The talented team of salon business consultants from Salon Success shared the importance of the ‘holy trinity’ to successful take home sales during the Salon Smart workshops: stock, communications and merchandising.
Having the right stock mix for your business and setting goals will help you to reach the profit targets that you choose to set. Sounds simple right? Well it can be!
Let’s start with goal setting:
- What level of take home sales did you achieve last summer?
- What level of take home sales would you like to achieve this summer?
- What promotions and stock do you need to have in order to achieve this goal?
Your take home area is your in-salon ATM. Your stock provides the fuel for the money machine; the more fuel you put in, the further it will go! But how do you work this numbers game successfully and find out what suits your business? You need to discover your speed of sales using these key considerations.
- How much stock do you need to reach your goal?
- What is the right kind of stock, what are your stylists’ favourites or your top 20 best sellers?
- What are your current stock levels?
You can calculate your speed of sales using this simple calculation:
Weekly take home sales at RRP => e.g. £500
Value of take home stock at RRP => e.g. £5,000
Press % on your calculator
= your speed of take home sales 10%
Once you have this formula nailed down, you can then work out how to reach your goals. If you sell 10 per cent per week, you are in balance. If you sell more than 10 per cent, you need to order more stock and if you sell less than 10 per cent then you need to revisit the fundamentals of product recommendation with your team and take a look at your stock mix.