Working out costing

[beckylashes]

I think it's really important in beauty to work out your cost per treatment and your hourly charging rate to reflect on your treatments as I know a lot of therapists don't

Does anyone have any tips for doing this and working out a salons running costs daily

I struggle to work this out because we are all doing different things at once all day every day I know roughly but would like a better idea

Help & details appreciated xx

 

[PamieD]

It seems like it should be straightforward but can be tricky. The one I use for quick assessment is all outgoings excluding treatment products (not things like couchroll which nearly all treatments use, but rather wax, creams etc) over a period, then divide this by the number of working hours in that period, and the number of therapists working at any one time. Then the cost of the treatment products + (hourly rate x time taken) = the cost of treatment.

It's very clunky though, and can be misleading as some treatments are high profit but have a low take up. Better to do profit per treatment in total imo.

Daily rate is easier, just the total cost of outgoings divided by number of working days. So long as the sales are above the outgoings over each year (excluding one-off costs to improve the business) then you've got a healthy business.