Is this your new year financial resolution?

22 years of asking salon owners-

do you know what your overheads are?

to the dollar?

some do, one or two i’ve met could tell you their cost per foil, based on the time it takes her to apply one foil…

others after 20 years still don’t know…

they don’t know what it costs to open their doors.

is that you?

or have you got a notebook with all your overheads, expenses, dreams, goals and ideas? 

is 2025 the year you take the reigns and face your business costings- the only reason anyone doesn’t is fear to know…

or is 2025 the year you are creating more goals to keep moving your business forward? 

we open our businesses with a dream..that gets clouded by reality over time, make this the year you go back to why you opened your business, what you saw, and grow those goals again.

don’t let fear hold you back. 

and if you feel like you are drowning in your business,

make this year the one to face your business head on and make it work for you,

through facing up to numbers…

Let’s start small, just the basics-

things you can change or gain more control over, because some costs are fixed. 

So many owners know how much colour in a bowl costs?

or bleach?

or toners?

how do you break it down? 

to quote something accurately, you need to know your material costs.

your initial colour costs are broken down to the price of your materials divided by the gram, and then multiplied by the amount most frequently used.

for example

artego colour is 150gm

salon price is $16.22

So 16.22 divided  by 150 = .1081 cents per gram

Peroxide 1000ml at $13.65 = .013 cents per ml

a 50gm mix of colour in bowl with a 1:1 colour like artego is 

25gm of colour 25 x -1081= 2.70

25gm of peroxide 25 x .013=.32 cents,

Total cost of 50 gm is 3.02 per application.

the next step is to break down all the other costs involved in a colour process if you want to be accurate in your total cost.

Start small, work out your colour costs, and then work on the challenge of breaking down your running costs to an hourly figure…

The more you understand your costings, the more efficiently you can run your business and see what changes can be made to increase your profit!

More to come!