Ask Experts Questions for FREE Help!
  Advanced
Register  |  Log in  
   Ask    
 Answer  
  Help  

Ask QuestionsprogressAnswer QuestionsprogressBuild ReputationprogressBecome an Expert
 
Free Answers in 3 Easy Steps

Register Now
3 Steps

At Ask Me Help Desk you can ask questions in any topic and have them answered for free by our experts. To ask questions or participate in answering them you must register for a free account. By registering you will be able to:
  • Get free answers from experts in any of our 300+ topics.
  • Accept money for answers that you provide.
  • Communicate privately with other members (PM).
  • See fewer ads.

Home > Health & Wellness > Beauty   »   How to determine percentage for employees

 
Question Tools Search this Question Display Modes
Question
 
 
#1  
Old Sep 18, 2006, 06:03 PM
cameron
New Member
cameron is offline
 
Join Date: Sep 2006
Posts: 2
cameron See this member's comment history on his/her Profile page.
How to determine percentage for employees

I have just opened a hair & nail salon and need help with percentages. Right now I am charging 60% - 40%; meaning the Shop gets 40% of what the stylists make and the keep 60% plus tips. But, my problem now is this; if I buy the shampoo, conditioner, relaxers and perms; should I then charge 50% & 50% percent? Also, I am supplying all the products and implements and nail color and soaking machines and pedicure chairs which use lots of electricity. So please tell me what most Salons and Nail Salons would charge I don't seem to be getting ahead at all. Am I under-charging myself. I don't want to scare of my stylists or my nail techs; but I don't want to have to close down because I can't pay the bills. I live in a small city, nothing like New York or california or Chicago; but I need to be able to pay the bills. Need answers quickly!!!

Reply With Quote
 
     

Answers
 
 
Old Sep 19, 2006, 09:14 AM   #2  
paranoid_gurl
New Member
paranoid_gurl is offline
 
Join Date: Sep 2006
Posts: 3
paranoid_gurl See this member's comment history on his/her Profile page.
most salons I know charge a chair rental and automatically charge employees a certain amount, I don't know what it is where I am but you could go into or call a salon and ask them what they charge
  Reply With Quote
 
     
 
 
Old Sep 19, 2006, 07:14 PM   #3  
PrettyLady
-
PrettyLady is offline
 
PrettyLady's Avatar
 
Join Date: Oct 2005
Location: NJ & NY
Posts: 2,776
PrettyLady See this member's comment history on his/her Profile page.PrettyLady See this member's comment history on his/her Profile page.PrettyLady See this member's comment history on his/her Profile page.PrettyLady See this member's comment history on his/her Profile page.
Since I've studied about salon business in cosmetology school, I will provide some information.

Here are the average Expenses for salons in the United Sates.
(Based on total gross income)

Percent
Salaries and commission (include payroll taxes) 53.5
Rent.............................................. ............ 13
Supplies.......................................... ........... 5
Advertising....................................... .......... 3
Depreciation...................................... ......... 3
Laundry........................................... .......... 1
Cleaning.......................................... .......... 1
Lighting and power....................................... 1
Repairs........................................... ........... 1.5
Insurance......................................... ......... .75
Telephone......................................... ........ .75
Miscellaneous..................................... ........ 1.5
Total expenses.......................................... . 85
Net profit............................................ ....... 15
.................................................. .............. 100%

As you can see, the largest expense items are salaries, rent, supplies and advertising.

Good business operation requires that you have a simple and sufficient record system. So try to keep weekly records, daily records, purchase and inventory records, and service records. This will determine income, expense, profits, or loss.

Cost of services is generally established according to the location of the salon and the type of clientele you expect to serve. A price list should be posted in a place where it can be seen by all clients. You can also go to other salons and check out their price list.
  Reply With Quote
 
     


Question Tools Search this Question
Search this Question:

Advanced Search
Display Modes

 
Similar Sponsors

Similar Questions
Question Asker Topic Answers Last Post
Safe Percentage Of Hydroquinone Lady C Skin Lightening 5 Nov 25, 2007 04:39 AM
How to determine which fuse size i need? CroCivic91 Electrical & Lighting 2 Feb 26, 2006 03:51 PM
percentage error bluedicius Mathematics 1 Jan 7, 2005 07:14 PM
how to determine a fair price for a business thecrone Corporate Law 1 Jun 9, 2004 10:39 AM
determine batch or interactive amitkapila Other Computers 0 Sep 1, 2003 07:17 AM




Copyright ©2003 - 2007, Ask Me Help Desk.
All times are GMT -8. The time now is 12:54 AM.

Content Relevant URLs by vBSEO 3.0.0 RC6 © 2006, Crawlability, Inc.