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Effectively Manage Your Retail Inventory

Mae Mañacap-Johnson April 2013 issue of Skin Inc. magazine
May 2012 ISPA Snapshot Survey

The May 2012 ISPA Snapshot Survey found that 73% of resort and hotel spas conduct retail inventory on a monthly basis compared to 63% of days spas.

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There’s a lot that goes into managing retail inventory for your skin care facility beyond just plugging in numbers on a spreadsheet. Savvy entrepreneurs understand that good retail inventory starts with a solid retail strategy—and sticking to it.

Strategy 1: Create a product category list

“Start with a list of the product categories that you feel you need to carry,” advises Charles Compton, founder of Mars Solutions, in the August 2012 issue of Pulse magazine, the International Spa Association’s (ISPA) official publication.

But why is retail categorization so important in the inventory process? According to Retail Management for Spas, an ISPA educational resource, product categorization is important because sales forecasting is conducted for each individual product classification. Without sales forecasting, you will not have access to trends and data critical to making an informed decision toward selecting and purchasing products.

Strategy 2: Determine the right amount of inventory

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