salonfrog
Accountant for salon owners
Hi everyone,
there is a very well known performance indicator (KPI) in the industry such that your stylists should be generating income for the salon of at least 3 times their wages.
But does anyone know where this KPI came from? Why 1/3rd? I've always understood it to be that income is then used for 1/3rd wages, 1/3rd overheads, and then 1/3rd profit before tax. Is this still a relevant KPI number?
Google doesn't seem to know
I'm researching it for an article I've been asked to write and so any info would be much appreciated. Happy to share the finished article with you as well.
Many thanks
Andrew
there is a very well known performance indicator (KPI) in the industry such that your stylists should be generating income for the salon of at least 3 times their wages.
But does anyone know where this KPI came from? Why 1/3rd? I've always understood it to be that income is then used for 1/3rd wages, 1/3rd overheads, and then 1/3rd profit before tax. Is this still a relevant KPI number?
Google doesn't seem to know
I'm researching it for an article I've been asked to write and so any info would be much appreciated. Happy to share the finished article with you as well.
Many thanks
Andrew