Jason Everett from the High-Performance Salon Academy created a course with us on salon success secrets. In the course, he shares valuable insights about how you can make more money in your salon, make your life easier, and make sure that every single person on your team knows exactly what their goals are. Creating more profits and free time for you as the salon owner.
Cost Of Goods Sold
One of the biggest problems in most salons is having so many things to track, measure and manage that it can be overwhelming. Are you still counting box tops to keep track of inventory? In an age of technology, there has to be a better way to track, manage and order your backbar.
There is! SalonScale is a complete backbar management system app, that allows you to patch up the leaks in your business. One of the ways it does that is by allowing you to easily manage your cost of goods sold, and even make a profit on them.
What is Cost of Goods Sold (COGS)? The materials used that go into helping achieve the desired outcome for a service. Here’s some examples:
In the past there was never a digital solution to track the cost of goods sold, so you did your best to estimate these costs.
Using SalonScale in your salon you can now keep track of product usage, product waste, and formula storage. Many salons have switched to a parts and labor pricing model and added SalonScale and have had their most profitable years yet. Guests, stylists and the business can all benefit from this model when implemented correctly.
Why would your stylists want to adopt this new technology? Every day we are adapting to technology whether it’s ordering a ride from your phone with Uber, booking a flight in 2 seconds from your phone, or shopping online. Technology has just quite simply made our lives better. The same goes for your backbar, the ability to be able to use this technology to track, measure and manage, all from an app, is a gift to the salon industry. The more profitable the salon is the more income the stylists are able to make.
What will my clients say? Even one client resisting can create a problem, so it’s important to implement it in a transparent way to build trust. Be honest with your clients and tell them you are charging them only for exactly what is used in their service, nothing more or less. Clients actually get excited about being charged fairly as they can see exactly where their money is going.
Boost Your Cash Flow
Finding a cash flow-producing asset in your salon is a big deal. Previously most salons’ backbars have been a black hole, losing money. But with SalonScale you can turn the backbar into a profit center. The High Performance Salon Academy has a tool that allows you to find the perfect markup for your salon based on your numbers. There should be nothing in your business that you don’t profit from.
Get In The Drivers Seat
Running a salon is HARD, the average salon only profits 6-8%. By implementing SalonScale into your business you will increase your profits, put more money in the pockets of your staff and create better transparency and trust in your salon. We are here to help! If you want more information you can complete the full Salon Success Secrets Course for FREE!
Ready to take action towards a profitable salon? Let’s do it!