How to Calculate the Profitability of Beauty Salon Services
Posted: Tue Jan 21, 2025 10:52 am
This approach allows you to plan in advance not only your income, but also the necessary overhead costs. For example, you don’t want to go beyond 15% for monthly purchases of consumables. In this case, you should have a good understanding of the production process, know which materials need to be ordered from suppliers, and which can be replaced with those you have in stock. This will allow you to always stay within the allocated budget and not follow the wishes of your specialists. Of course, force majeure circumstances are not excluded, when it is impossible to avoid urgent purchases or unforeseen expenses, but such expenses should not exceed 5% of your planned budget.
If all necessary expense items are planned in advance, you can forecast your profit. How will you make a profit if you have no income items planned for the current month?
How to Calculate the Profitability of Beauty Salon Services
How to Calculate the Profitability of Beauty Salon Services
Source: shutterstock.com
Calculating the profitability of physician database a beauty salon and calculating the profitability of individual types of services are two interrelated processes. However, quite often studio managers do not pay due attention to analyzing the profitability of a particular service when they make a price list or launch promotions and special offers. It is difficult to count on profit if you do not have a clear idea of the profitability of each procedure, for example, in a cosmetology salon.
Often, when creating a price list for services, a studio owner simply multiplies the cost of consumables by 2 or 3, while it is the profitability indicator of a separate procedure that is the basis for predicting the profitability of the entire enterprise.
In calculating the cost price and profitability of services provided in the studio, one of the key indicators is the overall workload of the salon, which consists of the workload of individual work places (capacities).
Case: VT-metall
Find out how we reduced the cost of attracting an application by 13 times for a metalworking company in Moscow
Find out how
It is logical to assume that the cost of the service provided is directly dependent on the number of clients who have applied. 70% occupancy of work places gives more revenue than, for example, 30% occupancy. At the same time, the costs of rent, cleaning, utilities and salaries of technical personnel remain unchanged. Therefore, the higher the occupancy of the salon, the higher its profitability! Experienced managers in the beauty industry always monitor this most important indica
If all necessary expense items are planned in advance, you can forecast your profit. How will you make a profit if you have no income items planned for the current month?
How to Calculate the Profitability of Beauty Salon Services
How to Calculate the Profitability of Beauty Salon Services
Source: shutterstock.com
Calculating the profitability of physician database a beauty salon and calculating the profitability of individual types of services are two interrelated processes. However, quite often studio managers do not pay due attention to analyzing the profitability of a particular service when they make a price list or launch promotions and special offers. It is difficult to count on profit if you do not have a clear idea of the profitability of each procedure, for example, in a cosmetology salon.
Often, when creating a price list for services, a studio owner simply multiplies the cost of consumables by 2 or 3, while it is the profitability indicator of a separate procedure that is the basis for predicting the profitability of the entire enterprise.
In calculating the cost price and profitability of services provided in the studio, one of the key indicators is the overall workload of the salon, which consists of the workload of individual work places (capacities).
Case: VT-metall
Find out how we reduced the cost of attracting an application by 13 times for a metalworking company in Moscow
Find out how
It is logical to assume that the cost of the service provided is directly dependent on the number of clients who have applied. 70% occupancy of work places gives more revenue than, for example, 30% occupancy. At the same time, the costs of rent, cleaning, utilities and salaries of technical personnel remain unchanged. Therefore, the higher the occupancy of the salon, the higher its profitability! Experienced managers in the beauty industry always monitor this most important indica