| 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. |