Managing Your Salon's Resources

For UK salon owners, managing your product inventory is a crucial aspect of running a successful business. With a wide range of products, from backbar essentials to retail items and styling tools, keeping everything organised can seem daunting.

Yet, effective inventory management is key to ensuring smooth operations and maintaining profitability. Here are some strategies to help you keep track of stock, streamline reordering, and avoid the pitfalls of overstocking.

Organise and Label Your Inventory

Start by dividing your inventory into clear categories, such as:

Backbar Supplies: Include disinfectants, cutting creams, and sectioning clips.
Colouring Products: Group together bleaches, developers, and toners.
Styling Tools: Organise brushes, dryers, irons, and accessories.

Organise further by product type and brand, and label everything, especially backbar items with their expiry dates. This makes it easier to find and reorder items as needed.

Establish Par Stock Levels

Identify the optimal base stocking quantities (also called par levels) for each retail product to meet typical demand without carrying extra surplus. Carefully calculate volumes factoring things like:

Usage Rates

Closely track how many units of each product stylist stations go through weekly using inventory software or wall charts. Calculate average usage per week to estimate standard demand requiring consistent availability.

Service Demand

Note if certain products get used disproportionately more with some service types based on clientele and treatment needs.

Reordering Timeframes

Factor in the average time between placing supplier orders and receiving new stock. Products sourced from further destinations or made in small artisan batches may take longer to remake.

Keeping the right amount of stock reduces waste from products going bad and helps your cash flow by not having too much money tied up in extra supplies.

Regular Inventory Reviews

Set a regular schedule for inventory checks, such as monthly, and use a checklist to ensure consistency. Look out for:

Items Nearing Expiry: Use these products promptly to reduce waste.
Low Stock Levels: Reorder products according to your par levels.
Misplaced Items: Ensure everything is stored correctly to maintain product integrity.

Regular checks help identify issues early, allowing for timely solutions.

Analyse Inventory Trends

Keep an eye on changing client preferences and industry trends to adjust your inventory accordingly. Consider:

Popular Products: Increase stock levels of fast-moving items.
New Services: Add inventory to support new offerings.
Underused Items: Evaluate whether it’s beneficial to continue stocking these products.

Adjusting your inventory based on what sells best ensures your salon meets client expectations.

Improve Reordering Processes

Maintaining an efficient reordering process is key to ensuring you always have the right products on hand for your clients. Here’s how to make your reordering process smoother:

Delegate Specific Roles

Assign the task of monitoring stock levels and placing orders to particular team members, such as assistants or managers. This approach ensures consistency and builds expertise within your team, making the process more reliable.

Foster Strong Supplier Relationships

Invest time in developing a good relationship with your suppliers. Understand their production capabilities, delivery logistics, and how quickly they can handle urgent orders. A strong relationship helps in accurately predicting your stock needs and can be invaluable in managing your inventory effectively.

Leverage Technology

Adopt salon-specific inventory management software to gain an instant overview of your stock levels and sales data. These digital tools can automate much of the reordering process, alerting you when stock levels of certain items fall below predetermined thresholds and even placing orders automatically.

By refining these aspects of your reordering process, you can ensure your salon operates smoothly, keeping both your shelves and your clients happy.

Protecting Your Salon with Tailored Insurance

By adopting these inventory management strategies, you’ll enhance your salon’s operational efficiency and profitability. And remember, protecting your business with the right insurance is crucial.

At Salon Saver, we understand the unique challenges UK salon owners face. Our beauty salon insurance policies are designed to protect your business and inventory from risks like theft and damage, ensuring you can focus on what you do best.

Dean Laming

Dean Laming is a Chartered Insurance Broker with more than 25 years insurance experience. Through various underwriting, operational and management roles, Dean has built up extensive knowledge of the hair and beauty sector and is now Managing Director of Salon Saver, part of the wider Henry Seymour Group.

All articles by Dean Laming