How much of your treatment price do you take as profit

[sarasparkles201]

Hi all a question for you, now this may sound totally stupid but will try and explain what i mean.

I keep playing with my figures for treatments, now as i am new to all this and this business is only 5 months old i am a bit confused about profit.

Yes i did a business plan,but have since looked at it and thought that if i pay myself per hour for the treatment time, i am making little profit.

So from any treatment you do, how much of the customer price do you take for profit?

I started off by saying i was going to pay myself xx£ an hour, then i realised if i did that, i would only make a few ££'s in profit.

So i think i need to find out what % should i be taking from the treatment price as profit?

 

[Tomme]

I'm a little confused at how you are Woking this out. The easiest way to work out treatment costs is to have the price of the product, so lets say you have a 100ml shampoo, and it cost £100. You use 1 ml per shampoo. So per client it would cost £1. The conditioner is the same. So its now £2 per customer. You then use blowdry products. So its now £3. You then minus that from te cost of the service. Each week you take a set amount. What's left over after wage as re stock is profit. You don't take a cut per treatment as it a gets too confusing xoxo

 

[Zooks]

I think Tomme has explained it pretty well.

Anything you make minus the cost of the treatment(s) is your profit.

For Example if you charge £50 for a mani and it cost you £5 worth of product then £45 is the profit you make.

I pay myself a salary. Paying myself hourly gets too confusing as it would be different allll the time, do you count the time youre sat with no clients as working etc?

So I pay myself £x per month and if I start to boost sales, increase business and can justify paying myself more I will, heaven forbid it should go the other way then I would have to reduce what I am paying myself

Does this help you atall?