The key to beauty salon management! Learn about the importance and how to manage your inventory!

The beauty salon has a variety of stocks including products for sale in stores and products used for treatment. The more types of products you deal with, the harder you manage your inventory. For beauty salons, inventory is the so-called asset. Inventory management is the basis of beauty salon management is not an exaggeration.

In this article, we will tell you about the importance and specific methods of inventory management in beauty salons.

Why it is important? Analyze inventory management in beauty salons!

As with sales management, inventory management is one of the important tasks of managers. Despite the important things that lead to profits, sales are often prioritized and postpone. Do you know how much stock is currently in your salon? Being unable to answer this question right away is evidence that you are not interested in inventory management and that your inventory has not been managed accurately. Cash is managed properly by any company, but the current situation is that cash purchases are not well managed. Inventory is a form of money, so it can be said that it is part of the management of money.

The purpose of inventory management in beauty salons is to understand the right profits and maintain the right stock at all times to prevent increased costs and lost opportunities.

Inventory Management Essential for Efficient Operations

Depending on beauty salon, there are many ways to manage inventory, but you need to make inventory management look effective for busy salon work. Inventory visualization refers to a mechanism that allows you to check what is, where, and how many are in the inventory in real-time. Real-time data is critical to managing inventory quantities. With the right inventory management, you can streamline your operations and reduce your inventory. If you know the correct quantity of inventory, you can prevent excess inventory and loss of opportunities due to misplaced orders, and you can expect to increase your sales profit. As a result, it also leads to the trust of your customers.

Even if the inventory is visible, it is not meant to deviate from the actual quantity of inventory, so regular inventory is mandatory. Using the inventory management system, you can centrally manage your products from ordering to sales.

Implementing an Inventory Management System

Inventory management includes handwritten slips, paper-based inventory management, and filling out inventory management tables created in Excel or Access. However, in manual or Excel inventory management, human errors such as record errors and counting errors often cause differences between actual inventory quantities.

In order to eliminate the loss of wasted business in beauty salons, cloud-based inventory management systems and POS system in conjunction with cashier functions are now used as useful tools. With an inventory management system, you can manage your complex inventory, more accurate and simple.

What is a convenient POS system for managing inventory?

A Point of Sales (POS) system is a system that allows you to manage sales information that has been communicated with you. The POS cashier system is equipped with a cashier function.  There are many different types of POS systems, but one of the best is the Welcome POS system provided by Salesvu. In a single system, you can do all your tasks, and you can centralize tasks that were disintegrating and difficult to manage.

In the conventional cash register, there was a problem such as a mistake in the amount and time taken by hand, but by preparing the database where the product was registered in advance and working with the barcode scanner, the time of the press can be shortened.

Share and educate inventory management

Inventory management is the management itself, and it is an important initiative that can grow salons and lead management. First, create in-store rules for inventory management and manual them. By standardizing procedures such as when and how to do them, you can ensure proper inventory management for all staff, not just managers, but also for management.  Be sure to clarify the rules in advance, whether you count at the time of opening the item or when you have finished using it all, and thorough the correct management method so that there is no discrepancy in stock.

What is the right inventory management to increase profits and reduce costs?

In order to know gross profit (gross margin) in beauty salon management, it is necessary to understand the number of stocks. By inventorying, you can calculate how much your inventory will be, and you will be able to check the correct profit and loss accordingly.

Daily Inventory abatement

In order to manage inventory, you can check the actual number of inventory held is an operation that you want to do regularly. The frequency of inventory depends on the salon, but it seems that it is often done once a month after closing. It is important to check all products regularly, but it is useful to practice daily inventory to check inventory after closing every day in order to avoid deviations in-stock quantities as much as possible.

Improve your cash flow with the right inventory management

In terms of cash flow, inventory management should be aware of three things:

• Is there too much stock?

Due to the wrong perception that the more stock, the more convenient it is, you may have excess inventory. Cash flow worsened because it is throwing cash. However, if the inventory is too small, sales problems can arise, so it is important to have the right amount of inventory.

・Do you have an unsellable inventory?

If you have inventory that you do not plan to sell forever, you will not be able to expect cash flow on sale and will have a significant impact on future cash flows. Inventory may be unsellable due to higher prices or inferior performance or design than competitor products. Even if you hold it, it will also interfere with the storage of the necessary inventory, so you need to sell it with a significant price drop as soon as possible or discard it.

Is there any inventory that cannot be used?

Unavailable inventory will have a significant impact on future cash flows, as well as unsellable inventory since no cash can be recovered. The expiration date is set by the manufacturer and the product, but it is necessary to confirm. Correct inventory management is the obligation of the salon, as it may deteriorate even within the expiration date.

Understand management status through inventory management

By thorough inventory management, you can understand the management status from sales and expenses. It is possible to create a mechanism to make use of management such as whether there are no waste expenditure or improvement points. By using the Salon POS System, you can analyze salon management from various angles, leading to a sales increase in stores. Checking for over-stock, out-of-stock, and overdue defective inventory can help you to plan your future sales strategy. Manage your inventory on a daily basis to eliminate waste and predict the amount of inventory you need for a month.