Worked scenario
Colour used on clients and colour sold over the counter, one stock
Where service consumption and retail sales share a stock, neither the service cost nor the retail margin can be stated accurately.
3 min read
A salon uses product in treatments and sells the same range. The stock record cannot tell the two apart unless someone records which is which.
Treatment pricing floats free
Without product consumption attached to a service, treatment cost is labour plus a guess. Treatments involving expensive product are frequently the ones priced closest to cost.
Retail deserves its own view
Retail is a genuinely different business with its own margin and its own slow movers. Merged into salon stock, it is neither managed nor measured, and it quietly ties up cash.
What changes
- Service consumption recorded against the treatment
- Retail sales separated from professional use
- Cost per treatment built from actual product use
- Retail margin visible independently of service cost
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