Home' INSTYLE Magazine : INSTYLE MAY-JUN 2018 Contents 1. UNDERSTANDING WHERE YOU’RE AT
Do you have any processes to keep track of your stock? Do you
know how much money is sitting on your shelves? It’s important to
take the time to understand where you’re at so you know what you
need to do to improve your stock management.
2. REGULARLY STOCK TAKE
To start, look at your current stock levels and the value of that stock.
If you’ve got a software system where you’re already tracking your
stock, that’s great! A pen and paper and an excel spreadsheet isn’t
always the most efficient way to keep on top of it.
Once you know what stock you have on hand, you need to think
about scheduling a regular stocktake for your business. To do this,
you should think about:
• How often you’ll stock take. (Once a week is recommended)
• When you’ll stocktake. Setting a specific day and time helps to
create a habit and introduce it into your routine.
• How you’ll record your stocktake. Using your software package to
automate this will save time, reduce errors, and make updating
your records and ordering more stock a breeze.
• Decide how you’ll track in- salon stock use. See if your software
package has a stock ‘check out’ feature so your stock levels are
always kept up to date.
3. KNOWING WHAT YOU NEED
Stock management is a balancing act. From the amount of stock
you have, to how often you stock take and what you order, it ’s all
about having the right amount of stock to meet the needs of your
clients and staff.
Here’s some tips to understanding what you need:
• Run your reports and identify trends. What do you sell lots of and
what doesn’t sell? Let history guide your orders.
• Don’t let discounts drive your purchasing decisions. You should
purchase the stock you know you can sell at a profit and within a
reasonable time frame.
• If you’re running a promotion or marketing campaign, consider
the impact this could have on your stock levels.
• Don’t over order. According to the State Government of Victoria,
Australia the estimated cost of holding stock is 10-30 per cent
of the stock’s value. Costs include storage, insurance, keeping
accurate tracking records and controlling stock to avoid theft.
• Keep shelflife in mind. You don’t want to risk stock going out of
date before you get a chance to use it, so only order when stocks
are running low.
4. WHO’S IN CHARGE?
Assigning a dedicated person to manage stock can help in a number
of ways. It ’s efficient, allows an individual to become experienced in
the process, gives accountability to one person and can help reduce
mistakes that can occur when there’s many people involved.
Choose someone who’s organized, would like the additional
responsibility and is trusted.
5. CREATE AN ORDERING SYSTEM
Your in-salon and retail stock must be sufficient to meet the needs of
your customers and staff without running out or tying up too much
of your budget. So having a really good ordering system in place
To have a good ordering system you need to consistently complete
stocktakes. Whether you do this manually or use a salon or spa
software system, keeping a record of stock turnover will allow you to
determine what your orders should be.
There’s a few different stock ordering methods. Salon Today
suggests that having enough product on hand for one month
of in-salon and retail sales is a good starting point. Or you
could set your own minimum threshold stock levels so you
know when you need to reorder products. To calculate this,
determine your supplier lead times and your sale levels of each
product. For example, if it takes a supplier five working days from
order to delivery of products, and in five days you historically
sell 10 bottles of shampoo, your minimum threshold for that
product is 10.
Whichever method you chose to use, by regularly stocktaking
and having a clear method for ordering stock, you’ll be able to
ensure you always have the products you need.
Having a strict process for incoming orders is important as you need
to ensure what you’ve received matches the invoice. It also helps
keep your stock takes up to date.
No matter what system you use to keep track of your stock, it ’s
important to correctly record every change in stock. By updating
your stocktake every time you sell an item, receive a new order
or use a product in-salon, you’re more likely to have correct
information to refer to. It ’ll also make your weekly stock count faster
6. THINK ABOUT STORAGE
There’s a few things to think about when it comes to storing
• Do you have products that need to be kept in certain conditions?
e.g . not in direct sunlight.
• If you have more stock than what’s on display, ensure you have
enough space to store the excess somewhere.
• Track where your excess stock is stored. It ’ll allow you to keep
stock organised, be quick to find and ensures stock takes can be
• Bear in mind expiry dates. If there’s still product on your shelf don’t
put the new stock in front of it, put it at the back so you’re using
older products first.
Joanne Neville is the Marketing Manager at Kitomba Salon &
Spa Software. To learn more about what Kitomba can do for your
business, visit www.kitomba.com or call 1800 161 101.
Stock is a key part of any salon, spa or clinic. However it can have a severe impact on your
business if it’s not correctly managed. Here are six steps to help you successfully manage your
stock, writes Joanne Neville.
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