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Assortment Planning

July 9, 2012

No matter how high or how low your retail sales figures, your retail department is almost always the most profitable area of your business. On average, after paying sales commissions you still make at least a 30%margin. Retail alone can move your business out of the red and into the black.

In a well laid out salon, to determine if your retail business is performing optimally, calculate the percentage of overall salon space allocated to your retail and reception area. This figure should equate to the same percentage of your overall business revenue that your retail department generates. If this is not the case there is a good chance that you need to reevaluate your assortment plan.

Assortment Planning ensures that the right products are in the salon at the right time – and at the right price. This means anticipating what your customers are looking for and building a product mix that attracts customers. By ensuring that your assortment is attractive to your target customers and profitable to your bottom line, your salon/ spa benefits from faster inventory turns, decreased lost sales, and fewer markdowns.

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