Running at a loss?

[jodipodi]

Thanks redadmiral, its very hard trying to work out what treatments to put down-would you suggest just doing say a varied timetable? If I ran at what I have estimated which isnt a lot of treatments in a week - 20 hrs worth? - or is it???!!
Have spoken to 2 friends-one owns a sunbed shop/hairdressers and the other works in one, they both say an average number of clients per day for them can range from 10 to 50+ so people are definitely still using them so I have based my workings on 10 a day 7 days a week @ £4 per person.
Maybe Im totally over estimating numbers..going to try and juggle it a little and see if that hlps. I f anyones interested this is what I have down to break even each week, bearing in mind I intend to eventually have hairdressing incorporated so havnt costed this in yet.
70 x sunbed......£280
3 sets nails.......£75
4 x rebalance.....£68
3 x spraytans.....£60
3 x EBW............£12
2 x LIP WAX......£6
3x LEGWAX.......£30
2 x underarm.....£14
2 x bikini...........£20
2 x eyebrow tint.£14
2 x eyelash tint..£14
1 x false lashes..£15
2 x manicure......£16
2 x pedicure.......£16
retail-2 btls sunbed cream...£24
retail-3 x solaroil..£12
retail 10 x sachets cream..£15
4 x body piercing(hubbys side) ...£100
TOTAL INCOME £791 which would cover outgoings...just. PHEW!!!!

Can everyone please be brutally honest and tell me straight if I live on planet Koo-koo LOL!!
Kimberly Ive just read your post and am now freaking out-someone said it would be about £1000. I need to go and get some concrete info now xxxx Thanks everyone xx

 

[Blue Rose]

Blimey Jodi, Your prices seem so cheap compared to round here - hope you're not pricing yourself too cheap.

Don't forget if your prices are on the higher side it makes it easier to do promos & special offers without it impacting on your profit too much.

 

[jodipodi]

Cogsi do you know what it is I would have never ever thought of it like that!!! Thats so true and thank you for giving me a little nudge up as I sometimes think to myself ' do I deserve to charge higher than that' if you know what I mean?? Even better lol my intake will be higher ha! What do you think of the amount of treatments I have in a week-is it realistic?? Thanks for advising me it really helps xx

 

[bombini]

OK being brutally honest I think you should halve the figures you've got, sorry ! If thats what you need just to cover overheads then I think you are going to really struggle.

Am I correct in thinking that there are other successful sunbed salons in your area ? If so does your area really need another sunbed salon ?

When we had sunbeds at our salon they were hardly ever used apart from the summer, in the end it was costing more to lease them than it was making, some weeks there would literally be a couple of people using it !

I think the retail is a bit optomistic to, when the salon im in got rid of the sunbeds we gave all the tanning products away for free as no-one ever bought them !

If you add up all the treatments you have listed, one treatment per client that works out at 101 clients per week that you need, I would be amazed if you even get half of that for a new business.

Have you got a business advisor ? I really think you should get one, try the chamber of commerce I think you can get some free sessions to start with.

Im sorry if its sounds like im pooring cold water on your ideas but it so hard to get new clients in any business and I think that the amount you need just to break even is very, very high:hug:

 

[jodipodi]

Bombini thanks and no I want and need to hear all opinions as this is a massive step to take. I would be a fool to think of things as a bed of roses and every bit of input from those of you that have been there is essential to me. I need this to stay grounded.
Yes I already have a business advisor who Ive been working with for the past 6 months or so to try and get a good base and do it slowly. She helps iron out anything Im unsure of and guide me on how to work things out, also great as they help fund new businesses and source grants! What she cant do is tell me the average clients I would get so all the advice from yourself and others is great and much needed.
There is a large sunbed shop in the next shopping centre down from this one Im looking at but nowhere near the college which Im thinking is my niche market for sunbeds and body piercing. There isnt another sunbed/ beauty place within walking distance from where Im wanting to be.
I get that 101 clients for waxing/nails etc is in no way realistic but Im not expecting that just for treatments. What do you think about just the 30/40 treatments on their own without sunbed clients? Would this be realistic to achieve?
Thanks hun. xxx

 

[bombini]

Bombini thanks and no I want and need to hear all opinions as this is a massive step to take. I would be a fool to think of things as a bed of roses and every bit of input from those of you that have been there is essential to me. I need this to stay grounded.
Yes I already have a business advisor who Ive been working with for the past 6 months or so to try and get a good base and do it slowly. She helps iron out anything Im unsure of and guide me on how to work things out, also great as they help fund new businesses and source grants! What she cant do is tell me the average clients I would get so all the advice from yourself and others is great and much needed.
There is a large sunbed shop in the next shopping centre down from this one Im looking at but nowhere near the college which Im thinking is my niche market for sunbeds and body piercing. There isnt another sunbed/ beauty place within walking distance from where Im wanting to be.
I get that 101 clients for waxing/nails etc is in no way realistic but Im not expecting that just for treatments. What do you think about just the 30/40 treatments on their own without sunbed clients? Would this be realistic to achieve?
Thanks hun. xxx

I did include the tanning clients in the 101

I would still say that even 30 new clients per week is very high, I think 30 new clients a month is high in the current financial situation.

Maybe if you do a thread asking how geeks how many new clients they get a week that will give you an idea, I would truly be amazed if anyone gets that many new clients.

The same clients won't be coming back every week for beauty, more like every month so if you need a minimum of 30 clients per wk for beauty thats 120 new clients for your first month just to cover overheads !

I get a few new clients per month through word of mouth and my website. I haven't done any major advertising for 6 months as I will be going on maternity soon so not much point in me looking for new clients but when I did it was really hit and miss, I have placed regular £100 adverts before and had no clients at all from it !

Im sure there are some salons out there that attract loads of clients when they launch but all the really successful salons I know either have a HUGE marketing budget or have been established 10+ years.

 

[jodipodi]

Ok I need to start again with my facts and figures as I obviously havnt done this the right way
With rent/lease electric gas stock etc I dont get how people even cover their basics with so little clients a month! That means even if I only had rent to cover I wouldnt cover a weeks worth forget my months with 30 clients
Thanks bombini xx

Dont know if maybe over estimating my costs somewhere?

 

[bombini]

How much is your rent ? Mine is quite low (£90pw) as I rent a room not a salon, I know the rent on the hair salon is about 13,000pa but they have about 10 members of staff and its quite a big salon.

 

[Blue Rose]

Why not back track a few steps & recalculate your outgoings.

Have you made sure you're not adding monthly figures of some things & then weekly for others?

£1000 seems a hell of a lot to pay out, especially if there's no wages to pay, although this does come down with fewer sunbeds.

 

[jodipodi]

Got a feeling this is where Im gonna stumble. The unit is massive so is leased at 11000pa Hopefully with the recession Im going to push to be reduced by at least 1000+ and a possible rent free period but still it wont make alot of difference to the weekly cost. The location is paramount with this property its ideal and if I was to do things with it they would have to be big to warrant the rent thats why I was considering a few sunbeds with eventually hairdressing. If it wasnt where it was I woulnt even consider paying this much rent or even the sunbeds. Maybe I should be backing away from such a highly priced lease.
Cogsi I have went through everything and its not how ive worked out but maybe just expensive property and a little over estimating my outgoings. Wish someone would take a look lol, I will say though that this is to cover ALL expenditure including feeding us 4.
If you are running a salon but not taking a wage do you have to pay full rent and counciltax on tax credits alone? Maybe this is wrong also?? xx

 

[Blue Rose]

Your tax credits will be assessed on your net profit (if you have any) and not on your actual earnings.

It could be that your takings are enough for you to take earnings of for eg £150 pw BUT at the end of the trading year your profit shows very little, if any. This is the figure they will be looking at.

Also, if you work more than 30 hours pw you may get working tax credit too. You may not think you're going to work that many hours but it's surprising how they all stack up:
banking
paperwork
laundry
market research
leaflet designing
leaflet delivering
email clients
etc, etc, etc

 

[jodipodi]

We will definitely get tax credits and I have worked that into my income but just not sure if we are xpected to live on that alone? We wont be taking a wage and doubt will make a profit until a good year or two in but not sure if we would get anything more than the measely £130 to live on, itll be ok if we dont have to pay rent and counciltax though and this will reduce our weekly outgoings by £100 if this is the case. Hmm got a feeling this might be where Im going wrong...we might get some sort of housing/counciltax benefit if our income is below a certain amount? xx

 

[jodipodi]

Think Ive had a breakthrough!!!! Just worked out that on benefits we'd have a weekly income of about £170 and would recieve full housing/counciltax benefit but if we had a salon we'd literally be living on tax credits alone of £130 so if Im working it out right that means we should be entitled to the same benefit as we'd be living on even less money until we made a profit!! Back to the drawing board ha ha.
Flippin eck no wonder my sums are wrong....thank you all for your help you's are little stars.
xxxx

 

[Blue Rose]

Try here Start Calculation. You'd be surprised how much you can be entitled to.

If your hubby doesn't work & you have children this makes a difference. Don't forget your child benefit if you have children.

 

[jodipodi]

Just done a calculation and yep we should be better off than what Id expected! That site is fab-never heard of it before, have also downloaded that book you advised on your signature for the future. Happy happy LOL XX

 

[carlydee@hotmai]

Hi

I have a tanning and beauty shop have been running for about 6 months now. I would only get 2 beds to start with and see how things go. Taking on 4 beds is too much as you may go days without anyone using the beds and you still need to pay out. I only have 2 beds some days i dont have anyone of the beds and then another day a lot. 60 users a week is a lot, I would say at the moment i am only on 30 customers a week. You should do well on the upsell of the creams etc. I am open until 8pm most nights and closed on a Monday now as not worth opening up.

HTH Good luck will be great fun

 

[jodipodi]

Thanks Carlydee, its a nightmare trying to work this stuff out lol,do you lease or bought outright?