how do you work out proffit and costings

[jenny2]

ok if i do say for example half a leg wax how much roughly would that cost me in product, the same with eye brow shapin, also what system is the best to use, i am old fashoned in the sence i still like using the honey bee pot lol
also massages how do you work costing along with ped and man, sorry guys need to work this out but have no idea how
love jenny

 

[beautynails]

Most companies can provide you with the product cost for services, but you need to take your other overheads into account too.

 

[Bombalurina]

I would have thought the best way to work out how much waxing services cost you, would be to keep a record of how many treatments you can get out of a pot....eg, if you can get 10 full leg waxes out of a pot that cost you £4 (for example!!), then the wax for a full leg would be 40p...then see how many strips it took you to complete each leg wax...if a packet of strips cost you £2, and there are 100 in a pack, then each strip costs 2p...so a full leg wax might cost you 50p in wax and strips...

(I know those quantities and prices are unrealistic, but just wanted to make the maths easy for myself!!) You'd then have to work out how much each ml of pre/after wax lotion cost you, and how much you use per waxing session, to work out how much products cost you per treatment, and add that onto the cost of the wax and the strips.

I'm sure it's a long way around, but it's the only way I can think of with a headache!! There's probably an easier way...!!

 

[Mrs.Clooney]

I would have thought the best way to work out how much waxing services cost you, would be to keep a record of how many treatments you can get out of a pot....eg, if you can get 10 full leg waxes out of a pot that cost you £4 (for example!!), then the wax for a full leg would be 40p...then see how many strips it took you to complete each leg wax...if a packet of strips cost you £2, and there are 100 in a pack, then each strip costs 2p...so a full leg wax might cost you 50p in wax and strips...

(I know those quantities and prices are unrealistic, but just wanted to make the maths easy for myself!!) You'd then have to work out how much each ml of pre/after wax lotion cost you, and how much you use per waxing session, to work out how much products cost you per treatment, and add that onto the cost of the wax and the strips.

I'm sure it's a long way around, but it's the only way I can think of with a headache!! There's probably an easier way...!!

A good example above. I agree it does sound like a long way around, but this is the way it has to be done. There is no simpler way I don't think. It's not a simple case of sucking a figure out of the air and saying "that's the price I'll charge".

You also need to look at your local competition to see what they are charging plus take into account your overheads, insurance etc... and what you wish to earn as a salary.

I really advise creating a large spread sheet. It doesn't have to be computerized if you are a pc numpty like me lol:o. Just get some A4 paper and tape it together if needs be and create your spread sheet from there. The simpler the better for me lol!

How many treatments do you estimate per week. Remember that these treatments won't automatically start happening. You have to estimate. It takes time to build up a business along with advertizing and your reputation.

If a full leg wax is going to cost you eg. £1 in wax, strips, spatulas, gloves, prewax, afterwax and couch roll and you are charging £15 for full leg wax, then you are making £14 on the treatment. From this you need to account for cost of overheads for that one treatment eg. £3. This leaves you with £11. But then you need a daily cash flow to run your business eg. £3 which leaves you with £8 as your salary for that treatment. After this you need to condider VAT if you are VAT registered, annual taxes and National Insurance.

Hope this doesn't scare you but hope it helps.

 

[Mrs.Clooney]

http://www.salongeek.com/biz-geek/6...ment-prices.html?highlight=Costing+a+Business

Try this link for some excellent advice from Sassy Hassy. Best wishes x

 

[nailzoo]

If you want to get technical, weigh the wax pot before the service, then weigh it afterwards (then you know how much wax you have used).

Yep sounds ridiculous, but thats how it is worked out (even though your suppliers will have an idea of how much you use).
Then add the cost of anything else you use,strips/afterwax/talc etc, then add in labour.
You can even work out electricity down to the minutes of service (including wax warm up time), rent per service etc

When I was a chef, we had to weigh things like carrots/onions before peeling, then afterwards (not everytime of course) to work out wastage.
Costing was a pain in the "A", but it did teach me how it was done.

Then you could work out percentages of use (compared to waste), it depends how anal you are or how much you want to split hairs.

Often a "guestimate is good enough", costing is a very interesting lesson and it will more than likely do you head in.

Moblie techs have to cost in fuel costs, travelling time, treatment time, pack up time blah blah blah.