![]() So, let’s say you spent $1,000 and your revenue is $6,000. (Cost for back bar supplies) / (Total monthly revenue) = % supply cost Take what you spend on back bar supplies only, and divide that by your total monthly revenue. This is for necessary salon items like lightener, bowls, brushes, gallons or liters of shampoo, etc - anything you use in the back of the house. The budget and benchmark for suite owners and renters on back bar supplies is 15%. This is the area where just about every hair stylist or salon owner tends to overspend. Let’s talk money, honey! Spend it, save it, hustle for it. Become a social media influencer and get paid to postįor now, I would love for you to get back into your salon and run this calculation just to see where you fall.Use a new marketing strategy for your salon to build you brand (and earn more $$$).Reduce cancelations and no-show appointments.If you’re already in a lease, the only way to reduce your rent percentage is to increase your revenue. Keep in mind: every time you exceed that 12% budget and benchmark, you chip away at your profit. In some cases, hair stylists run their numbers only to find out they are paying 20-25% of their revenue into rent. This is one area that I see so many stylists get into trouble. You need to bring in $10,000 every month in revenue to hit your rent goal. If you’re already renting, you can also calculate going the other direction: If you’re looking into new spaces, you can use your monthly revenue to set yourself a budget. If you take one thing away from this article, take this:Īs a suite owner or renter in the beauty industry, your target rent (or mortgage) per month should be 12% of your total revenue. Hair Salon Budget Plans: 3 Calculations to Change Your Business 1. I promise, being better about your budget doesn’t need to be complicated. That’s why I want to share my three simple calculations that will literally change the way you think about your salon budget. ![]() In most cases, I found that people avoid thinking about their salon’s budget only because they weren’t taught what to pay attention to or what the benchmarks are. It can be scary, especially if you are new to looking at them.īut as entrepreneur Marcos Lemonis says, “If you don’t know your numbers, you don’t know your business.” So many stylists and beauty professionals shy away from the numbers in their businesses. It’s imperative for you to spend as much time working on your salon’s budget as you do working behind the chair. My dearest salon suite owners and booth renters: ![]()
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