If you know at certain points of the year you are going to sell more, you can be out ahead of it before the time comes and ensure that you are not over or under ordering.
“Create inventory plans. Finally, by managing re-order points, salon owners will be able to identify hot sellers and slow movers and then create plans to boost levels for those hot sellers and shift their purchasing patterns for their slow movers. This brings up a nal point of emphasis. In my experience as a business coach, I have seen many instances where salon owners drop a product line in favor of another product line. Usually this happens based upon an emotional reaction to either lack of sales with the line or pressure from their team to get a new line. Ultimately, the best advice I can give with regard to knowing when you should drop a line is based upon the above research.
As you monitor your minimums and maximums and see shifting sales trends in a negative direction for a line, the most important things to do is to not react. At this point it is time to do more research. Get your team and your sales consultants involved. Find out from their perspective what is happening with the line. Poor sales could be occurring due to lack of education, marketing or product display and placement. Find out what the issue is and take action to rectify it, and give it a month or two to see if there is turnaround. If there is not, then you can begin to take the steps to drop the line in favor of a new line or take the purchasing budget of this line and move into the existing lines you have and ramp them up. Overall, healthy returns and more pro t will come when you review and analyze your inventory, accurately track it and consistently act upon the information you see.”
For more information and consulting from Milady, visit milady.cengage.com or call 800-988-7478, Ext. 2700.