*5 min read

[Part 3 of 3] In this blog series, we will help you avoid the same mistakes that so many salons make, over and over again. How? By giving you the tools and instructions to do what most businesses pay thousands of dollars for – an individualised, in-depth review of YOUR salon. This will allow you to spot problems and begin solving the most important ones straight away.

This article is Part 3, so if you are interested in making sure you are in the top 20% of salons, head to “Only 20% Of Salons Succeed: Are You One Of Them?”where we began this blog series.


Owning your numbers

Following on from our second article “Only 20% Of Salons Succeed: Calculate Your Chances”, we are now going to go through how you can interpret and use the data from the salon review calculator. We won’t be able to help you understand every single bit of data in this article, but we have picked two of the most important things you need to take away from the results. If you want more help, it’s time to sign up for the Free Trial Week of the Salon Success program, where we’ll walk you through the calculator results and also show you how to setup and grow your customer database. 


Finding your ‘total average cost per service’

This measurement takes all of the outgoings for your salon per month and then divides that number by the current number of services you complete per month.


What does this mean? This is a really important measurement, as it shows us how much it costs us every time a customer sits down. This can sometimes be a real wake up call, and if (like the example above) this is too high, then it can make it a real struggle to make ends meet. If this number is too high, what should your next steps be?

  1. Get more customers, or get your current customers to come back more often. This is sometimes very hard, because there aren’t enough customers actually getting services. It may seem obvious, but this then has to become your number one priority. Luckily, there are loads of ways to achieve this (find out more).
  2. Reduce your outgoings. This is a big one, and each person will be able to tackle this differently. If your rent is high, think about speaking with your landlord and asking for a concession. If you are purchasing products, speak with your supplier about trialing new stock (freely) or a discount as you’ve been a customer for a while. This can even extend to you making your own cleaning products (very easy to do!) or stopping your magazine subscriptions. With this, every little bit counts and it really has to be something you tackle on every front, across the board. The trick is, to do so without sacrificing what makes your salon special. 


What are your ‘break-even number of services’

What does this mean? This is the number of services (with your current prices & outgoings) that you would need in order to break even. In financial speak, this means to pay yourself and all the bills, but not make any profit on top. This is a good point to be at, in comparison to losing money, especially if you have staff.


You can look at this number in two ways. You can see what happens to this figure if you begin to reduce overheads and increase customer spend. (Trial this every 6 months per customer. Don’t always try to get loads of money out of customers, otherwise, they’ll never come back!) 

A really great way to use your ‘break-even number of services’ number, is to treat it as either:

  1. A goal: if you are not quite there yet, this number is something to aim at. A figure out can work towards, then fly past.
  2. A marker: especially if you are already past this number. The further you get past this number, the more successful your salon is.

If you want to give your staff members more accountability, this is a great number to talk about with them (but only if you think they could manage that type of responsibility).

Now we’ve only mentioned two of the most important takeaways that this Salon Review gives you, but there is so much more to learn. If you’re interested in finding out more, have any questions, or simply want to get the free Salon Review, click here to claim your free trial of the Salon Success Progam.

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