SALON BENCHMARKS

Larry, I've been looking for some salon benchmarks. Do you have any information that you could pass along to me?

Ruth

Ruth, benchmarks vary depending on different things such as your location. But, here are some numbers from the Salon Today Top 200 that may be of help to you.

Percentage of Total Salon Expenses

• Labor 47%
• Supplies 11%
• Profit 7%
• Taxes 5%
• Owner Comp 4%
• Ad/Mkt 3%
• Benefits 2%
• Insurance 2%
• Utilities 2%
• Prof Svs 2%
• Comm 1%
• Other 6%

Services Breakdown Percentage of $

• Color 32%
• Cutting 31%
• Retail 16%
• Skin 12%
• Nails 6%
• Chemical 3%

Average stylist - $47,640

FOLLOW-UP ON MANAGEMENT TOOLS NEEDED FOR A SUCCESSFUL BUSINESS

I posted an entry on November 10th on important tools for salon owners. Other than good financial statements, I feel that it's important to have excellent software in place, and to know how to use it.

Ken Cassidy, noted educator, followed up with his recommendations. I agree with his comments which are listed below.

"Larry, I would have also said that it's important to have a good industry contract for my employees, along with a policy and procedural manual to guide and direct my staff for success. In the booth arena I think it's important to have an Industry Space Sub Lease if salon or spa owners do not own the business. If they own the building where their salon or spa is located, then it would be a Space Lease. And let’s not forget management forms to guide your staff regardless of what title you have bestowed upon them." ~Ken Cassidy

$800 HAIRCUT

Check out this article that appeared in a recent article in MSN Money by Rachel Lehmann-Haupt. Make sure that you check out the videos. Microsoft Money Article