The Key Financial Performance Indicators
The organisation and management of a salon is dependent on the role of the salon owner, which is multifaceted.
In most salons, the owner spends a lot of time on the production process of the business.
It therefore takes on multiple roles and cooperation with external partners is essential
for the proper functioning of the business.
The roles of the Owner-Dresser
- Artistic: To participate in the production process. Also to serve customers and train staff.
- Business: to know how to monitor economic and statistical indicators, always aiming at the profit of the company.
- Personnel Management: The organization and motivation of staff and the development of teamwork.
- Marketing: The promotion of the salon in various ways and public relations.
Specifically in this article we will talk about the Business role of the owner and specifically about the financial indicators,
he needs to monitor.
Statistical Analyses Hair Salon
For the proper organization and management of a salon, the key figures that an owner must monitor
to make the necessary statistical analyses are visits, clientele, services, turnover and also profitability.
– Visits are how many times a customer came in and performed a service or purchased a product.
– The Customer Register is the nominal list of customers.
– Turnover is the amount of money that went into the cash register, either in the form of cash or by card.
– The Services are the work provided by the shop.
– Finally, profit is the money left over after expenses have been deducted from income over a period of time.
Financial Indicators of a Hairdresser
The economic indicators are compared to corresponding periods.
For example, compare January 2022 with January 2021.
So we can therefore get the right picture of the development of our business.
The Most Important Financial Indicators of a Hairdresser
Turnover/Visit
For example :
January 2022 : 11.280 euro turnover / 210 visits = 53,73 euro Turnover per visit
January 2021: 9.400 euro turnover / 180 visits = 52,20 euro Turnover per visit
So we see an increase from 2021 to 2022 in turnover per visit.
Turnover/Employee
By knowing the turnover per employee, both in total and by service, we can draw some conclusions,
such as whether our staff is adequate or in which service they might need training.
By comparing with previous periods, we can therefore see the evolution of each.
What we should always keep in mind is that we can “read” the turnover of employees.
and in relation to the total turnover of the undertaking.
That is, if the company has a -5% return on turnover we should not be disappointed by a corresponding return on employees.
Percentage of Customer Account
By customer list, we mean the list of our customers.
That is, if a customer comes in a period of time more than once, we count him once.
With the customer list we see whether our customers are stable in general or by service.
Therefore, it is extremely important, as it shows us the progress of our business.
For example, our visits may have decreased due to covid, but our customer base is stable.
In conclusion, this means that we have not lost customers, and once this situation has passed,
will probably return our business to previous levels of visits.
Staff Productivity
The calculation is done as follows:
Employee’s turnover (excluding VAT) / Total salary cost
The productivity index is representative over a period longer than four months.
Profitability
The final profitability of the salon and the percentage of the breakdown of expenses in turnover offer a very good illustration
the health of the business.
If the group is productive and costs are regulated on a needs basis then the final profitability should be between 13-18%.
Attend the educational, prive seminar “Basic Financial Indicators for Hairdressing” and learn everything you need to
the correct organisation and management of your salon. For more information info@salonproactive.com.
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