Running in the red and can’t figure out why? Want to lower expenses but can’t figure out how? Maybe a look at typical salon industry figures can get you heading in the right direction. In the updated edition of Milady’s Successful Salon Management for Cosmetology Students, author Edward Tezak offers high and low targets for salon operating costs in various expense categories.

Typical profits run between 6% and 20% of your salon’s gross income, he says.

 

Area of expense

% of gross service income

Wages

45-55

Supplies

5-10

Rent

5-10

Maintenance

25-4

Linen/Towels

1

Advertising

5-10

Depreciation Cost.

4-6

Utilities

5

For more information, look for Successful Salon Management for Cosmetology Students and other books from Milady or visit www.Milady.com.

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