Business

What Happens to Every Dollar in the Salon

10.23.2017

Hairdressers, here’s why your salon owners are always stressed out: Most salon owners are not making money. 85 percent of the salons in America are not profitable. That’s why there’s so much stress.

Let’s find out what happens to every dollar in the salon, shall we?

• 55 cents on the dollar goes to commissions and payroll for front desk, assistants, and all the people in the salon.
• 15 cents goes to products—supplies that you use in the salon and products you resell.
• 10 cents goes to rent, give or take.
• The rest goes to utilities, credit card fees, insurance, cleaning, technology for software and computers, supplies for paper, coffee, wine, and all the things you give your guests.

Guess what happens with all the rest? Most of the salons have nothing left. In fact, 80 percent of salons wouldn’t even be in business if it weren’t for the owners doing services and putting money that they should keep back in to keep the salon open.

If everybody understood what was really happening with the money, we’d all be a little more understanding. That’s what’s going on with every dollar in your salon’s business. Now, cut your salon owners a break!

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