Calculating your salon's stock value: work it out yourself with an example
Stock that doesn't sell costs you more than shelf space. You calculate stock value by multiplying the number of units of each product by its average purchase cost and adding the amounts up. Below is an example you can repeat with your own numbers.
Why calculate stock value?
Stock value shows how much money is tied up in unsold products. It supports decisions: what to reorder, what to pause and what to offer differently.
During a stock count, count the products in your salon and storeroom and compare them with your stock records. You see straight away where the physical count and your data differ. To make the counting lighter, read automating salon stocktaking.
Worked example: from count to stock value
Say you count four products on your reference date. You use the purchase price excl. VAT:
- Shampoo: 24 units × €6.50 = €156.00 - Conditioner: 18 units × €7.20 = €129.60 - Styling spray: 10 units × €9.00 = €90.00 - Serum: 6 units × €14.00 = €84.00
Total: 156.00 + 129.60 + 90.00 + 84.00 = €459.60 stock value.
Average stock value: if opening stock was €480 and closing stock €440, the average is (480 + 440) / 2 = €460. For three months, add the monthly values and divide by three.
Turnover: take retail sales of €3,600 a year at selling prices and an average stock of €1,200 at selling prices. Turnover is 3,600 / 1,200 = 3 times a year. Use the same period for both figures and compare mainly with earlier periods of your own salon. There is no fixed salon norm.
Cost price, selling price and valuation method
For the balance sheet value, purchase cost without VAT is usually the workable basis. Use selling prices to compare turnover with revenue. For what the Dutch tax authority says, see their page on valuing stock.
The cost method decides which costs you assign to items sold. FIFO uses the oldest purchase costs first, LIFO the newest. With specific identification you use the actual cost of the individual product, with the weighted average you spread the total purchase value over the number of units. Pick the method that fits your bookkeeping and apply it consistently.
Ageing, write-downs and slow movers
Stock costs money as long as it sits there: capital, space, and the risk of ageing, theft or damage. As a rule of thumb, risk and ageing costs are estimated at 2 to 6% of stock value a year. Treat that as a prompt to review products, not an automatic amount. On €459.60 that would be roughly €9 to €28 a year.
Writing down means lowering the recorded value when a product is worth less, for example with a leaking pack. Note product, quantity, condition and reason, so you can see at the next count why the value changed.
Slow mover check: suppose the serum was last sold 200 days ago. A limit of 180 days is an example for spotting slow movers, not an automatic write-off rule. Here €84.00 is tied up in six bottles. You then lower the next order, skip it for now or offer the rest differently. With inventory management in Salonnare you follow product movements and see sooner what keeps sitting there.
Stock and checkout in one system
Salonnare combines a checkout with VAT handling, inventory management and client records in one place. You can put sales next to stock without mixing up revenue and stock value. Valuation stays based on purchase cost.
Schedule a fixed moment, for example every quarter, to update quantities and link notable changes to a concrete step. The free plan costs €0 a month; start free and see whether it fits how you work.
Get a grip on stock and sales
Start with Salonnare's free plan and keep checkout, stock and client data together. Cancel monthly.
Start freeFrequently asked questions
How do you calculate the stock value of a salon?
Do a full count on a fixed reference date, multiply each product's quantity by its average purchase cost and add everything up. Group items, for example into retail products and salon use, and explain big differences from earlier counts through sales, use, returns or damage.
What is the difference between stock costs and stock value?
Stock value is an amount on a reference date. Stock costs describe the financial effect of holding stock over a period, such as capital, space and ageing. Keep the snapshot and the period costs separate in your reporting.
How do you calculate stock value per product and item number?
Register each variant, such as different sizes, with its own item number. That keeps quantities and purchase data tied to the right version. Record corrections and returns on the item itself and use a consistent valuation method.