Business Management

Do You Know Your Stats?

When was the last time you took a good look at your numbers? Take this quiz designed to shed some light on the numbers that underlie your bottom line and why you should care about them.

When was the last time you took a good look at your numbers? Take this quiz designed to shed some light on the numbers that underlie your bottom line and why you should care about them.

1. What’s the cost-per-service for products used in you enhancement services?

a. What does cost-per-service mean?

b. I’m sure it’s low.

c. I’m on top of the cost-per-use for each product we use.

2. What’s your staff retention rate?

a. We have a turnstile at the front door. Are you looking for a job?

b. People rarely leave — maybe a couple a year?

c. Our staff turnover is about 10% per year (1 out of 10 techs).

3. What’s the average service ticket amount excluding retail and tips?

a. I don’t track the numbers that closely.

b. Ask my accountant.

c. [insert specific amount] average per client visit.

4. What’s the percentage of clients who prebook appointments before they leave the salon?

a. They’ll call me later.

b. I’ll prebook them if they ask, sure.

c. I remind each client to prebook before leaving — if they’re not one of the 50% that have standing appointments.

5. What’s the gross income-per-square-foot of the salon?

a. Hey, how big would you guess this salon is?

b. You’re joking right; people really know that stuff?

c. We have 1,000 square feet and took in $200,000 last year. That’s $200 per-square-foot per year or  $16.67 per month. [insert your own specifics]

6. What’s the average retail sales amount per ticket?

a. I sold a bottle of polish today.

b. Not enough, I have to dust the leftovers.

c. Our ratio is about 70/30 [insert your own numbers], services to retail sales.

7. What’s your client retention rate?

a. What if they leave and then come back, does that count?

b. Who needs them if they don’t see how great we are?

c. 95% come back to the salon; 85% stay with the same technician. [Your stats may vary, but hey, you know them!]

8. Can you rattle off your fixed and flexible expenses? And the total per month?

a. Anything I spend is an expense, right?

b. They change so much; I just add them up at the end of the year.

c. Yes, I track them closely so I can make sure I’m making a profit and adjust accordingly.

9. How much time do you spend recruiting throughout the year?

a. If I need someone, I put a sign in the window.

b. I don’t actively recruit, but collect applications if someone comes in to ask if we’re hiring.

c. I give a talk once a month at the local school and keep my eye on local talent before I need them. Staying in touch with local talent and constantly taking applications lets me always have a full salon.

10. How much time do you devote to training and staff development per year?

a. They should have paid attention in nail school.

b. I don’t track their training but the staff members usually go to a tradeshow every year.

c. We have some sort of hour-long training event every month during a staff meeting. We also attend tradeshows, read industry magazines, and host manufacturer trainings regularly.

I bet you were expecting a nifty answer key right about now. The truth is, your business is a little more personal — and complicated — than that. If you scored mostly Cs, then you are on your way. I’ll let you in on a little secret. The best salons are always adapting … and sweating the small stuff. This quiz is an exercise in self-discovery. The statistics that apply to your salon will be different from those for a salon down the street. The important thing is that you know what they are and can use them to drive your decisions in a healthy manner. A healthy business model is based on facts. Were there a few questions that left you stymied? It’s OK. Everyone has to start somewhere. You are here. Read on to learn how to use these metrics to improve your salon’s bottom line. 

Keywords:   building your clientele     finding/retaining staff     retailing     salon finances  

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