Cosmetics and personal care: shades, expiry and salon accounts

Who sells to whom

Large personal care companies sell through FMCG-style distributors who supply general stores, chemists and cosmetic shops on fixed beats. Premium and professional brands appoint fewer distributors, who supply beauty stores, departmental stores and salons. Salon-only professional ranges (hair colour, treatments, skin care) are sold to salons and parlours, often with training and demonstrations from the brand. Imported and niche brands come through importers and online-first sellers.

A cosmetic store or beauty retailer buys from several distributors, stocks hundreds of SKUs, and sells to walk-in customers, many of whom have already researched products on their phones.

Shades, sizes and launches

A single lipstick range can have dozens of shades; a foundation range, several shades in two or three sizes; hair colour, many shade numbers. Each is a separate SKU. Brands launch new ranges and discontinue old ones often, and retailers need to know quickly which shades are moving and which are stuck.

Set up items in Tally with brand as a category and product range as a stock group, and keep the shade code in the item name so staff can find it. Review shade-level sales monthly; a range that sells well overall can still have shades that never move. See stock groups and categories.

Expiry, testers and samples

Most cosmetics and toiletries carry a manufacturing date and either an expiry date or a period-after-opening. Products sitting too long lose value, and customers check dates. Sell older batches first, and review slow items every quarter so they can be returned to the distributor under the company's policy, offered in combos, or written off before they expire.

Testers and samples are a hidden cost. A store may open a tester of every shade on display, and brands may or may not supply them free. Record testers you open from saleable stock as a stock adjustment, and samples received free as zero-value items if your accountant agrees, so stock in Tally matches the shelf.

Schemes, offers and margins

The trade is full of offers: buy one get one, free gift with purchase, combo packs, festival discounts, and distributor-level target schemes. Some are funded by the brand, some by the distributor or retailer. If you cannot tell who funded each discount, you cannot tell your real margin. Keep a list of running offers with the funding source and the claim procedure, and match brand credit notes against claims. Our guide on GST on discounts and schemes covers how these affect tax on the bill.

Salons and professional buyers

Salons are a distinct customer group. They buy professional products in bulk sizes, take credit, and often expect free training or demonstration support. Many pay irregularly because their own income is daily and seasonal, peaking in wedding and festival seasons. Set clear credit limits, bill salons separately from retail, and share statements regularly. A salon that uses a product range daily is valuable, so the aim is a regular payment rhythm, not an argument.

GST points

Cosmetics, toiletries, hair care, oral care and related products fall under different HSN codes, and several rates in this category have been revised, so confirm the current rate for each item on the GST portal. Free gifts and combo packs have specific GST treatment; see the guide on free samples and gifts and agree the method with your accountant. Salon services are separate from product sales if you run both. This is general information, not tax advice.

How Cashflow OS supports cosmetics businesses

Cashflow OS syncs your TallyPrime books. Barcodes and labels per item help billing at a busy counter, and the phone camera can scan them. Item photos and an online catalogue let salons and retailers browse ranges and send enquiries on WhatsApp; an online store at shop.cashflowos.in can sell to consumers with your own payment gateway. Distributors get price lists by customer type, a staff app for beats, and salon outstanding on the phone. Batch and expiry details remain in Tally if you keep them there. See online catalogue.