Saving up to 25% of Product Costs
Salon management sounds intimidating and complicated to some people, but we assure you it isn’t bad. One of the most important aspects in effectively managing your salon is proper inventory management. Most salons can develop a full inventory history and plan of action in a day or two. Here are four simple steps to get you started that can save you up to 25% on product costs.
1) Know how much of each product you use each month and see if there are seasonal trends. Yes, this part will be work, but you only have to do it once to start seeing rewards. Knowing how much of each product type you go through and when, will give you the tools you need for the rest of this advice.
- One easy way to do this is looking at last year’s orders and simply put them in an excel file by month and product. Once everything is written down, look for trends.
- For extra credit, do this for several years worth of orders to really get an idea of what you need.
- If you use an accountant, odds are pretty good they can get you the information I listed above without you having to do the work!
2) Order larger shipments less often. You can save up to 25% of your product cost if you have bigger orders and ship less often. Wholesalers (like us) have to do nearly the same amount of work for a small order as a large one. This is why there are price cuts for larger order. Take advantage of the savings larger orders offer you. A side benefit of larger orders is less work on your end! You will have what you need when you need it instead of spending so much time making small orders. How is that for a business win? Save money and spend less time working!
3) Salon management requires organization, so store your products correctly. With larger orders (or even small ones) you need to make sure your products are stored in cool, dry places out of direct sunlight. If you store them correctly, having up to 6 months of supplies shipped to you is reasonable because they will keep. You might be surprised how much money you spend on products that end up being tossed. Or worse, if you are using a compromised product on a client, reducing the quality of your work and quite possibly hurting your reputation. If you want advice on how to store specific products, ask us at Info@hairextensiontape.com. We are happy to help. After all, we have the most experience storing our products.
4) Once you open a product, use it before opening another one. Air and moisture can be extremely detrimental to products, including most glue. Once a bottle has been opened, you can expect its shelf life to drop significantly.
Salon management done the right way can lead to huge savings on costs, and ultimately, higher revenues for your salon! Information is power, and the information you get from inventory management can be a huge win for your salon.