A Booth Rental Salon Case Study

904 Words May 25th, 2015 4 Pages
Diversion Business

Even though I set up Hair Drama as a booth rental salon, I kept Linda’s Salon business running. I liked working out of my home, and wanted to maximize my income. I didn’t need a commercial setting, operating an established, successful beauty business at home. I always shopped for the best deals on products for resale, and now took bigger risks buying larger deals for my home salon, placing the overflow of products onto Hair Drama’s shelves. Once I purchased a $200. deal, with free display and back bar, for Linda’s Salon. The manager/salesman from Peels Beauty Supply entered my salon and said they watched my purchases and threatened to cut me off. I didn’t understand what he meant and he explained that I purchased so much in product from them in the last month. Two hundred didn’t seem like enough to attract attention. I should sell that amount regularly, but in reality the retail market is tough. Often product sat on the shelves, unsold. The manufacturer changed the product packaging at regular intervals, and dropped the price of the old packaging, leaving the salons stuck with overpriced inventory. The distributor didn’t give refunds. One or two items didn’t qualify for the normal discount. The distributors marked up the individual items, allowing the normal discount after buying a dozen of an item. Once, my mom upset after she left State Supply House on Bijou to buy a liter of Apple Pectin shampoo for herself. The owner Jack,…
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