If you don’t know your numbers, you don’t know your business.

However, the onus shouldn’t be solely on the salon owner to understand the business. 

We all know that there is never a lack of chatter in a hair salon. Conversations are constantly happening between customers and stylists, and stylists are conversing amongst themselves. The atmosphere is beloved.

As much as you want to hear the latest from each other… You also want to encourage a form of communication in your salon that focuses on the business, including how each stylist impacts the business. 

You should be empowering your staff to know the business side of the salon. 

Know Your Numbers

The profitability of a salon does not rest solely in the hands of the salon owner, salon manager, or salon operations manager. It is crucial that all stylists know the cost it takes to run the business. 

Hair color is one of the top 3 expenses in a salon and continues to increase as the annual inflation rate increases 8.6% in the US. If your stylist doesn’t understand the cost of hair color, profits will continue to walk out the door or get poured down the drain. Being cost-aware, empowers your stylist to be more mindful when mixing. SalonScale allows all hairstylists to see the cost of hair color and other back bar products. They will be able to see the exact cost it takes to achieve each client’s dream hair in real-time. 

Hairstylists are the ones using back bar products day in and day out. However, if you never communicate the costs with them, you will never be able to decrease your expenses. And in order to raise cash flow, you need to increase your revenue or decrease your expenses. 

Build Confidence in Your Employees

Stylists will continue to over-mix color and not charge accurately for the amount they are using until you sit down and have a conversation with each of them. To them, time is money and creating an environment where stylists can mix just more if need they rather than rinse down the drain will be effective. The vitality of your salon rests on your pursuit to empower your staff to understand the business. Otherwise, your back bar will continue to cause a bigger leak in your business when you don’t: 

• Weigh your color
• Charge for how much product is being used
• Mix mindfully (See blog to get tips for mindful mixing)
• Track your cost of goods and services
• Have a lean inventory system

Additionally, It is more impactful when you physically show your stylist how much they could have been making rather than explaining verbally.  When they can physically see the numbers they are more willing to make a change. 

You must empower your stylist to know the cost of hair color so that they have more confidence during the consultation process. This allows stylists to be fully transparent with their clients from the start. Help your stylist build confidence and give them the power to make changes in the salon. 

Work Collaboratively 

A good leader empowers those around them and creates an environment that encourages open communication and participation. Most owners fall into the trap of thinking they have to solve all the salon issues on their own. You don’t have to come up with all the solutions yourself. 

Salon owners are surrounded by so many creative, intelligent and successful hair stylists. You would be hurting your salon more if you don’t utilize their brilliant minds and make them feel involved with the salon operations.

Data is power. Ensure you are providing your team with the data so that everyone is grounded by the facts to make unemotional decisions. 

Summary

It is just as important for a salon owner to understand the numbers compared to the stylists. When you empower your employees to understand the business side of the salon you instill more confidence in your stylists and create a salon built on transparency. When everyone in the salon has an understanding of your cost of goods sold it will help you increase your cash flow.