As a salon, knowing when to bring on a new hair product brand is all about keeping track of inventory and knowing how to match that with the customer experience and salon services.
Inventory is one of the most significant expenses for salons, so determining whether to bring on a new brand—or get rid of one—should be done with care.
The perfect number of brands
looks different for each salon, depending on size and customer bases—and it’s not always about money. A general rule of thumb is that a salon should carry no more than three but at least two. Consider the guest experience and the services the salon offers when deciding how many brands to sell in the salon.
Optimizing the Guest Experience
If clients aren’t in tune with brands in the salon, they may go elsewhere to meet their product needs—especially if the product is too expensive for them. Make sure the price point for retail products matches the prices of the services offered in the salon. Offer a few choices
to allow clients to mix and match brands to fit their needs.
Matching Services with Products
Product lines that offer color
and retail are often a smart choice since they pair together nicely—most have ingredients designed to compliment the color line and vice versa. Bringing on brands isn’t always about products, either. Many brands have desirable benefits like education and loyalty programs.
Solving Retail Needs With A Simple Calculation
Stocking too many brands can get expensive in a short amount of time, whether the items are flying off the shelves or not. To gauge how many brands or retail products to carry, measure the speed of sale percentage.
Sales/Cost x 100 = Speed of Sale Percentage
Sales: The total amount of retail products sold for a specific period (usually a week)
Cost: The total cost of the retail stock you’re carrying (To calculate, use the retail prices and ignore discounts you may have received when ordering.)
The formula will give you an overview of which products, brands, and categories sell the fastest—it all depends on what you decide to measure. Set the target percentage at 10%, and try to keep it around there. Any higher and you may need to start ordering more retail. If the salon cannot continually meet that number, consider focusing on that product or brand to get sales moving.
Keep an eye on inventory levels to keep the salon in check, and browse and shop our product lines
at Art of Business.