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

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HMC

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Mar 12, 2014
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Location
Auckland, New Zealand
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.
 
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
 
I’ll PM you a guide we put together with some industry norms. As squidgernetball says, you can then adapt them to your business.
 
Really helpful replies, that gives me somewhere to start - thank you both.
 
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...
 
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?
 
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
 
Really need to up my retail game then [emoji85]
 
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.
 
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?
 
I think I’ve PM’d everyone the guide who asked. Let me know if not though!
 
I’ll PM you a guide we put together with some industry norms. As squidgernetball says, you can then adapt them to your business.

Only just read this thread would you mind sending to me please, Thank you
 
Really helpful replies, that gives me somewhere to start - thank you both.

I retail about 3-5% a year, which sounds low but I work mostly on regulars so they come in, buy all the aftercare for every treatment they have done and then they rebuy approx 6-9 months later. Then they will buy the aftercare after I upsell to other treatments. I work from home and I used to think it was so hard but once you know what to say and can respond to buyer cues it just becomes part of the service. My goal is to sell aftercare to every new client. It is very rarely that I don’t as they need it. Then after 6 months I check at their visit how they are getting on with it and if they need more, and usually leads to like one or two supersize facial products or a kit.
 
Would you mind sending me a copy please Salonfrog. Thanks
 
I would also love a copy if possible. Many thanks.
 
Anyone interested in obtaining a copy of the guide, should please contact @salonfrog directly by way of PM.

Thank you.
 

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