You Don't Own a Salon. You Own A Business.
In his latest blog, Leon Alexander Ph.D., challenges industry conventional thinking to help owners add more to their bottom lines.
Salon Today 200: INVENTORY CONTROL
The best way to infuse cash into your business is to get a tighter grip on what you keep in inventory. These ST200 honorees have mastered just-in-time ordering and eliminated the guesswork and waste by using sophisticated inventory systems.
by Salon Today Staff
January 2, 20105 min to read
Appearances Hair Color and Design Studio
Westminster, CO
appearancessalonco.com
Jim and Sondra Thrasher
SQUARE FEET: 1,170
TOTAL EMPLOYEES: 13
SKUs CARRIED: 148
$ IN CURRENT INVENTORY: $26,100
AVERAGE CUT & STYLE: $38
BEST-SELLING RETAIL LINES: Bumble and bumble, Matrix, private label
COLOR LINES: Matrix, Redken
SALON SOFTWARE: Harms/Millennium
ASSOCIATIONS: NCA, PBA
“Our back stock is locked in a cabinet at the back of the salon. At the end of each shift, the front desk is responsible for replenishing each product sold. If we see a product missing that was not sold, I access our surveillance system to ensure theft was not a factor.”
Coiffeteria Salon
East Grand Rapids, MI
coiffeteria.com
Marielle Shuster
SQUARE FEET: 1,300
TOTAL EMPLOYEES: 13
SKUs CARRIED: 438
$ IN CURRENT INVENTORY: $13,000
AVERAGE CUT & STYLE: $45
BEST-SELLING RETAIL LINE: Aveda
COLOR LINE: Aveda
SALON SOFTWARE: SalonBiz
ASSOCIATION: PBA
“We order weekly so it is very easy to monitor and adjust accordingly. We also cross check our order against the weekly retail sales. Our budget is 50 percent of what our retail sales were the previous week.”
Finesse Spa Salon
Ames, IA
finessespasalon.com
Meredith Miller, Andrea Kneifl, Linda Lohman, Dawn Walstrom, Mandy Fjelland and Jenny Veale
SQUARE FEET: 3,200
TOTAL EMPLOYEES: 18
SKUs CARRIED: 600
$ IN CURRENT INVENTORY: $15,000
AVERAGE CUT & STYLE: $29
BESTSELLING RETAIL LINES: Redken, Pureology
COLOR LINE: Redken
SALON SOFTWARE: Envisions
“Our inventory system is based on a six-turn ratio for most products, with a two- or four-turn ratio for some products such as make-up and nail care. This system is based on years of research and business principles learned from KRS Consulting and the Redken Business Summit.”
Hair Technology and Body Salon
Westminster, CO
worldclasssalons.com/hairtechnology
James Pacitico and Cathy Schafer
SQUARE FEET: 3,048
TOTAL EMPLOYEES: 28
SKUs CARRIED: 300
$ IN CURRENT INVENTORY: $34,900
AVERAGE CUT & STYLE: $40
BEST-SELLING RETAIL LINE: Aveda
COLOR LINE: Aveda
SALON SOFTWARE: SalonBlz
“Our management has a bonus opportunity for accurate inventory counts. The management team from our group of salons with the inventory adjustment closest to zero in the month of our full inventory count receives $250 cash.”
Jungle Red Salon
San Francisco, CA
jungleredsf.com
Andrea Cwynar and Scott Mishina
SQUARE FEET: 1,200
TOTAL EMPLOYEES: 5
SKUs CARRIED: 135
$ IN CURRENT INVENTORY: $33,000
AVERAGE CUT & STYLE: $70
BEST-SELLING RETAIL LINES: Bumble and bumble, Kerastase
COLOR LINES: Goldwell. Wella, Redken
ASSOCIATION: Elite
“Our ratio for turning over product is 60:40—with 40 percent being retail that is harder to sell or more seasonal and 60 percent of what we older usually in need of replacement. For the harder to sell items, we try to promote products of the month.”
Ladies and Gentlemen Salon Spa
Mentor, OH
ladiesgentlemen.com
Ed and Nancy Brown
SQUARE FEET: 13,000
TOTAL EMPLOYEES: 250
SKUs CARRIED: 700
$ IN CURRENT INVENTORY: $96,000
AVERAGE CUT & STYLE: $60
BEST-SELLING RETAIL LINE: Aveda
COLOR LINE: Aveda
SALON SOFTWARE: SpaBiz
ASSOCIATIONS: CC, Intercoiffure, I/SPA, NCA, PBA
“We have a staff of five who work in our inventory department. Through our software we generate reports to determine our top-selling products. We have a system for ordering our products based on an average turn of 21 days.”
Life SalonSpa Halifax
Halifax, Nova Scotia
lifesalonspa.com
Peter Lawson
SQUARE FEET: 2,000/3,000 (two locations)
TOTAL EMPLOYEES: 30
SKUs CARRIED: 900
$ IN CURRENT INVENTORY: $43,000
AVERAGE CUT & STYLE: $49
BEST-SELLING RETAIL LINE: Aveda
COLOR LINE: Aveda
SALON SOFTWARE: Milano
ASSOCIATION: Cosmetology Association of Nova Scotia
“To ensure the salon/spa remains stocked on products, a two-week supply is earned of our top 20 items sold per week. This promotes increased retail selling and ensures that we do not have a shortage if our supplier is out of inventory on an item. On average, 80 percent of our retail is turned over monthly.”
The Loft Hair Design
Escondido, CA
thelofthairdesign.com
Shawna Cruise
SQUARE FEET: 2.200
TOTAL EMPLOYEES: 25
SKUs CARRIED: 370
CURRENT INVENTORY: $14,500
AVERAGE CUT & STYLE: $55
BEST-SELLING RETAIL LINES: Bumble and bumble, Aveda
COLOR LINES: Wella, Redken
SALON SOFTWARE: Milano
ASSOCIATIONS: PBA, YBN
“We have integrated several tools to effectively manage our inventory, including our custom budget. Bumble and bumble’s inventory management workbook and different sales reports from our software. As a rule, we have reduced our retail spending by 13 percent, which equates to more than $10,000.”
Savvy Salon and Day Spa
Cornelius, NC
savvysalonanddayspa.com
Pat Helmandollar
SQUARE FEET: 5,200
TOTAL EMPLOYEES: 40
SKUs CARRIED: 1,000
$ IN CURRENT INVENTORY $49,000
AVERAGE CUT & STYLE: $45
BEST-SELLING RETAIL LINES: Kerastase, Bumble and bumble, Aveda
COLOR LINE: Wella
SALON SOFTWARE: SalonBiz
ASSOCIATION: PBA
“We researched our new make-up line very thoroughly over several months, including chatting with other salon owners, surveying sales representatives, sampling dozens of products and searching the internet and professional publications. When we decided we knew instantly we found the right one for our needs.”
Valentino’s Grande Salon
Whitby, Ontario
valentinos.ca
George and Vasile Tsinokas
SQUARE FEET: 6,300
TOTAL EMPLOYEES: 78
SKUs CARRIED: 123
$ IN CURRENT INVENTORY: $28,000
AVERAGE CUT & STYLE: $45
BEST-SELLING RETAIL LINES: L’Oréal, Pureoloay, TIGI
COLOR LINES: L’Oréal, TIGI
SALON SOFTWARE: Harms/Millennium
ASSOCIATIONS: Intercoiffure, PBA, Best Practices Club
“By using sales patterns to determine product turnover, Valentino’s is able to keep the least amount of product in inventory to satisfy customer demand. The amount of stock required is determined by using three-four month averages of product sales.”
“Once a shipment arrives at the salon, all SKUs are entered into our inventory management system before the products are shelved, allowing our just-in-time system to effectively run. Without this extra step, extra product could be ordered unwittingly, causing an unnecessary buildup of product and increasing inventory and storage costs.”
—George and Vasile Tsinokas
Valentino’s Grande Salon
Additional Honorees
Avalon Salon and Day Spa, Deer Park, IL
Beau Monde Spalon, St. Johns, FL
Bell Tower Salon, MediSpa and Store, Wyomissing, PA
Belle Epoque An Atelier Salon, Kansas City, MO
Blo, Raleigh, NC
Geno Levi Spirit and Style Salon, Bethel Park, PA
Ginger Bay Salon and Spa, St. Louis, MO
Green Peridot, Frisco, TX
Hair on the Avenue, Sinking Spring, PA
Luxe Salon, Denver, CO
Mane Attraction Salon, Phoenix, AZ
Mango Salon, Richmond, VA
Maximum FX Salons Spas, Austin, TX
Modern Salon and Spa, Charlotte, NC
Richard Salon of Smithtown, Smithtown, NY
Satori: A Salon/Spa/Shopping Experience, Ithaca, NY
The Hair Company, Leonardtown, MD
Wax Poetic, Burbank, CA
Wisteria Salon Spa, Greenville, SC
You Salon, Ellicott City, MD
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