Inventory & Retail Store Management for Yoga Studios: Boosting Revenue the Mindful Way

By Dennis Bluthardt, Namaste Studios®

In the past, yoga studios have primarily focused on classes and workshops, but the integration of retail is another line of business that complements the modern yoga studio environment. Yoga apparel, props, and other yoga-related products are part of the lifestyle/consumer habits of this spiritually and health-minded audience. It makes sense from a yogic perspective to diversify how yoga students are served, as well as diversify income generation.

Brands’ retail distribution via yoga studios is rapidly growing. It’s a retail endeavor very concerned with inventory productivity. As a balancing act of acquiring only the necessary/appropriate volume and diversity of products to satisfy traffic, but also to have brands/products be spiritual extensions of what a particular brand is projecting of its studio experience/identity.

Retailing will enable students to custom-select products (with their purchase dollars) that align with the frequency of their studio visits. Therefore, retailing within studios enhances both studios’ revenue behaviors (as does the sale of these items) and the projected “guidance” the studio wishes to convey (it’s a “them” class scenario), as well as a broader retail product-category selling perspective and a brand selling perspective.

Why Retail Matters in a Yoga Studio

Wellness products selected by faculty can enhance students’ experiences. Such products, like mindfulness journals, can help in moments of high stress. We offer products like herbal tea. Will this tea cure anything? No. However, in a moment when a student is feeling overwhelmed, taking a few moments to sit down, breathe, and drink a soothing cup of tea can be a helpful act. 

Not only do these products serve practical functions, but they also send a message to students: “Your well-being is important to us.” In this way, the products foster a sense of belonging among students and signal that they have the support of the campus community.

Brand merchandise is crucial to the financial well-being of institutions of higher education. 

When a student invests in a representational good, they not only make a financial commitment but also engage in a form of identity construction, namely, the act of dressing as a member of the Wolverines or the Crimson Tide, or of carrying a tote emblazoned with the University of Pennsylvania’s name. And as any institution will tell you, the more visible its brand is, the better. 

They live by the values of their school as they put on their gear. The connection can be made even more profound, though, if the merchandise is community-minded. Workshops, for instance, could be events where students collaborate and engage with or without branded gear.

It is crucial to expand the revenue base beyond traditional class packages and membership sales. 

Selling carefully chosen wellness products and staging events that foster community can generate new income while also enhancing the student experience. This is not just a nice-to-have; it is both a support for financial stability and an enrichment of the student experience that is deeply in line with the emerging demand from students for resources that help them achieve the sort of holistic wellness that a more diverse set of income streams might make possible.

Popular Retail Items Yoga Studios Can Offer

The right props can take your yoga to new heights. Essentials like mats, blocks, and straps not only offer support and stability, but they also help guide us into proper alignment. High-quality mats give us a little something extra to hang on to, a bit of grip, and we’d also be wrong not to point out the cushioning, too. And blocks and straps? Those tools only help to make each pose possible! Without your trusty mat, you might have given up trying to lower down through Chaturanga (with a bit of resistance to the fall), from the high plank, knowing all too well you’d have to lie face down on the cold (really, when was the last time they cleaned that?), hard studio floor. Blocks help, too! And straps can get you into poses you may never have thought possible (or accessible). Next up: the clothes. We could go with a “less is more” meme here, but it’s the opposite in yoga. Yoga wear and the community- and culture-aspiring racerback with the forward-bending Om-moji are the defining features of your involvement in the yoga “lifestyle.” 

It’s all organic cotton, such as the “Earth-friendly” recycled towel from Vinyasa Matt, or even yoga capris from the shop down on the main drag through town. Yet, every time we see the latest gear line, or the neatest designs, one thing comes to every yogi’s mind: How can they wear that? Where is she going to “stick” the crab in Crow?

Inventory Management Best Practices

Keeping track of your items may be the difference between a business that is optimized and profitable and one that isn’t. And when your clients check out, it’s nearly impossible to keep track of your items across all online channels, storefronts, and third-party sites, such as Groupon, Yelp, or ClassPass. That’s why you need an advanced POS system that does all the heavy lifting for you. Like a good assistant, our POS system never loses track of your items. Everything is in real-time. Run out of an item, and you can see it. Another item isn’t selling as well, and our reports will reflect that as well. 

Classification of items is another great way to keep your inventory organized.

Seasonal: If your sales are seasonal, this category is for you. Group all your spooky items together for Halloween, holiday items for December, or Valentine’s Day items in February.

Brands: Group certain brands together. Many of our customers receive items from a distributor and group them by manufacturer/brand.

Other: Group your items any way you want! Regularly taking inventory (for damage, item expiry, theft, etc.) can be costly for your business. And that’s WITHOUT the cost of goods sold items you sold to clients or used to perform services.

Tips for Running a Profitable In-Studio or Online Retail Store

A tactic is to start with a few high-margin goods to see if they are in demand. If they do, add more. Depending on your industry, identifying top sellers may be challenging. Therefore, start with a few products that have the highest margin. Feasibly manage your inventory by offering a few products to see if you have any bites. (If a company has two pairs of socks, they will probably be more inclined to get rid of the more expensive pair first…. Point two may backfire.)

The goal is to get started and learn which products people want to buy first, then add more to your site as you go.

Most product startups choose to run surveys and ask people to select which items they like best to guide their initial product selection. If it’s good enough for them, do the same. Any new features, such as colors, styles, garments, and items, were all born from some feedback loop I received from a past customer. Use your customers (lovingly) to help guide what your next hot sellers will be. Competent developers use customer feedback to guide them in creating new products that they already know will sell, as they gauge demand through their feedback loop.

This should be a theme throughout your business. If you define a trend or a hot seller, then double down the next month on buying a hot-selling item that only costs you $50 on Alibaba, you’re going to grow very fast.

Integrated POS & Inventory Tools for Yoga Studios

“WellnessLiving POS is built to provide all the tools you need to manage your business in one simple, easy-to-use system. That means less time shifting between different platforms and software, and more time seeing to your clients. WellnessLiving was designed from the ground up with your class-based schedule in mind.”

Avoiding Common Retail Mistakes

It can be tempting for retailers to stock products that are currently on-trend. Still, this strategy can be disastrous because what’s cool one day may not be fabulous the next, leaving you with unsellable products that eat up valuable overhead, particularly if they are the types of items that become less “cool” the more they are seen to be sold. Stick to purchasing a select few “on-trend” items and those you know for sure will mesh well with your brand’s image. This will free up space, resources, and minimize the risk of over-purchasing.

Students are happy to come into the studio every day, and we are pleased to have them! Everyone wins.

So, if you haven’t yet organized the retail section of your studio, be sure to download your free ‘Retail Starter Kit Checklist’ today!  There are a few great little nuggets to help get you started. 

For more comprehensive, one-on-one info, BOOK A STUDIO STRATEGY CONSULTATION CALL with me! We’ll discuss how your specific studio can make better strategic use of programs focused on driving the two top financial success-oriented KPIs and help you get started.

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