Are you struggling with proper salon inventory management and poor client experience? We have got you covered. You must have heard before that inventory management is very important for every business’s growth,  and without tracking it, salons can get into trouble.  It is true! Inventory management is a very important part of the business, and effective one can reveal a lot about business health. If you are running a salon studio without proper stock management, you should take care of that before your businesses face losses due to overstocking, understocking, or misuse of resources. 

Hence, Keeping track of salon inventory levels, customer demand, and supplier performance is really important. It will aid salon owners to make data-driven decisions and avoid financial losses in the future.  To help your salon get over these lags, we have compiled this guide that includes

  • Important metrics of the inventory analysis
  • Role of the powerful inventory management system 
  • Benefits of salon software with inventory management

What is Salon Inventory Management Software?

Let’s first understand what inventory management is. It means tracking and managing your in-house stock levels. To ensure that products are available at the time they are in need, inventory management is important. Surprisingly, salon inventory management software can help salon owners with this. Further, It is beneficial in tracking order shipments, monitoring customer demand, forecasting future stock needs, etc.

4 Important Key Metrics of Inventory Management for Salon Studio

There are lots of reasons to invest in inventory management software to reduce the cost of carrying the extra stocks over time. Plus, increasing the efficiency and accuracy of inventory management can help salons maximize their profits. Moreover, it can help salons in optimizing their inventory levels and avoid stock outs. That will improve salons’ business operations and enhance customer experience.

To help salon businesses understand the important stats and trends, we have put the following 4 key inventory management metrics. 

  • Inventory Turnover

Inventory turnover means the number of times it has been sold over a certain period of time and got restocked. The higher the turnover point, the better your salon sales are, and vice versa.

  • Average Days to Sell Inventory (DSI)

This metric tells you the average number of days your salon takes to sell all inventory.  If your DSI is too high, it means your sales strategy is not working and needs to be revised. If your DSI rate is low, it means your sales are good but have the risk of running out of it soon. 

  • Return on Investment (ROI)

This is the most commonly used and verse term for every business, As it can tell the business’s overall performance. These key metrics tell how much your business has gained over the investment. The higher the return on investment is, the better your salon is working, and vice versa.

  • Carrying Costs

This carrying cost tells how much your inventory is costing you to hold, including the storage, opportunity, management services, and risk costs. The lower the carrying cost, the better. Because the higher the carrying cost, the higher the financial burden for your business. It is important to keep track of this cost to ensure that it is kept to a minimum.

5 Benefits of Using Salon Inventory Management Software

For salon owners, it is not possible to keep track of everything on their own manually.  They need a reliable tool on which they can rely and ensure the smooth functioning of salons. Here, salon inventory management software will help them to follow up with all of the functions in a single system. 

Now, salons will be able to do more accurate inventory management, reducing the need for manual tracking and so the errors. It also helps to reduce the cost of labor associated with manually tracking inventory. Additionally, it allows for more efficient reordering of stocks and timely notifications. Below are 6 benefits of an inventory system that will help salon owners in better management and reducing human errors.

  • Robust POS Tool

With the help of the salon, the software offers a powerful POS system that will be integrated with the website and help salons automate sales, inventory, and cash flow.

  • Suggestive Selling to Increase Sales

Some salon or spa software is so powerful with the help of AI that it helps costumes to buy related products and notify owners to stock them.

  • Automatic Notifications and Confirmations

One more benefit of the salon’s software is that it automates all the notifications, like confirmation of orders and appointment bookings. The software will send the reminders to clients.

  • Detailed Reports of Sales, Leads, Finances, overall Performance

The software keeps track of the metrics and notifies the salons regularly about updates. Further, some of the robust inventory management systems will create detailed reports of sales, leads, inventory, and business performance.

  • Easy Inventory Tracking

This software helps salons to track all the above-mentioned inventory metrics and manage them efficiently. Then, salons can set up further customized and required inventory metrics. Furthermore, if salons are multi location, then this powerful salon software will help you manage all in a single system. This software will improve the salon’s business process, boost profitability, and enable you to manage the following:

  • Product consumption: Salons can easily track and optimize product consumption by ensuring optimum stock levels.
  • Salon management on multi location: Easily manage all stock levels across multi-location salons.
  • Recharge levels: By informing salon owners whenever the inventory level lowers the threshold point. Hence, help salons to restock them timely.

Brief Financial Reports and In Depth Insights

Choose salon software that offers more customizable financial reporting options fitting your salon studio needs. Detailed financial and performance reports are essential for effective performance management and informed business decisions.  

Bottom Line

Poor inventory management can lead to many problems and create financial problems. For example, overstocking of products can lead to a wastage of money, and understocking of products can lead to poor customer experience. Further, if salons are not tracking inventory, it can lead to inaccurate financial reporting, resulting in ineffective business decisions. 

Therefore, it is really important for salon owners to take control of the inventory. Track them efficiently with the salon inventory management system and understand the trends with the help of metrics.