Business plan & goals, what are your service & retail targets?

HMC

Member
#1
What is the average in the industry? I am very new to this side of business and need a starting point. Can anyone confirm what I have heard here:
  • Therapists should be booked 80% of their schedule
  • Therapists should aim to bring in 3-4x their wages
  • Selling retail with __% of services ???
  • OR __% of my income should be retail/product vs treatment/service?
  • Any other advice? How do I know what I am calculating is realistic?
Thanks for any insight.
 

#2
We aim to have around a third of our turnover as retail and so far we're more than hitting that target.
Staff targets are hard. If they're doing £25 nails, to hit 3 times their salary can be hard. We have trained staff up so they are able to offer much more expensive treatments. Good for them and good for us.
We don't currently have targets for staff but they have incentives and rewards.
To be honest you can do what works for you, or you can hire a salon coach who will give you figures etc. based on industry norms. I've never gone down this road.

Vic x
 

salonfrog

Active Member
#3
I’ll PM you a guide we put together with some industry norms. As squidgernetball says, you can then adapt them to your business.
 

HMC

Member
#4
Really helpful replies, that gives me somewhere to start - thank you both.
 

TheDuchess

Well-Known Member
#5
30% retail is excellent - I'm not quite there yet as not all of our therapists can sell all of our products so they'll miss opportunities. We're about 26% of turnover and sell to 1:5 clients.

I gather beauty industry aims at 20% but the average actual is 10%. It does depend on your set up and the products you sell.

We sell Jane Iredale make-up. We're one of the newest accounts in the area (I think the most recent actually) and to our disgust we were one of 4 new accounts to go live in a radius of about 2 miles, all within 3 months.

We were also a new business which had just relocated so had a very small client base when we opened. Within a year we sold more JI than all the other accounts in the area put together, including the 2 established accounts that we had known about when we opened.

So retail is detail and it's all to do with training, good products and excellent service. I invested in training every one of my staff including part-time students covering reception. It absolutely killed at the time, but now I'm in profit on that investment. 4 of the other local accounts have now stopped selling JI so they caught a cold...
 

redlottie13

JUST BE NICE
#6
I’ll PM you a guide we put together with some industry norms. As squidgernetball says, you can then adapt them to your business.
Would you mind sending this to me also please?
 

JayM

Active Member
#7
I’ll PM you a guide we put together with some industry norms. As squidgernetball says, you can then adapt them to your business.
Please could you pm the guide? X
 

RD Beauty

Active Member
#8
Really need to up my retail game then
 

HMC

Member
#9
30% retail is excellent - I'm not quite there yet as not all of our therapists can sell all of our products so they'll miss opportunities. We're about 26% of turnover and sell to 1:5 clients.

I gather beauty industry aims at 20% but the average actual is 10%. It does depend on your set up and the products you sell.

We sell Jane Iredale make-up. We're one of the newest accounts in the area (I think the most recent actually) and to our disgust we were one of 4 new accounts to go live in a radius of about 2 miles, all within 3 months.

We were also a new business which had just relocated so had a very small client base when we opened. Within a year we sold more JI than all the other accounts in the area put together, including the 2 established accounts that we had known about when we opened.

So retail is detail and it's all to do with training, good products and excellent service. I invested in training every one of my staff including part-time students covering reception. It absolutely killed at the time, but now I'm in profit on that investment. 4 of the other local accounts have now stopped selling JI so they caught a cold...
Great response, thank you.
 

#10
I’ll PM you a guide we put together with some industry norms. As squidgernetball says, you can then adapt them to your business.
I’ll PM you a guide we put together with some industry norms. As squidgernetball says, you can then adapt them to your business.
Could you send this guide to me too please?
 

salonfrog

Active Member
#11
I think I’ve PM’d everyone the guide who asked. Let me know if not though!
 
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