#### Salon pomme

##### New Member

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?