3 Important Questions About Your Bottom Line

It’s time to stop procrastinating, face your fears, shape up that business, and “knock out” all of your worries.

We’re gonna get down and dirty and talk about your bottom line.

1. Do you have a system for inventory control?

If you answered no to this question, you must have thousands of dollars of inventory collecting dust on your shelves. You are spending more on buying retail products than you should be. You should not be spending more than 50% of your total retail sales buying products for retail.

2. Do you know how much money you should be spending monthly buying back bar products in relation to your service sales?

If you are not controlling your back bar spending you better think about raising your prices NOW, especially your chemical service prices. You should not be spending more than 6-8% of your service sales on buying back bar products. These products include colour, peroxide, foils, cotton, perm and relaxing solutions, massage oils, hair/spa products for your staff to use on your guests, etc.

3. Does your salon have a budget?

If you answered no to this question, you can not possibly set service and retail goals for your team because you don’t know how much money the business needs to make! You can’t plan your marketing because you don’t know how much you are able to allocate to advertising and promotions. You can’t hire new staff because you honestly don’t know if (and what) you can afford to pay them.

If you would like to know more about cosmetology industry benchmarks (goals for best practices), retail and inventory control, and/or budgeting please call us at In The Black 604-314-4981.