Information on Buying a Beauty Supply Shop

The beauty product company produces revenue of $11 billion per annum. The top 50 biggest retailers such as Sally Beauty Supply, Ulta, Sephora and Walmart produce 75 per cent of those sales. Small companies still have a place in the industry amid the pressure from big retailers. So if you're considering buying a beauty supply shop, you'll need to study the competition, review the financials and look at the following areas:

I can't emphasize enough the value of getting your target audience defined. With regard to a beauty supply brand, the target audience may include industry professionals such as cosmetologists, nail techs, aestheticians, salon owners, beauty brands, and even beauty school students or a shop may specifically target the customer, or maybe a shop serves professionals and customers alike.

Concerning location, check out the businesses around the store. Check to see how many salons or beauty supply near me and also what other shopping destinations like grocery stores and shopping malls exist near the store. The more conveniently located the greater opportunity of building a loyal customer base. A hair stylist may stop on his or her lunch break to pick up some needed beauty supply or someone doing their grocery shopping may stop to pick up a shampoo their grocer may not carry.

Inventory

Stock is the biggest operating cost for a beauty supply store. From what I've seen in the past, the most effective beauty supply stores stay up-to - date with the trends and accordingly stock famous products. Customers are eager to buy the new beauty items. The beauty company is extremely trendy which means constantly changing inventory. Blue nail polish, for example, may be hot for spring but will come summertime out of style. Don't pay full price for beauty supply not going to be famous in a couple of months. If you can't get rid of it, old inventory will have to be sold at a discounted rate anyway. Inventory must also be handled and tracked to ensure that no workplace theft occurs.

 

Product Knowledge

Knowledge of the items is key in the beauty supply industry. Customers are going to ask questions, and they want your input. This is a great opportunity for making recommendations and boosting your sales. Knowing what you're talking about will make you an expert in your field and, in effect, build consumer confidence and reputation. It is important to have excellent customer service too. Product knowledge coupled with more personal customer service will help you compete with the big dealers.

 

Expanding Markets

Beauty supplies stores that serve professionals in the industry produce additional revenue by selling equipment and design for the salon. Check to see if you are interested in providing catering to this market. If so, you'll need to know the patterns yourself. If not, when you take over maybe you want to consider this option

Marketing

Examine the Marketing Campaign for the new owner. Is the organization using any social media (blogs, YouTube) or engaging in any social networking activities (Facebook , Twitter, Pinterest)? If not, the social media ought to be applied to the marketing plan. Social media is a valuable tool that not only allows you to sell your products but also allows you to be an expert in your area.



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