The beauty supply industry produces sales of $10 billion each year. 75% of these sales are made by the 50 biggest retailers such as Sally Beauty Supply, Ulta, Sephora, and Walmart. Despite the fierce competition from the big retailers, small businesses can still find an opportunity to compete. If you’re thinking of buying a beauty store, it is essential to look into the competition, study financial statements and consider the following areas:
Location and Target Market
I can’t emphasize enough that it’s crucial to determine your market. For a shop selling beauty products, your market of choice could comprise professionals from the industry, like cosmetologists, nail techs, salon owners, estheticians, as well as students from beauty schools or even consumers directly, or maybe the shop serves both consumers and professionals in the industry.
Regarding the location, look up the local businesses. Look up how many beauty salons and schools are located nearby, and which other shopping locations such as supermarkets and malls are located near the store. The closer to the location, the better chance of establishing the foundation of a loyal client base. Hair stylists may make a stop during their lunch break to purchase certain products, or someone who is doing their grocery shopping might make a stop to buy an item that the grocer does not have.
Inventory
The inventory of a beauty supply store’s biggest operating expense. Based on what I’ve seen previously, most profitable beauty stores are current with the latest trends and stock the most popular items in line with the latest trends. Customers are looking to purchase the most recent beauty products. The beauty industry is extremely popular, so inventory is constantly changing. For instance, the blue nail polish might be trendy for spring, but it will not go into fashion by summertime. Don’t spend a lot of money on items that aren’t going to be trendy in the next few months. Old inventory has to be offered at a discount amount if you can’t eliminate it. In addition, inventory should be tracked and managed to ensure that employee theft isn’t happening.
Product Information
The ability to know your product is crucial in the business of beauty supplies. Customers are likely to ask questions and will want your advice. This is an excellent opportunity to offer suggestions and boost the number of sales you make. Being knowledgeable can establish you as an expert within your field and will, in turn, improve your credibility and credibility with your customers. Offering excellent customer service is essential and essential. The knowledge of your product and personal customer service will enable you to stand out from the big retailers.
Markets are expanding
Stores selling beauty supplies that cater to professionals in the industry are earning additional income by selling salon equipment and designs. Make sure to check whether the shop you’re looking at caters to this particular market. If it does, you’ll have to learn about the current trends. If you’re not doing so, you might think about this as you transition to the new position.
Marketing
Review the current owner’s marketing strategy. Does the company use any type of social medium (blogs, YouTube) or take part in any social network (Facebook, Twitter, Pinterest)? If not, then you be required to include social media in your marketing plan. Social media is a powerful instrument that allows you to not just sell your product but also show that you are an expert in your field.
Outlook
According to IBISWorld reports, beauty supply store owners will be relying on introducing new products in order to increase sales within the coming five years. The competition from discount stores such as Walmart and drugstores is rising, and, despite the fact that revenues are still strong, The organization anticipates competition within the beauty supply shops to grow.
In addition to checking out the competition and scrutinizing financials on their own, paying attention to locations, target market and inventory, the products available that could be sold, and the use of social media could aid in evaluating the purchase of the beauty shop.