Does your salon make a profit?

What do I mean, does your salon make a profit?

This is a weird one.  But what it means, is does your salon make a profit, once you have taken off all of your costings?

There was a time I struggled with this.  But not any more…   It is m y number 1 priority.  But, that was not always the case!!  If only I had asked this question back when I started.

Not a job

I don’t know about you, but I went into Beauty because it was something I really enjoyed.  I did not plan to be a business.  I was just doing something where I thought I would earn good money and work the hours I wanted!

I cannot be the only person that this did not work out quite how I thought.

I had no clue what to charge, I had no clue what I was doing full stop, if I am being honest.


When I started my business I had just finished college, so you know what I did???  This is horrendous.  I charged the same prices as college.  Possibly a tiny bit more, but not much.  I figured they were covering their costs.  No wonder I was so blinking busy hey…  How crazy is that?  If anyone told me they did that, I would be shouting NOOOOOO!!!  But that was ME!!

I am almost embarrassed to tell you, but you know what?  We live and learn, don’t we?  And 18 years on I am still in business and some of those very first clients are still with me today.

How am I so busy but not seeing much profit?

WELL!! I was literally back to back with customers.

Why wouldn’t I be?  I was charging just the cost for the treatment! I didn’t even factor in any money for me, let alone the business.  How many people have done something like this?

Finanical Abundance

We can sort it!

After speaking with so many of my coaching clients, I am pleased to say many did not do this.  However, they did forget about the business!!

Pricing can seem like it is hard to work out.  But it doesn’t have to be.

It’s easy to start worrying about whether the price is too high or low, and if it’s more attractive than your competitor’s price.  It’s even trickier when it comes to a service as you’re pricing yourself, your skills and experience.

So many salon owners work out treatment cost, based on the product cost itself.  But that is not everything…  If you are a member you get access to a pricing formula template.

Things we need to factor in.

Cost of Beauty products – If you’re doing a manicure, how much does the top coat cost you? Most suppliers should be able to provide you with a cost per service for each treatment, or tell you how many treatments a product can be used for.  But if not, work out how much each product costs you and divide that by how many treatments you will get out of that product.

Variable Costs – These are costs associated with running your business including marketing, bookkeeping, or running your website.  These will increase as your sales increase.

Equipment – How much do your scissors etc. cost, and how often do they need replacing?

Labour – If you need to pay staff, how many hours will they work, and how much will you pay them?

Fixed Costs – Fixed outgoings including rent, rates and salaries that aren’t directly related to a particular treatment.  For example, your receptionist usually works set hours and gets paid the same salary each month.

Now what?

So, we know what needs to be included, but still how do we work all of this out?

I have a formula for working out pricing per treatment.

For example:

Gel Nails – £4 product cost, yet the salon cost is £16.25

Acrylic Nail – £6 product cost, yet the salon cost is £30


You may be surprised by these workings.  Are you charging to little?  WE can so often think £4 is all it costs me so I can get away with charging £15 and there is loads of profit.  WE forget everything else.

Profit first

Have you ever read the book Profit First? Please read it.  It is all about paying YOU first.

To really make your salon make a profit, you need to firstly decide how much profit you want to make.  Sounds weird doesn’t it?

If you want to make £25k profit for your business, not your wages.  Then you need to, firstly, work out how much money your salon needs to take in order to make this profit!

This is what we call reverse engineering.

The right formula

LA Academy can teach you the right formulas and the right systems you need to create THE most streamline and most profitable salon.

Get in touch for your FREE strategy call, so we can assess where you are at in your business and where we can help you be the BEST!!

Lots of love

All said with love and care.  Until next time…