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Salon Budgeting for the Holidays

October 16, 2012

Are you ready for the holidays?

If you haven’t already started preparing for the holiday season business surge, then time is of the essence. You need to plan your budget and your product offering, prepare your visual merchandising materials and organize your holiday decorations. Without some forethought and a well laid out plan your salon can end up looking like you hung your decorations and set up your displays using a catapult.

Holiday Buying & Budget

Your buying budget is typically based upon a combination of your previous year’s figures and projected sales for the upcoming season. For the purpose of illustration, let’s assume that you have a retail budget of $20,000 for the holiday season. $7,000 of this will be allocated to your regular stock purchase in order to meet your average monthly retail demand, leaving $13,000 for your holiday specials. From this amount set aside 25 per cent as your re-ordering budget for your best selling items.

Divide the remaining $10,000 into categories (Tools, Skin Care, Hair Care and Sundries), and then break it down further into brands and products. Keep your shopping simple and focused. For example, if you allotted $3,000 for Haircare, allocate 60 per cent to your primary line, 30 per cent to your secondary line and 10% to the specialty line (don’t bother with anything that is less than 10 per cent). Finally, adjust your numbers slightly to take full advantage of manufacturer/ distributor special deals and offers (especially those that qualify you for free promotional support).

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