Every now and then, spa owners and managers may need to move inventory fast, whether it’s to make room for more seasonal items or simply to make sure they’re not losing money. My No. 1 cardinal rule is that you should never put all your products on sale storewide; this eats away your profit margins. Instead, focus on the slower selling products, not your strong sellers.
You may be tempted to mark items down, but I advise stepping away from the red marker! First, try these strategies, which will help you minimize inventory flow and maximize profits.
We all know the ongoing retail dilemma: buy too much, outlay too many dollars for something that doesn’t sell, versus not having enough inventory and missing out on the potential sale. Luckily, there are plenty of ways to get inventory moving without cutting prices.
To start, consider re-merchandizing it. Move it around in the store, reposition it, package it up differently or put it beside a strong seller. People will notice it in a different spot.
Educate your staff or remind yourself of those forgotten items. What are the top three to five ways that the guest can benefit from this product? Give all of your products the TLC that they deserve so that they will sell. Get excited and be committed to educating everyone who comes through your doors.
Give a gift with purchase, where the price of the home care is bundled into the treatment price or offered for free if a guest spends a certain amount in one visit. You can set the amount, and it can be a great way for you to decrease your inventory while optimizing your sales. This works especially well with unique retail like candles or earrings.
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Tazeem Jamal, LE, PMDT, is an award-winning Spa Biz Coach, spa owner and master esthetician. As a coach, she has helped hundreds of spa pros scale and grow their businesses using her signature framework, The Purple Carpet Experience. Jamal has been featured on TV, radio, podcasts and in multiple industry publications.