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SalonStocker
SalonStockerAU
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Money4 Mar 2026 · 9 min read

Why salons overpay on supplies

— and how to stop the bleeding.

Based on Australian ATO benchmarks, many salons are overspending by 20–30% on supplies. This guide reveals the hidden profit leaks and actionable optimisation strategies.

Caroline · Co-founder
11–18%
of turnover on supplies — the ATO benchmark
20–24%
where many salons actually sit
$12k
lost per extra 2%, on $600k turnover
6
avoidable cost leaks, each with a fix
Coin being dropped into a piggy bank, representing supply-cost savings

The supplies that don't get counted: colour, developer, foils, gloves, retail stock, coffee cups.

Salons overpay on supplies because ordering from 3–5 disconnected suppliers hides price differences, triggers emergency top-ups, and buries spend that should sit at 11–18% of turnover under the ATO Small Business Benchmarks (2023–24) — many salons actually run at 20–24%. Stopping the bleeding means consolidating orders, setting stock alerts, and tracking spend in one place.

Rent, wages, and utilities are predictable. But colour tubes, developers, gloves, foils, and even coffee cups quietly eat away at profit when nobody's watching the total. Recent price hikes — a weaker AUD and a 3.7% jump in manufacturing input prices (ABS Producer Price Indexes) — have only made the gap between 11–18% and where most salons actually sit wider.

Key takeaways
01Australian salons should spend 11–18% of turnover on supplies — but salons ordering from 3–5 separate suppliers without spend visibility typically overpay by 20–30%.
02A salon turning over $400,000 a year can save $8,000 annually just by reducing supply costs from 15% to 13% of turnover.
03Emergency top-ups from stockouts add 10–15% to supply costs — consolidating orders into one platform with restock reminders eliminates most of these.
01

The quiet profit leak you didn't notice

Salon owners are often busy making sure their clients look great and feel happy, which means keeping track of every little cost can be difficult. However, there are several common inventory mistakes salons make when buying supplies that quietly increase their expenses.

Pro tip
Track your spending.

Many salons unknowingly lose thousands each year due to inefficient supply management. A small adjustment in your purchasing habits can lead to significant savings.

02

Six avoidable costs

What each one looks like on an ordinary week — and what fixes it.

01
Ordering from many suppliers

Buying from a few different suppliers, each with different prices and ordering systems, you're likely missing out on better deals.

Fix with · Instant price comparison
25–35%
overspend
02
Emergency top-ups

Friday 4pm courier charges because colour tubes ran out.

Fix with · Predictive alerts & auto-reorder
10–15%
overspend
03
MOQ + shipping traps

"Free freight over $350" forces you to load up on slow movers.

Fix with · Easy ordering from multiple suppliers in one click
8–12%
overspend
04
Missed deals or rebates

You miss quarterly spend targets or manufacturer cashbacks.

Fix with · Automated deals tracker & reminders
3–7%
overspend
05
Inventory graveyards

Overstocked seasonal shades expire on the shelf.

Fix with · Usage analytics
5–10%
overspend
06
Currency & price creep

March-2025 colour-tube list prices up another 4–6%.

Fix with · Price alerts
Varies
overspend

*Indicative ranges based on industry observations across Australian salons. Base cost benchmarks from ATO Small Business Benchmarks (2023–24).

03

How much money can you save?

Let's look at a simple example. Hairdressers typically spend 11–18% of turnover on supplies. For a salon earning $400,000 per year at 15%, that's $60,000 each year. Cut it to 13% by reducing emergency orders and overstocking, and you'll spend $52,000 instead — an $8,000 saving you can put back into the business or use to reward your team.

Try it with your numbers
Drag to set annual turnover
$400k
$150k$1.5m
At 15% today
$60,000
At 13% consolidated
$52,000
Back in your pocket
$8,000
every year
04

How we can solve this

Imagine a streamlined solution that helps solve all these hidden cost issues easily, specifically for salons. Here's how you can stop the bleeding and optimise your purchases.

01
Instant price checks

Quickly see the best prices from all your suppliers in one place, ensuring you always get the best deal. It also streamlines ordering, saving time and reducing errors.

02
Automatic stock alerts

Get warned before you run out of products, avoiding expensive emergency orders. Learn more about automated reordering systems.

03
Easy ordering

Order multiple brands from one place to meet free shipping requirements without extra stock.

04
Automated rebate & discount tracking

Never miss out on supplier rebates or manufacturer cashbacks again. Track purchases against spend targets and get reminded of upcoming rebate opportunities.

05
Analytics

A simple tool that predicts which products you actually need helps prevent overstocking, keeping your shelves tidy and saving money.

06
Price alerts

Stay ahead of price increases and currency fluctuations. Stock up before a price hike or explore alternative suppliers if costs become prohibitive.

07
Supplier relationship management

Get insights into your purchasing history with each supplier, helping you negotiate better terms and build long-term partnerships. Also watch for hidden fees on invoices.

05

Take back control of your salon expenses, before the next price hike

Every dollar counts when running a successful salon. While price increases from suppliers are unavoidable, making small changes to how you order can protect your salon from unnecessary expenses. This isn't about complicated business strategies — it's about making small, simple changes that add up to big savings. Using tools designed for salon owners can simplify ordering and help manage costs more effectively.

The money you save can help your salon grow, reward your staff, or simply make running your business less stressful. Even small savings make a big difference in the long run.

Stop overspending. Start saving.

Our ordering platform is built for salons to find the best prices, prevent wasteful spending, and simplify inventory.

Signing up is free, takes less than 5 minutes, and is the first step towards a more profitable business.

Start saving for freeSee how ordering worksFree for salons · No card · Your suppliers unchanged

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