How do I spot slow-moving pomade and grooming stock in a barbershop?
Look at the shelf first: dust, faded labels, and many units of one product usually mean slow sellers. Then compare what is on hand with purchase invoices and sales records, and ask the barbers which products they actually recommend and sell.
A quick walk tells you a lot. Products at the front that clients handle every week look different from tins at the back that nobody has touched. Check best-before or batch marks where they exist, and look for packaging that is crushed, leaking or discoloured. Pomades and balms can change with heat and age.
Ask the seller for purchase invoices for the main brands and sales by product. If the shop bought a large case of something, see how much of it has gone. A product ordered repeatedly sells. A product ordered once and still on the shelf does not. Ask which items were bought on a deal and which were bought because a rep suggested them.
Ask how the barbers recommend products during a cut. In many shops the retail side depends on that conversation, and it may fade when the staff change. Agree with the seller how old or unsellable stock will be treated in the deal, and ask your accountant how that should appear in the books. Walk past the shelf again at the end of your visit, as unsold stock tends to look more obvious once you know what you are looking for.
Key takeaways
- Match shelf quantities to invoices and sales to see what moves.
- Check dates, damage and signs of heat on pomades and balms.
- Agree in writing how unsellable stock is treated at closing.
- Ask which products the barbers actually recommend to clients.
Related reading
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentWhat is inventory
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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