retail inventory and create your own holiday gift baskets based on your client’s needs.
- Hold a Black Friday sale on your retail products.
- Put together gift sets based on skin type and skincare routines.
Keep Your Financials in Check
When you are busy working with clients all day, every day, sometimes the financial side of your business can get left behind. Mid-year is an ideal time to look at services and sales and compare it year-over-year. Some things you can do include getting a handle on your cash flow, analyzing your numbers, evaluating your staff and overhead, and working on your financial plan for the next year. And here’s a pro tip: We recommend setting up an account for your retail sales. Transfer 50% of your sales (daily at first, then weekly) and use this account to purchase your retail products. You might also consider taking some time to evaluate your salon accounting software and ensure your scheduling, banking and POS systems are integrated so you can get the maximum transparency when it comes to your numbers.