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HairdressingWorld Forums • What's the average monthly quantity of 'heads' ? : Salon Business Articles
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What's the average monthly quantity of 'heads' ?

PostPosted: 27 Sep 2011 10:53 am
by Dave
Hi Everyone :)

The following answers will mean the world to me right now and I would really appreciate different opinions and anyone who takes the time and effort to help me with these, I tried working things out but my brain's starting to hurt! :)

Please could you help me with these;

Scenario: A small central(ish) London based salon, individually owned, has good marketing to attract clients, with x3 qualified staff, either doing colour & cuts each, or x1 stylist and x2 colourists, one of them works as salon senior / manager (opens & closes etc) and one assistant - the salon is ultimately managed by the owner who doesn't actively hairdress due to other business interests as well, but pops in part-time and manages high level business matters; ie marketing, accounts, training etc. All staff are employed full time on a basic salary.

The questions I have are:

1. There are busy days and quiet days, but averaged out over a week or month, how many heads should each hairdresser do per day (average, what's the norm in the industry)?

1b/ How many of these heads per day should be done for the basic salary to be justified (basic targets) and at what point should commission per head be paid (target bonus reached)or should a commission cut be given from head #1?

2. What is the minimum as well as the general average monthly basic salary that should be paid to each stylist (+- 2-5yrs experience) and how much should a full time adult aged assistant earn a month (not an apprentice)?

3. How much should the managing stylist in a small shop like this earn? (more than the other stylists)?

4. If you owned the above small-ish shop with the said staff, what is the minimum annual profit that you would be happy with / would make it worth the owner's while?

I am so excited to hear from anyone with experience owning a salon!
Thanks!!!!!!
xD

Re: What's the average monthly quantity of 'heads' ?

PostPosted: 15 Dec 2011 12:59 am
by globaljet
Hi Dave, I thought I was going to be clever and just cut and paste from my notes but I´ve transfered them all to PDF and I just get lines now__________ so I will do this quick because dinner is cooking furiously.
1.The way most salons operate is that they market the salon and pay a % to the staff to service the clients
The reason clients follow stylists is because the salon hasn´t made it obvious why clients came to them (the salon) in the first place.
2. there is a formula you can run that will show when stylists are earning more than you are paying, once reasched it is good business to pay a portion of those profits back to stylists in recognition for maintaining the salon clientele. (I´m not going into that, dinner is almost ready..
3. Work out a retainer for the management position separate to stylist Av. wage
4. As a salon owner I set a target for growth desired and work the formula below

You need to know what your max capacity is and work backwards. There´s no point getting 500 clients in one if you cannot fulfill the order. So it really is like mixing a colour, what do I have, what do I want to achieve. Take your time the numbers are quite easy once you adjust to what you´re looking at.

Step #1 (I´m all about the steps, I´m a systems & service junkie.)
Define Your Present Situation
Present Gross $ Sales
Market Potential $ (if you can find out)
Present Market Share % (if you can find out)
Desired Growth $
Market Penetration % (if you can find out) Don´t worry if you don´t have all 5 you can work it out with just the those two.

Step #2
Know Your Key Ratios %
These ratios and averages will help you work out where you are and your growth potential

1. Average Client Worth $
2. Closing Ratio % (consider this re-booking,new clients &/or retail customers that you turned into clients as a percentage)
3. Number of Clients las 12 months
(Gross Sales / Average Client Worth) =
4. Number of Customers last 12 months
(Number of customers / Closing Ratio) =

Step #3 Complete the growth matrix

#No. of Customers Closed

#No. of Avg. Clients

Gross Anually X Ratio = Buyers X Worth = Sales

Total Net Growth You Will Release $_______________

Net Growth $_________/ Present Gross Sales

$____________X100= Actual Exponential Growth Achieved___________%

Improve just a little in each of these three areas and you will see dramatic overall growth
1. Increase Profits
2. Increase Closing Ratio
3. Increase Client Worth
I would suggest working on all three.

Sorry I didn´t really answer your questions well but I hope you find this helpful. If you would like a more in depth analysis of the business I am committed to helping SME´s develop their own mini economies, and this analysis will give you the insight you need to grow even if you do it yourself.
DINNER¨S READY!!
good waves and hair days,
Raymond E Lee