Selling retail and keeping the perfect balance of product in your salon inventory can sometimes feel daunting. But with merchandising best practices in place and using the right technology, it doesn’t have to be. Here’s how to optimize your retail to maximize sales and keep stocked without breaking the bank.
What is merchandising, you ask? The process of promoting and selling products in a retail setting. Merchandising includes choosing what products to sell and in what quantities, designing attractive displays to present products in an appealing way, setting prices to maximize profit, offering promotions to appeal to customers, and developing marketing strategies to increase awareness and demand.
When merchandising professional hair care products, it’s essential to:
- Know your client demographics and their specific hair types, concerns, and lifestyles, and then carry the brands you trust will best meet their needs.
- Create displays to address their needs. For example, separate products by hair type (fine, thick, curly), concern (color protection, damage repair, etc.), and usage (shampoo, conditioner, styling).
- Highlight top-selling items and new launches in high-visibility areas and place complementary products near each other (e.g., shampoo with matching conditioner).
- Use visual merchandising to create compelling displays. Utilize attractive fixtures, color schemes, and lighting to draw attention to products.
- Add clear and informative signage with key product benefits and usage instructions. You can also ask your distributor for brand-supplied shelf talkers and tent cards or create your own.
- Adapt displays to reflect seasonal trends with promotions to increase sales. For instance, during the summer, promote products with UV protection, and in the winter, focus on products for dry hair. Create product sets with complementary items to encourage larger purchases and reward repeat customers with exclusive offers.
- Encourage client engagement through demonstrations of product applications and benefits. These tutorials make great content for newsletters and social media.
- Provide product samples when possible to allow customers to try them before buying.
- Ensure staff provides personalized hair care consultations for every client.
Here are some best practices to help you manage your salon inventory like a pro:
First In, First Out: Implement a system to ensure older products are used before newer ones by moving them toward the front of your display and pushing newer products to the back. This system ensures that products are sold before they expire, reducing waste and improving profitability.
Utilize Inventory Management Software: Invest in inventory management software designed for salons to help track stock levels, manage orders, and generate product usage and sales reports.
- Choose software designed explicitly for salons that allows you to track inventory levels, sales, and orders in real-time.
- Look for features such as reporting, low-stock alerts, and POS system integrations.
- Opt for cloud-based inventory management systems that allow easy access from any device. These systems ensure your data is secure and backed up and facilitate updates from remote locations.
- Ensure your inventory management software integrates smoothly with your point-of-sale system. This connection helps keep inventory levels updated in real time as sales happen.
Set Par Levels: Establish specific levels for each product, which indicates the minimum amount of stock you should have on hand and a maximum so you don’t overbuy. When inventory falls below the minimum level, it’s time to reorder.
Conduct Regular Audits: Rely on your software to conduct regular inventory audits to stay updated on stock levels, which will help identify slow-moving products, reduce excess stock, and prevent shortages of high-demand items.
Create a Reorder Schedule: Establish a regular schedule for reviewing low products and placing orders. This action helps ensure you always have the products you need without overstocking.
Monitor Sales Trends: Pay attention to which products sell the best and during particular times of the year. Use the reporting features in your salon software to analyze these trends, product performance, and profitability. This data can inform purchasing decisions, promotional strategies, and overall inventory management.
Offer Training and Support: Invest time in training your staff on how to use the technology effectively. Ensure everyone understands how to input data correctly, generate reports, and interpret inventory insights. This commitment to staff training is a key part of managing your salon inventory like a pro.
Effectively managing your salon’s retail inventory to ensure you always have the right products available for your clients involves strategic merchandising, innovative technology, and implementing best practices to meet client expectations while maximizing your retail potential.
