Valor de stock

Tips for maximising your stock value with Kativa’s hair care routines

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What is the stock value?

The stock value is the result of assigning a monetary value to a company’s inventory or stock. This value may vary depending on the valuation method used. Besides, it has accounting and tax implications.

Some of the most common valuation methods are weighted average price (WAP), first-in, first-out (FIFO) and last-in, first-out (LIFO).

These are based on different criteria which determine the cost of products purchased and sold. Stock valuation is important for knowing the real value of the company’s assets, control the optimal level of inventory, and optimise the profitability of the business. profitability of the business.

The importance of managing for maximum stock value of Hair Care products

A good and an optimal stock valuation go hand in hand, which translates into advantages such as:

  • To ensure customer customer satisfaction and loyaltyby offering them the products they want at the right time.
  • Reduce costs of storage, transportation and obsolescence storage, transportation and obsolescence by avoiding storing more products than needed, products with an expiration date, or that go out of style rapidly.
  • Maximise benefitsby taking advantage of sales opportunitiesandminimising losses caused by breakage or theft.

The stock management is particularly important in the Hair Care sector, as these products have certain characteristics that influence their demand and turnover:

  • They are products with high variety and segmentationThis implies having a wide range adapted to the preferences and needs of each customer.
  • These are products with a high rotation due to trends and seasonality, so it’s necessary to keep an eye to changes inand seasonality, so it is necessary to be attentive to changes in consumer and tastes of consumers so, you’re able to adapt your stock quickly.and adapt our stock to them.
  • These are products with highlevel of competition and low differentiation, which meansThis means being ahead of the actions and prices of our competitors and offering added value to our customers.

What factors should you assess to determine the stock value?

The key factors influencing stock valuation are:

  • Acquisition costs includes the purchase price, transportation costs and any other expenses related to the acquisition.
  • Discounts and salesAny incentives received through merchandising should be taken into account when valuing inventory.
  • ObsolescenceYou should evaluate whether any inventory has lost value due to changes in demand or technological advances.
  • DamageDamaged products may require special valuation and a reduction in their accountant value.
  • Market valueMarket value: especially if it’s lower than the acquisition cost.
  • Inventory turnoverThe speed with which you sell or use your inventory can also influence its valuation. Products held in stock for longer periods may be subject to changes in valuation.
  • Regulations and tax and accounting regulations may have specific requirements for inventory valuation.
  • The internal policies such as the choice of valuation method and frequency of adjustments will also affect inventory valuation.

Tools and strategies to maximise your stock value

There are several tools and strategies you can use to improve your Hair Care stock management. Some of them are:

Automation software

There are technological solutions that allow us to control and manage our inventory in an automated way through computer systems that record incoming and outgoing products, calculate the optimal parameters for our stock, generate alerts and reports, etc.

These solutions save us time and save time and resources, increase accuracy and efficiency, and facilitate decision-making.

Forecast analysis based on AI

They allow us to predict future demand for our Hair Care products, using algorithms that analyse historical and current data, market trends, customer behavior, etc.

They allow us to anticipate the needs of our customers, adapt our stock to them, and take advantage of sales opportunities..

ABC Categorisation

It’s a technique that consists of classifying our Hair Care products according to their relative importance to our business, for example, in regard to the value or profitability they generate.

The ABC classification is based on the Pareto principle, which states that 20% of the products account for 80% of the value or profitability of our business. Thus, we can split our products into three categories:

  • Category A: These are the most important products, representing 20% of the inventory and 80% of the value or profitability. They require more careful management and a higher level of availability.
  • Category B: Intermediate products, which represent 30% of the inventory and 15% of the value or profitability. They require moderate management and a medium level of availability.
  • Category C: These are the least important products, representing 50% of the inventory and 5% of the value or profitability. They require lower management and level of availability.

ABC categorisation allows us to assign different levels of importance and resources to each product category, thus optimising our stock and profitability.

Having the right partner

A partner that brings the right products, expertise and market knowledge can help retailers anticipate demand, plan purchases, adjust inventory levels and avoid overstocking or out-of-stocks.

A partner with the right product portfolio and strategic vision can advise retailers on best practices and techniques to optimise inventory management. can advise retailers on best practices and techniques to optimize inventory management.

This is where Starbrands and Kativa come into play Starbrand, which ensures a revaluation of your stock through measures such as:

  • High rotation on your shelves.
  • Offers and promotions specials.
  • Exclusive newsletters and product demos.
  • Promotions, banners, and POP
  • Ongoing consulting and training.

In short, these are some of the tools and strategies you can use to improve your stock of Hair Care products and give them more value. Keep in mind that there is no single, definitive solution to this challenge; you must adapt to the particularities and needs of your business, market, and customers.

Of course, you should always count on a partner that is up to the task, such as Starbrands through its top brand, Kativa. Want to know more about how we can help you? Contact us and we will and we will give you the details of our partner program.


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