In a modern world confronted with political turmoil, natural disasters and more, supply chain disruption is an inevitable business challenge spa and salon owners are likely to encounter. Not only will such disruption lead to a shortage of goods, a break in the supply chain can also lead to unhappy customers, declining business and more. As salon and spa leaders work through the strategic projection process for 2025, consider adding supply chain disruption management to any contingency or emergency action plan.
Putting a plan in place
While salons and spas are primarily service-driven businesses, their offerings depend on a steady supply of products such as shampoos, hair color, nail polish, and body scrubs. When those products are not available, the level of service a beautician can provide declines. Salon and spa owners adding supply chain disruption to their contingency plan will need to understand those risks and others they may face. A professional who understands the space, such as a specialty insurer, can help reveal the risks and suggest mitigation strategies such as:
Product Management: Production disturbance, transportation delay, raw material shortages and more can lead to a scarcity of the products that stylists, nail artists, and others rely on. Such shortages can create longer lead times to replenish inventory and increase prices. Supply chain shortages create an opening for counterfeit and potentially hazardous products to enter the market, jeopardizing both a salon or spa’s reputation and client safety.
When planning for business interruption, salon and spa owners should consider collaborating with different suppliers to diversify their options and ensure backup solutions. Beauty professionals can also adopt technology such as enterprise resources planners (ERPs) to monitor inventory and ensure it does not get so low that a supply chain interruption will disrupt the business.
Sanitization Prioritization: Salons and spas must meet strict sanitation standards at the federal, state, and local levels. If supply chain issues cause a shortage of cleaning supplies, such as decontaminant, it can lead to a fine or even the temporary shutdown of the business.
Diversification and monitoring can also be vital tools to ensure a beauty business does not run out of cleaning supplies in addition to maintaining inventory. If such supplies do become unavailable, it is important to understand alternative solutions and have the resources on hand to make them. Natural alternatives such as Ship-Shape or On Nature’s Side may be more readily available as well.
Client Dissatisfaction: Supply chain issues can pose a real risk to client satisfaction, and lead to a decline in business. For example, if products are not available for a client’s favorite service, they may leave a bad review. Alternatively, if supply chain shortages lead to a salon or spa needing to increase their prices, clients may look elsewhere for lower rates.
When anticipating business interruption due to supply chain shortages, client management is key. Salon and spa owners should consider communicating early and often about potential shortages or price increases. Sharing this information in a proactive and transparent manner can build trust with the client and give them time to accept potential changes. If possible, consider offering alternatives as well. While a paraffin wax pedicure may not be available due to shortages, a client may learn they like green tea pedicures more when given the choice.
When a supply chain shortage hits, panic can follow for the unprepared. Fortunately, salon and spa owners who understand that disruptions are inevitable—and proactively work with knowledgeable partners while implementing preparedness measures—are far less likely to feel the impact when challenges arise.
Kathy Lopez, Account Manager for SASSI, the Salon and Spa Specialty Insurance program at Brownyard Group. She can be reached at klopez@brownyard.com.
