INVENTORY: How Much, Which Brands and Why!
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How Much, Which Brands and Why!
By Summit Salon Consultant, Patrick Seaton
Inventory is a salon company’s SECOND HIGHEST EXPENSE!
That is why it is so important to make sure that you are choosing the RIGHT brands and mix of products to support your guest experience and services.
It is also very important to make sure you have the right product lines for your PRICE POINT.
What you don’t want to do is tie up valuable real estate with products that will just collect dust!
The product lines best for YOUR salon are the ones that pair together. Most professional color brands have a retail line made specifically to support each other. A salon should not carry more than ONE professional color brand and THREE retail lines.
Price Point
The retail price point should be tied into the level pricing that you offer for services. Is the price point too high or too low for YOUR salons demographics?
Inventory
The right amount of inventory to carry on hand in your company is based on 2 x (one month of retail sales).
For example:
If you sell $5,000/month in retail. Then you should have $10,000 worth of inventory on hand.
You also want to make sure that you have your TOP TEN BEST SELLERS stocked, so you have the inventory on hand to match their demand.
Brand Loyalty
Brand loyalty is VERY important because when you’re loyal to both color and retail – you can benefit from the reward programs and in salon education that the manufacturer offers!
For example:
L’Oréal professional’s Level Loyalty Reward program where every purchase you make earns you points. The more you spend, the more points you earn. Points can be redeemed at any time for products that enhance your clients` experience, or for classes and events that grow your business.
Top 3 Tips for Inventory Success
- Maintain correct inventory levels so you don’t lose the opportunities with your guests.
- Support the brands that compliment your price point so you can meet your demographic needs.
- Maintain brand loyalty so you can earn the benefits to support the GROWTH of your salon company!
What do YOU think about brand loyalty and inventory levels?
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