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Salon pomme

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JOHN and MARY two new salon owners story.....

John left his employment, found an empty shop and opened his own salon. He knew the prices that his old clients paid and called a few salons to find out what the salons in the are were charging. So he came up with the average price of a c/bd would be $20 and colour would be $50 so if most clients had a cut and colour he would earn $70 per client. Not bad he thought and I'm good so i will be busy in no time at all.
John got busy and full as well, he was working very hard even managed to employ helpers.
But when he managed to take a breath and looked at his bank account he could not understand why he had no more left, actually his staff earned more than he did. Anyway he decided to carry on, because you are not meant to make much money in the first few years.
Mary's story.....
Mary left her employment, found an empty shop and opened her own salon.She knew the prices that her old clients paid and called a few salons to find out what the salons in the are were charging. She came up with $20 for a cut and blow-dry and $50 for a colour, $70 she thought that was good. But someone told her to work out the amount to charge backward? Backwards? She gave it a go.
She decided to work out how much money she needed to survive and how much she wanted to pay herself.
So she started with her old wage $40,000 and added to that her bills and a staff member and that came to $120,000 to cover all bills, wages and rent. She next worked out that she wanted to open 5 days a week so she divided $120,000 by 48 weeks (she wanted holidays as well, this is only a story). That meant she needed to make $2500 a week just so she can be no worse off than working off someone. She then divide the $2500 by 5 days a week and realised she need to make $500 a day, thats $250 for her and $250 for her staff member. She then worked out how many clients she cool do in a day. She came to 3 each, so that meant she needs to get $83 off every client and set her prices as cut and blow $20 and colour $63. That would be a great starting point she thought and set her prices accordingly.
NOW you would have noticed John was not to far away with his guestamate, But that would be enough to start the rot of working for nothing, the next step is giving up. Unless he works it out?
Mary's way is the best way to open up your salon and set your prices, if you have already opened your salon, do what Mary did and work out where you should be or want to be, then work out where you are now and figure a way to close the gap.
What are your thoughts?
 

izzidoll

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Great thread with excellent advice.

So many people go down the John route, myself included!
We all should be more business minded like Mary.
 

squidgernetball

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My thoughts are how did they find it that easy to get clients?
If you read the posts on here, all Marys clients will be going to John because he's cheaper!

It worries me when people say "I'm going to open a salon" with no client base at all. They then throw everything into it and post on here that there are no clients. The thought seems to be that clients are just sitting around waiting for a salon to open near them before they are inspired to go and have treatments. The reality is that they are going somewhere but we have to encourage them to come to us, then rebook with us.

I'd be amazed if either Mary or John made any kind of profit in the first year, let alone take a substantial salary!

Having said all that, you're completely right in that just looking at what others charge isn't enough. It's no good charging peanuts then complaining we have no money, in the same way that it's no good looking at the £10 shellac nails and trying to compete, or the £5 haircut in the walk in place. We have to know what our differences are from places like these to justify our difference in prices.

Vic x

Sent from my SM-N910F using SalonGeek mobile app
 

surf girl

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I don't get it? John charges £70 and Mary was going to aswell, is she doing better coz she's charging £80 ish?
 

Grace_Hair

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Well. Wish I'd read this before.

Will save this to remember for when I change prices! 😜
 

fluffy26

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......of course MARY is doing better than JOHN, she's s woman!! 😊👍 (& there goes the can of worms all over the floor?!👊😆)
 

Successful24

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Mary's Customer Service must have been Better. People will pay more if its worth it. customer service hospitality, manners and the occasional special Offers etc people will be attracted too
 

Manda Panda

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......of course MARY is doing better than JOHN, she's s woman!! 😊👍 (& there goes the can of worms all over the floor?!👊😆)

That made me chuckle 😜
 

Manda Panda

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Great advice at just the right time, I'm just about to re-structure our prices.
 

Manda Panda

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Salon pomme, where did the cost of products come in?
 

Cholo

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Mary's story-
3rd para down. Started with $40k and added on bills...

This includes all fixed and variable costs eg. Rent, insurance, products, training, wages, licences, cleaning, uniforms, refurb costs etc etc
 

Manda Panda

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Thanks you I though that was just referring to bills not products xx
 

Salon pomme

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It's just a way to work out your bills, most salons do it the wrong way. I'm posting the next story tomorrow.
 

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