Onto the third post of the 4 part series in InSPAration Management’s blog on gaining financial health! Last post, we went over understanding your spa profit & loss statement, or your financial monthly report card. All those ratio measurements will make your head spin, but they’re definitely good to know when planning your finances! Now, let’s read about the next important part of your finances that spa leaders often forget to incorporate.
3. Managing your Inventory
Inventory is a big expense if it’s not managed properly. Your inventory includes your retail, your professional products, guest supplies, team supplies, etc. Use your software system to track your inventory and manage your retail and professional turnover rate. We often find overuse of professional products and find that the team is upgrading treatments and not charging the guest for it. That will cause the treatment cost to go up and diminish your profits! To avoid this from happening, we recommend having a dispensary and pre-measured product use to have better professional cost control.
As for retail, you must have self-discipline and not overspend. You must calculate your “open to buy” rate to avoid overspending.
If you’re stuck on how to organize your inventory and need someone to guide you face-to-face, consider InSPAration Management’s Merchandising opportunity so we can visit you on-site and teach you everything about merchandising, retail, and inventory management! You can also check out our merchandising CD with helpful strategies to maximize revenue.
Do you have additional questions about managing inventory or InSPAration Management in general? Please don’t hesitate to leave a comment below so we can respond to your inquiries!