Percentage of takings on staff costs
- Thread starter LondonRee
- Start date
Help Support SalonGeek:
squidgernetball
Ubergeek
That's hard to answer as my takings fluctuate hugely!
Vic x
Sent from my GT-I9505 using SalonGeek mobile app
Vic x
Sent from my GT-I9505 using SalonGeek mobile app
Have you read any of Simon Lotinga's books? If not you can get a free download here The Successful Salon Club - Blog
There is a great section about how to aim to split your % costs to ensure you make a profit.
profit 20%
Rent & rates 5%
wages 40%
vat 13%
stock 14%
sundries (this is all of your other overheads and spending) 8%
Businesses will vary eg my rent is higher but I save on wages and sundries by a few % and so still make 20% profit. It really makes you think!
There is a great section about how to aim to split your % costs to ensure you make a profit.
profit 20%
Rent & rates 5%
wages 40%
vat 13%
stock 14%
sundries (this is all of your other overheads and spending) 8%
Businesses will vary eg my rent is higher but I save on wages and sundries by a few % and so still make 20% profit. It really makes you think!
There are two ways to look at these. There is pricing for your services before you do a treatment and there is the end of the year "what return did I get for my investment of time and money"
If you keep your labour costs to between 33/30/25% of your turnover you're doing ok. That means that for every £1 you pay out in labour you need to make £3.
I work on £1 for labour, £1 for the salon, £1 for the client treatment as a rough rule of thumb. I then finesse my overheads to try and get the salon costs and client treatment costs down to 25% each (retailing products helps!) that gives me my profit !
If you keep your labour costs to between 33/30/25% of your turnover you're doing ok. That means that for every £1 you pay out in labour you need to make £3.
I work on £1 for labour, £1 for the salon, £1 for the client treatment as a rough rule of thumb. I then finesse my overheads to try and get the salon costs and client treatment costs down to 25% each (retailing products helps!) that gives me my profit !
