Think I have been doing this completely wrong!

[TPB]

I'm puzzled, I've had around 30 clients maybe more and earned around £673. Since June on clients, that's a rough guide, when working out my products and stuff I don't think I have made much more etc, can anyone point me to the right direction or recommend something that might help me! Maybe a business course I do need to attend?

 

[HairbyCass]

You can expect your first year in business to be a bit rough.

Are you looking at tracking your takings versus your overheads to work out your profit?

I have a money column book that I list me services and money taken for them, and then have columns for my expenses like insurance, and products etc. I then total the columns and minus my outgoings from my in comings and then have my profit.

 

[virtues2011]

I'm puzzled, I've had around 30 clients maybe more and earned around £673. Since June on clients, that's a rough guide, when working out my products and stuff I don't think I have made much more etc, can anyone point me to the right direction or recommend something that might help me! Maybe a business course I do need to attend?

If you divide 673/30 you get 22.43 which is just a very rough guide of what each of your customers pay per visit. As you know some will pay more some will pay less depending on what service you administer.

As a rule of thumb in business you should take your hourly rate, product usage, travel expenses if you are mobile, overheads, etc. so as an example say for a mobile therapist pedicure which takes an hour:

£10.00 hourly wage rate
£4.00 product use
£3.50 overheads/towels etc
£3.00 travel if mobile
Total before you start the service £20.50

You should aim for at least 50% profit if you can so 20.50 x 50% = 10.25
add both the 20.50 + 10.25 together and this is what you should be charging for your service = £30.75 (generally rounded up) Obviously these are purely fictitious figures for the example but should give you an idea where you need to be. Hope that helps.

 

[TPB]

Thank you both I just had ago at working it out. Think I better look into it more and separate money and work out costs per service and think again x

 

[hazeleyes]

If you divide 673/30 you get 22.43 which is just a very rough guide of what each of your customers pay per visit. As you know some will pay more some will pay less depending on what service you administer.

As a rule of thumb in business you should take your hourly rate, product usage, travel expenses if you are mobile, overheads, etc. so as an example say for a mobile therapist pedicure which takes an hour:

£10.00 hourly wage rate
£4.00 product use
£3.50 overheads/towels etc
£3.00 travel if mobile
Total before you start the service £20.50

You should aim for at least 50% profit if you can so 20.50 x 50% = 10.25
add both the 20.50 + 10.25 together and this is what you should be charging for your service = £30.75 (generally rounded up) Obviously these are purely fictitious figures for the example but should give you an idea where you need to be. Hope that helps.

Oops I'm defo significantly under charging then!

 

[Balance Andover]

Hello

In the first 6 months of being self employed (especially in the beauty industry) you will break even with the initial outlay of products and equipment, some people it will be longer than that depending on what has been purchased. Ensure that you are registered for self-assessment (if you haven't done this already as you must do it within three months of starting) for tax and keep your receipts and records in good order.

Firstly look at every treatment on your menu, work out what it costs you to carry it out, include products, consumables, electric, also don't forget to cost in things like your insurance, and any costs if you work mobile (fuel, car tax etc) put this information in a spreadsheet with the time it takes you to carry the treatment out. This will give you a good insight into how much things cost and what you should be charging.

Do some analysis on every single person who has come through your door, look at your appointment and client records and look at your treatments through from the most popular to the least popular, put them in a spreadsheet with a number of visits beside it. Look at what has worked and why, and what hasn't worked. Never do offers on what has worked and try to boost interest on what hasn't worked. This could be some free nail art or glitter on a certain gel polish colour (if it hasn't been that popular) or a free cleanse, tone and moisturise (this will introduce a person who doesn't usually have facials to your skincare brand, you can also do a quick skin analysis at the same time) do a proper consultation and give recommendations.

Take email addresses and Birthdays from everyone who walks in your door, email them with some well thought out marketing emails, e marketing is free and very effective. Send them a 10% voucher (or something similar) a week before their birthday.

There is also a thread on here http://www.salongeek.com/biz-geek/83160-more-ways-promote-your-business.html that will be useful to you.

Michelle x

 

[virtues2011]

Hello

In the first 6 months of being self employed (especially in the beauty industry) you will break even with the initial outlay of products and equipment, some people it will be longer than that depending on what has been purchased. Ensure that you are registered for self-assessment (if you haven't done this already as you must do it within three months of starting) for tax and keep your receipts and records in good order.

Firstly look at every treatment on your menu, work out what it costs you to carry it out, include products, consumables, electric, also don't forget to cost in things like your insurance, and any costs if you work mobile (fuel, car tax etc) put this information in a spreadsheet with the time it takes you to carry the treatment out. This will give you a good insight into how much things cost and what you should be charging.

Do some analysis on every single person who has come through your door, look at your appointment and client records and look at your treatments through from the most popular to the least popular, put them in a spreadsheet with a number of visits beside it. Look at what has worked and why, and what hasn't worked. Never do offers on what has worked and try to boost interest on what hasn't worked. This could be some free nail art or glitter on a certain gel polish colour (if it hasn't been that popular) or a free cleanse, tone and moisturise (this will introduce a person who doesn't usually have facials to your skincare brand, you can also do a quick skin analysis at the same time) do a proper consultation and give recommendations.

Take email addresses and Birthdays from everyone who walks in your door, email them with some well thought out marketing emails, e marketing is free and very effective. Send them a 10% voucher (or something similar) a week before their birthday.

There is also a thread on here http://www.salongeek.com/biz-geek/83160-more-ways-promote-your-business.html that will be useful to you.

Michelle x

Some good points here - not one of them is any help if you don't understand the fundamentals of business practices and procedures ...It generally takes longer than six months to break even although you have stated this, to make a profit can take anywhere up to three years. I personally can't stress enough the importance of management accounts even for a one man band, you can see what part of the business requires work, what overheads require reduction and how much spend on products you have made and what turnover you have received. You do not need an accountant for this. Without sales you have no business, if you are charging the wrong amounts you are just a busy fool waiting to fail...This industry is made far harder due to all the opportunists thinking they can provide a service so must start a business based on that, every other thread says the same...This industry should be regulated.

 

[virtues2011]

Oops I'm defo significantly under charging then!

Come on now Hazeleyes...don't let me down! What with your new found emotionless attitude, you should be making waves! ha ha ...

 

[hazeleyes]

Come on now Hazeleyes...don't let me down! What with your new found emotionless attitude, you should be making waves! ha ha ...

Loooool round here is hard to charge much higher- done my maths and I'm due to do a price overhaul and relaunch after Xmas cos I'm looking to leave my "other" job by April- so far it hasn't mattered so much as it has supplemented my income but 2014 is time for a change!

No more mrs nice girl!!!!

 

[virtues2011]

Loooool round here is hard to charge much higher- done my maths and I'm due to do a price overhaul and relaunch after Xmas cos I'm looking to leave my "other" job by April- so far it hasn't mattered so much as it has supplemented my income but 2014 is time for a change!

No more mrs nice girl!!!!

Yes I understand, this is my whole moan about opportunists. The daily threads are all the same..."How do I start a business, I'm 16 and I've been qualified a day" ..."Why don't I have any customers...I'm charging £2.00 for a set of acrylics with shellac and 19 FREE infills"..."I have no money saved but have just rented a 15 story building in the heart of London for £10k a week" ........IT'S A JOKE I'M TELLING YOU...A JOKE! ha ha moan over......! I suppose for each six + that fail daily another 6 just take their place! oh well......Keep going old bean! x

 

[Balance Andover]

Yes I understand, this is my whole moan about opportunists. The daily threads are all the same..."How do I start a business, I'm 16 and I've been qualified a day" ..."Why don't I have any customers...I'm charging £2.00 for a set of acrylics with shellac and 19 FREE infills"..."I have no money saved but have just rented a 15 story building in the heart of London for £10k a week" ........IT'S A JOKE I'M TELLING YOU...A JOKE! ha ha moan over......! I suppose for each six + that fail daily another 6 just take their place! oh well......Keep going old bean! x

Or everyone else I see is charging a fiver, so I will too!

 

[virtues2011]

Or everyone else I see is charging a fiver, so I will too!

Yes exactly......but what makes it harder is some of these therapists that charge silly amounts are actually very good, and qualified, and insured.... and they will fail and quickly! You always read the comments about "Well what sort of customers do you get for that price etc"....I'm convinced that many people these days look for a bargain due to the climate and the loss of jobs on a daily basis, they are not loyal like they used to be, the younger ones are generally worse for moving around. I don't compete with most salons as I specialise in CACI treatments and Environ skin care but the costs are high for customers. You can be talking £700+ for a treatment plan which is only for a select market, however the thought of competing with nails, lashes, waxing is too much hard work for me personally. My saving grace is that I do not have to make a living from my services I am purely passionate about them, this clearly makes a massive difference. This post does sound a little contradictory to my above post...but I hope you understand what I mean.

 

[hazeleyes]

Yes I understand, this is my whole moan about opportunists. The daily threads are all the same..."How do I start a business, I'm 16 and I've been qualified a day" ..."Why don't I have any customers...I'm charging £2.00 for a set of acrylics with shellac and 19 FREE infills"..."I have no money saved but have just rented a 15 story building in the heart of London for £10k a week" ........IT'S A JOKE I'M TELLING YOU...A JOKE! ha ha moan over......! I suppose for each six + that fail daily another 6 just take their place! oh well......Keep going old bean! x

Sigh! So irritating as clients can be very fickle and move on so quickly in favour of cheaper prices! For those of us trying to make a proper living using proper costly products, its so frustrating!! I hope these type of ppl do fail to be honest!!!!!

 

[virtues2011]

Sigh! So irritating as clients can be very fickle and move on so quickly in favour of cheaper prices! For those of us trying to make a proper living using proper costly products, its so frustrating!! I hope these type of ppl do fail to be honest!!!!!

They do ....daily....and then the cycle starts again with the next lot coming through! I'm not sure how this will ever change unless the Government make a change to the qualifications and standards- years ago (when I was younger...lol) you couldn't have two of the same business next to each other, a street where near to where I live has at least 9 hair salons in one block ...it's criminal and three of them are joined together but separate owners! Work that out.

 

[TPB]

I charge £25 acrylics £15 shellac plus I'm mobile, my friend said...Honestly, ur not cheaper than all 4 salons i use or the 1 in cwmbran,!! I jus like to use some1 i kno! No I kno thas wha I'm sayin u cud try & re-schedule ur bookings!

 

[TPB]

I charge £25 acrylics £15 shellac plus I'm mobile, my friend said...Honestly, ur not cheaper than all 4 salons i use or the 1 in cwmbran,!! I jus like to use some1 i kno! No I kno thas wha I'm sayin u cud try & re-schedule ur bookings!

A bit mortified that she said that!! I am cheap for being mobile and I'm obviously not charging right if I'm not making profit!!

 

[TPB]

A bit mortified that she said that!! I am cheap for being mobile and I'm obviously not charging right if I'm not making profit!!

She pays me £15 for acrylics anyways

 

[virtues2011]

I charge £25 acrylics £15 shellac plus I'm mobile, my friend said...Honestly, ur not cheaper than all 4 salons i use or the 1 in cwmbran,!! I jus like to use some1 i kno! No I kno thas wha I'm sayin u cud try & re-schedule ur bookings!

Jeeezzzzz is that an actual paragraph!! if so what language is it in?

 

[TPB]

Jeeezzzzz is that an actual paragraph!! if so what language is it in?

I'm more offended that I'm charging her. £15 and yet I'm too expensive already -_-

 

[hazeleyes]

They do ....daily....and then the cycle starts again with the next lot coming through! I'm not sure how this will ever change unless the Government make a change to the qualifications and standards- years ago (when I was younger...lol) you couldn't have two of the same business next to each other, a street where near to where I live has at least 9 hair salons in one block ...it's criminal and three of them are joined together but separate owners! Work that out.

Monopolising the market! Where I live there are thousands! The government has made some positive changes in relation to needing an NVQ or VRQ to get into a salon but it needs further monitoring and enforcements. Salons should be reprimanded for not adhering to said rules and regs!