Salon Operations, Inventory, Customer Service and Entrepreneurship
What this domain covers
This domain tests the business side: scheduling, stock control, costing, complaint handling and the basics of setting up.
Operations and inventory
- Use an appointment book or software recording therapist, room and duration; confirm 24 hours ahead and log no-shows.
- Set a par level for each SKU, keep a stock register of goods in and out, follow FIFO/FEFO so older stock is used first, and calculate a reorder point as average daily use times lead time plus safety stock.
- Store products away from sunlight and heat, check expiry and PAO monthly, and record wastage.
Costing
Service price equals product cost plus therapist time plus allocated overhead such as rent, electricity and laundry, plus margin. Add GST as applicable. Review prices when product costs change, not only when competitors do.
Customer service
Greet within 30 seconds, confirm the service, give aftercare advice, invite feedback, and handle complaints by listening, apologising, acting and following up. Track average ticket value, retention rate and retail-to-service ratio.
Entrepreneurship
A business plan covers location and footfall, licences such as Shops and Establishment registration, GST and municipal permissions, staff, equipment, insurance, marketing and break-even. Break-even equals fixed costs divided by price minus variable cost per service.
Worked example
A salon uses 400 wax strips a month, the supplier takes 10 days, and the salon keeps a week of safety stock. Daily use is about 13 strips, so the reorder point is roughly 13 times 10 plus 91, about 220 strips. Reasoning: ordering at 220 stops the salon running out while waiting for delivery.
Traps
- Calling revenue profit.
- Ordering bulk stock near expiry for a discount.
- Pricing only against a competitor without knowing your cost per service.