If you are a Salon Owner or a Manager, at least once you would have entered into the stock room only to find out the product has run out of stock. Moments like these can bring an odd situation among you and the customer because they have visited your Salon for a particular service accompanied with a certain product and now you have run out of stock.
When you run a Salon, you need to be clear about two things. What do you need and how much do you need. According to the Small Business Association of America, failure to manage stock inventory is one of the main reasons why Salons fail.
When you use a Salon Software with Inventory Management, it brings a lot of value to your business. The prime benefit is no more counting bottles to keep track of your inventory. Salon Software like MioSalon will take complete control of your inventory management providing detailed information on what is coming in and what is going out of your inventory.
Inventory Management is the key to retail sales. During client consultation, get as much information as you can and offer the best product that suits their needs. Managing a proper inventory will be much helpful to upsell and cross sell your products during the services or during the checkout process.
Here are few ways a Salon software can help you manage your inventory effectively:
1. Simplified purchase orders
Salon owners are often confused when they are ordering retail products. Products have to be ordered based on their outward movements. Do not get over excited and order a lot of fast selling products. This approach has a slight disadvantage coupled with it since most beauty products have a low shelf life.
Use your salon inventory management software to help you notify when you need to restock on certain products.
2. Automatic Product Consumption
Make use of the automatic product consumption feature to track the quantity of the product used per service.
For example, If a specific service like Hairwash requires 1 pump of hair wash gel and the whole tube will be used for upto 10 services, then the value to be filled in the automatic product consumption quantity is 1/10. (Because 1/10th of the tube has been used by now)
You can also select the product low level alerts where you will get alerts when a product runs lower than a certain count. With increase in product consumption, you will receive alerts to stock up on that product.
3. Automated Inventory Reports
Visiting the inventory reports every now and then will be much helpful for effective inventory management. The best part about an end-end salon software is that it provides detailed automatic reporting on your back bar inventory.
Salon owners/managers have to regularly check the inventory reports for any shift in retail sales patterns or any abnormal product consumption. With detailed inventory reports you can also analyze staff based product consumption and selling performance.
With just a few clicks, you can generate Reports that will provide you Business insights on the products that are selling well, products that need to be replaced, and products that you need to stop purchasing.
4. Reduces Shrinkage
Shrinkage is loss of inventory. It occurs mainly because of product expiry, damaged products, employee theft and shoplifting. Shrinkage hurts the business very much than other factors.
To eliminate product shrinkage, you have to stop over ordering, manual check the products upon arrival and use them before expiry dates. Every month after an inventory audit is performed, the salon software will give you a clear picture of expected inventory levels vs the actual levels in your inventory. The difference between them is where you need to focus.
Approximately 70% of retailers face a shrink rate higher than 1% and in 2019, this cost the retail industry $61.7 Billion.
Here are the 5 Main Benefits of using a Salon Inventory Management Software
1. Stop worrying about overbuying and manual product counting sessions. Save your time & money like never before.
2. When you raise a Purchase Order to the Supplier, an Email will be automatically sent to the Supplier along with detailed information. More information, more convenience!
3. Most Beauty products have low shelf life. You will get notified whenever a product is running low and reorder them only when required thereby reducing overstocking.
4. Check retail sales patterns using Automated inventory reports and easily run paperless Inventory Audits through MioSalon.
5. Improves your overall Customer Experience by selling the right products at right time through proper Inventory Management.
MioSalon Salon & Spa software has powerful inventory management features that allows you to automate your stock inventory process thereby removing the guessing game.