Why Inventory Tracking Matters in Service-Based Businesses (and How to Do It Right)
- Elaine Truesdale
- Apr 1
- 3 min read
When people think of inventory, they often picture retail stores or warehouses. But for service-based businesses—from salons and barbershops to spas and esthetician studios—inventory is just as critical. Whether it's shampoo bottles, cleaning solutions, or repair tools, the items used to deliver services are essential to your operations.
At Truesdale and Associates, LLC, we help service-based business owners put the right systems in place to stay profitable, scalable, and sustainable. One of the most overlooked systems? Inventory tracking.
Why Tracking Inventory Matters
1. Cost Control
Every product used in your service delivery is an expense. Without tracking, you’re likely to overspend, undercharge, or lose sight of your margins. A hairstylist using premium color products without adjusting prices, for example, could be cutting into profits without realizing it.
2. Service Consistency
Running out of a key item during a busy day can disrupt operations and frustrate clients. Proper tracking ensures that you're always stocked and ready.
3. Preventing Shrinkage
Missing inventory often goes unnoticed in service businesses. Tracking helps reduce losses due to misplacement, waste, or theft.
4. Data for Smarter Decisions
Knowing which items you use most often—and how fast they move—helps you make better purchasing decisions and forecast more accurately.
How to Track Inventory in a Service-Based Business
1. Identify Trackable Items
List all consumables and tools essential to your services. Break them into categories like:
Consumables: shampoos, towels, gloves, nail polish, cleaning supplies
Tools & Equipment: clippers, brushes, ladders, vacuums
Retail (if applicable): items for resale to customers
2. Set Minimum and Maximum Levels
Establish minimum stock levels to avoid running out, and maximum levels to prevent waste or over-ordering.
3. Choose a Tracking Method
You can use:
Manual tracking: Spreadsheets or paper logs (great for small operations)
POS systems: Many include basic inventory features
Inventory software: Platforms like Sortly, Zoho Inventory, or QuickBooks Commerce
Booking software: Many systems for salons and wellness businesses allow you to manage inventory for both service and retail items, set low-stock alerts, and track manual adjustments
Wix (Wix Stores & Wix Bookings): Manage product inventory directly through your website, receive low-stock alerts, and connect usage patterns to appointment volume for deeper insights
4. Track Product Usage Per Service and Team Member
Even if your system doesn’t do this automatically, you can still gain valuable insight by:
Creating a simple log or form for providers to record what products were used per appointment
Estimating average product use per service and calculating usage based on service volume
Monitoring individual provider inventory usage patterns to identify overuse or training needs
This step helps uncover waste, undercharging, or inefficiencies that impact your bottom line.
5. Assign Responsibility
Designate one team member—or yourself—as the person responsible for inventory counts and ordering.
6. Count Regularly
Conduct full inventory counts monthly and quick spot checks weekly for high-turnover items.
7. Monitor Usage Trends
Watch for seasonal shifts or trends in product use. Are gloves used more in the summer? Do certain products spike in the holiday season?
8. Adjust Pricing Accordingly
If your costs rise, your pricing should reflect that. Tracking inventory gives you data to confidently adjust your rates.
Take Control of Your Inventory, Take Control of Your Business
Running a service-based business is already demanding. But tracking inventory—even with simple methods—unlocks insights that help you save money, streamline operations, and grow sustainably.
Need help setting up an inventory system that works for your business?
Truesdale and Associates, LLC can help you implement tools like Wix, Vagaro, and more to support your goals.
Feel like you’re constantly buying inventory and still never have enough?
Let us help you find out why—and set up a system that works.
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