Why The Little Numbers Matter
We all know this scenario. You’re on your way to the salon and you need your morning caffeine fix. A quick stop at the drive-thru and five dollars later, you’re ready to start the day; however, you think to yourself: “I wonder how much money I would save if I just made coffee at home.”
I’m sure we all experience this with any small, regular purchase. That scary thought of “how much money am I losing out on every year just because I need my Starbucks!” That money can add up quickly and we soon realize a small change in lifestyle can save you thousands of dollars every year. It’s so important to recognize small ways to save money - especially when it comes to running your business.
We refer to Krista Hilton of Hilton Society whose practices shed light on the effects of small expenses in your business. Krista does business audits to discover areas where companies are losing unnecessary cash. She finds that the average business is losing around $30,000 every year due to operational mishaps!
Everyday salons are unknowingly letting hair color walk out their door unpaid for. Some salons are allocating 10% of the service to pay for color, while other salons tack on a chemical fee to the bill to attempt to cover the costs of the color used. There are even some salons that do NOT charge the customer for the hair color. All of these methods are falling short because of how expensive hair color is thanks to the rising trends presented to us through social media. The only way to really understand how much hair color you are using per client is to measure it. This is where SalonScale comes into play.
Stylists can now use SalonScale to measure and calculate the cost of every bowl used per client. What salons discover the first time they use it is usually pretty unsettling. Some hair color applications can cost $10 or $15 which is near what salons are guessing and charging for chemicals, but even if the salon undercharged $3, that can add up to almost $10,000 per year!
SalonScale is finding though that most colors cost $20-$30. Some more elaborate looks can cost up to $80 in color costs alone. Can you imagine the money lost every day when a hair salon is only charging the customer $10 for what was used on their head? You can now use our SalonScale Calculator to see how much more you might be missing out on in your business.
It’s not a small leak anymore and separating parts from labour is the only way to manage it. The next time you choose to engage in your regular guilty-pleasure spending habits remember this: coffee is dirt cheap compared to balayage.
If you feel like you are in need of a business audit, Krista Hilton is offering an initiation package for first time members! If you’re interested DM us on Instagram and we’ll give you a discount code to receive 15% off ;)