![How to plan and track the budget of your beauty supply store [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-1_f35095e5-f163-485b-a66c-6e3ad4981f10.png?v=1715856355&width=1100)
If you don’t plan and track your beauty supply store budget properly, you're setting yourself up for failure.
When we developed our strategy pack for beauty supply store owners, we saw a lot of store owners struggling with finances and planning.
They were disorganized, had no grasp of cash flow, and were drowning in financial troubles despite having substantial revenue.
Don’t let this be you—stand out and succeed.
We’ve created a small, free tool to help you get started: our Budget Tracker and Planner. Let’s turn your beauty supply store's finances around and set you on the path to success!
Get the budget tracker tailored for beauty supply stores
Most beauty supply store owners don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for beauty supply stores
Here is an example of a (very) detailed budget for a beauty supply store, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for retail space | $4,000 | $48,000 |
| Electricity | Power consumption for lighting and equipment | $600 | $7,200 |
| Water | Water usage | $100 | $1,200 |
| Internet & Phone | Internet service and business phone | $150 | $1,800 |
| Waste Removal | Garbage and recycling services | $100 | $1,200 |
| Pest Control | Monthly pest control services | $50 | $600 |
| Insurance | Property and liability insurance | $400 | $4,800 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| Store Manager | 1 | $3,500 | $3,500 | $42,000 |
| Assistant Manager | 1 | $2,500 | $2,500 | $30,000 |
| Sales Associates | 3 | $2,000 | $6,000 | $72,000 |
| Cashier | 1 | $1,800 | $1,800 | $21,600 |
| Stock Clerk | 1 | $1,800 | $1,800 | $21,600 |
3. Inventory Costs
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Beauty Products | Skincare, haircare, makeup, etc. | $15,000 | $180,000 |
| Tools & Accessories | Brushes, combs, applicators, etc. | $2,000 | $24,000 |
| Packaging Supplies | Bags, boxes, wrapping materials | $300 | $3,600 |
| Cleaning Supplies | Detergents, sanitizers, etc. | $150 | $1,800 |
| Office Supplies | Stationery, pens, printer ink, etc. | $100 | $1,200 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, Facebook Ads, etc. | $300 | $3,600 |
| Social Media Management | Managing social media accounts | $500 | $6,000 |
| Print Advertising | Flyers, posters, newspaper ads | $200 | $2,400 |
| Website Maintenance | Hosting, domain, updates | $100 | $1,200 |
| Email Marketing | Email campaigns and newsletters | $150 | $1,800 |
| Promotional Events | Special events and promotions | $200 | $2,400 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Equipment Maintenance | Regular maintenance of store equipment | $300 | $3,600 |
| Uniforms | Staff uniforms and aprons | $150 | $1,800 |
| Licenses & Permits | Business licenses, health permits, etc. | $100 | $1,200 |
| POS System | Point of Sale software and hardware | $150 | $1,800 |
| Contingency Fund | Emergency repairs and unexpected costs | $500 | $6,000 |
| Staff Training | Training programs and materials | $200 | $2,400 |
Some beauty supply stores make 5x more profit than you!
We have studied the strategies of the best beauty supply stores in the world. Replicate them now!
What are the biggest expenses for a beauty supply store?
Be mindful of these critical expenses. Here are five major costs every beauty supply store owner needs to consider, along with some tips on how to manage them effectively.
- Inventory costsThese can take up a significant portion of your budget. You're dealing with a wide range of products, and prices can vary based on brand, demand, and quality. To keep these costs under control, focus on inventory management, negotiate better prices with suppliers, and minimize overstock. It's easy to overspend by purchasing too much or opting for high-end products that don’t sell quickly.
- Staffing your beauty supply storeYour staff is essential, but paying for their wages, benefits, and training can be costly. This expense is always high because you need knowledgeable employees to provide excellent customer service and keep the store running smoothly. You can optimize labor costs by scheduling efficiently, cross-training staff, and monitoring productivity. However, be careful not to underpay or overwork your staff, as this can lead to high turnover and poor service.
- Rent and utilities of your storePrime locations come with high rent, but they can attract more customers. Utilities like electricity, heating, and water are necessary but can add up quickly. To optimize these costs, negotiate favorable lease terms and invest in energy-efficient lighting and appliances. Overspending often happens when you choose a location that's too large or too upscale for your needs.
- MarketingYou need to promote your beauty supply store, but advertising can be expensive, whether it's online ads, social media campaigns, or traditional media. Optimize this expense by focusing on cost-effective methods like the ones we provide in our guide. Overspending can occur if you invest in flashy campaigns without a clear return on investment.
- Store fixtures and maintenance costsThis includes everything from shelving units to display cases. These are expensive because quality fixtures and regular maintenance are crucial for a pleasant shopping experience and smooth operations. Optimize by investing in durable, functional fixtures and maintaining them regularly to avoid costly repairs. You can overspend by going for the latest high-tech displays you don’t really need.
How to spend less with your beauty supply store?
Here are practical tips to help you, as a beauty supply store owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Product Costs | Partner with local manufacturers for high-quality, affordable beauty products. |
| Labor Costs | Implement a scheduling software to optimize staff hours and reduce overtime. |
| Utilities | Install LED lighting and energy-efficient HVAC systems. |
| Marketing | Run social media contests for your beauty store and collaborate with beauty influencers for free exposure. |
| Cleaning Supplies | Train staff on efficient use of cleaning supplies to reduce waste. |
| Equipment Maintenance | Set up a maintenance log for regular equipment checks and servicing. |
| Rent/Mortgage | Negotiate lease terms during renewal or consider moving to a less expensive location. |
| Insurance | Regularly review insurance policies to ensure they meet current needs and compare rates annually. |
| Packaging | Use cost-effective, eco-friendly packaging and offer discounts for customers bringing their own bags. |
| Display Fixtures | Invest in high-quality, durable display fixtures that can withstand frequent use. |
| POS System | Choose a POS system that offers essential features with low transaction fees and integrates with other systems. |
| Staff Training | Conduct regular in-house training sessions and use free online resources. |
| Waste Management | Implement a waste tracking system to minimize waste and recycle excess materials. |
| Technology | Invest in multi-functional devices and utilize inventory management software for stock control. |
| Uniforms | Choose durable, easy-to-clean uniforms and offer staff a stipend for maintenance instead of using an external service. |
| Licensing and Permits | Stay up-to-date with local regulations to avoid fines and costly renewals. |
| Transportation | Plan delivery routes to maximize efficiency and reduce fuel costs. |
| Office Supplies | Purchase supplies in bulk and go paperless where possible with digital order systems. |
| Inventory Management | Use inventory management software to track stock levels and reduce spoilage. |
| Pest Control | Schedule monthly pest control services and maintain cleanliness standards to prevent infestations. |
| Music and Ambiance | Use a streaming service for background music and create a relaxing shopping environment. |
Copy the tactics of the best beauty supply stores in the world!
There are beauty supply stores that make way more money than you do. We have studied their tactics. Get them now!
Expenses that are just useless for a beauty supply store
Yes, some expenses for your beauty supply store are just unnecessary. They don't contribute to increasing revenue or enhancing customer satisfaction.
| Beauty Supply Store Expense | Reason It's Useless |
|---|---|
| Luxurious Store Fixtures | Overly extravagant fixtures don't necessarily attract more customers and can be a drain on the budget. |
| High-End Product Lines | Unless you cater to a high-end clientele, most customers are satisfied with mid-range options. |
| Excessive Product Variety | A large inventory increases storage costs and leads to more unsold products. |
| Top-Tier Display Units | Premium display units are not always necessary and can be cost-prohibitive. |
| Paper Advertising | Traditional paper ads often have a lower return on investment. Don’t include them in the marketing strategy of your beauty supply store. |
| Multiple Uniform Styles | Having various uniform styles increases costs without adding significant value to the customer experience. |
| Excessive Staff | Overstaffing leads to higher labor costs without necessarily improving service quality. |
| Premium Subscription Services | Expensive subscriptions for beauty magazines or music often go unnoticed by customers. |
| Exclusive Product Ingredients | Using rare ingredients can inflate costs and complicate supply chains. |
| Costly Furniture | High-end furniture is not always appreciated by customers and can be a significant expense. |
| Custom Printed Bags | Personalized shopping bags are a minor detail that most customers overlook, and they can be expensive. |
| Unnecessary Software | Paying for software with features you don’t use is a waste of resources. |
| Premium Water Brands | Most customers are content with filtered tap water, making expensive bottled water unnecessary. |
| Extra Delivery Vehicles | Maintaining a larger fleet than needed increases operational costs. |
| Excessive Membership Fees | Paying for multiple industry memberships often yields little benefit. |
| Overly Frequent Renovations | Constantly updating decor and layout can be costly and disrupt operations. |
| Expensive Store Decorations | Elaborate decorations are often ignored by customers and add to the cost. |
| High-End Display Cases | Luxury display cases are prone to damage and expensive to replace, often going unnoticed by customers. |
| Excessive Staff Meetings | Too many meetings can reduce productivity and increase labor costs. |
| Expensive Promotional Materials | Frequently redesigning promotional materials is costly and often unnecessary. |
| Unused Promotional Items | Ordering more promotional items than needed leads to waste and unnecessary expense. Get our marketing budget planner template. |
| Paid Directory Listings | Many free listing options are available, making paid listings often redundant. |
| High-End Beauty Tools | Specialized beauty tools are often unnecessary and add to costs without a proportional benefit. |
Stop working with a tight budget for your beauty supply store!
Managing a budget for a beauty supply store when funds are tight can feel overwhelming. It's like being trapped in a cycle where any unexpected expense can throw you off balance.
This constant pressure makes it nearly impossible to invest in new products or marketing initiatives, leaving you always scrambling to cover costs. It's a life filled with stress and sleepless nights.
Yes, you can continue down this path, pinching pennies and barely making ends meet. But there's another part of the equation you might be overlooking. Instead of just trying to cut costs, you can focus on growing your revenue. More income means more flexibility and more resources to invest back into your business.
And no, you don't necessarily have to spend money to grow. There are plenty of zero-cost initiatives and strategies that can help you increase your revenue by 10%, 20%, or more. We've detailed all of these strategies in our guides, after studying dozens of beauty supply stores just like yours. Get them now!
Make your beauty supply store more profitable
We have studied the strategies of the best beauty supply stores in the world. All their tactics are explained in our pack!
