🧴 Salon Inventory Management: Stop Running Out of Products

The Two Types of Inventory Loss

Salons lose money on inventory in two ways:

1. Running out: You're mid-appointment and realize you're out of 7N. You substitute, the result isn't perfect, and the client isn't happy.

2. Overstocking: You ordered too much of a shade nobody asks for. It sits on the shelf for months, tying up cash.

Both are preventable with basic tracking.

Set Reorder Points

For each product, define a minimum quantity. When stock drops to that level, it's time to reorder.

Formula: Reorder Point = (Daily usage × Lead time in days) + Safety stock

Example: You use 2 tubes of 7N per week, your supplier delivers in 5 business days, and you want 3 tubes as safety stock. Reorder point = (0.4 × 5) + 3 = 5 tubes.

Separate Professional vs. Retail

Track professional products (used during services) and retail products (sold to clients) separately. They have different margins, turnover rates, and ordering cycles.

Professional products are a cost of doing business. Retail products are a profit center. Treat them differently.

Monthly Inventory Check

Once a month, count everything. Compare what you have vs. what your records say. Shrinkage (product used but not tracked) is normal in salons — but if it's excessive, you have a waste or theft problem.

Track your total inventory value. If it's growing but sales aren't — you're overstocking.