Management Practices

ST200 Class of 2010 Summary

Web Editor | July 10, 2011 | 3:09 PM

ST200 Class of 2010 SummaryClass Picture

Who is the ST200 Class of 2010? If you took a composite picture of the typical ST200 owner, you would see a salon and spa that ...

  • Opened its doors in 2000.
  • Occupies 4,915 square feet of space.
  • Earned an average of $1,665,466 in gross revenue in 2008.
  • Experienced an average 21-percent increase in revenues from 2007 to 2008.
  • Received 33 percent of their gross revenues from hair cutting and color service sales.
  • Charged an average of $48.75 for a shampoo, cut and style.
  • Charged an average of $64.70 for a single-process color.
  • Employed an average of 35 employees.
  • Spent almost half (48%) their expenditures on labor costs.
  • Is a member of one or more professional associations.

Through the Years

Who says 2008 ended on a bad note? Even though SALON TODAY broadened the focus of the competition to include best practices, the SALON TODAY 200 as a class continued to demonstrate strong growth. In 2003, the average gross revenue was $1,025,730 compared with the $1,665,466 reported for 2008. Despite the economic crash, 2008 gross revenues demonstrated an average 21 percent increase over 2007—a few percentage points slower than years earlier, but still a healthy growth rate.

What’s in a Name?

  • The SALON TODAY 200 Class of 2010 yields some interesting observations when it comes to the name game:
  • Five salons had a foreign affair, playing with translations of the word beauty: Beau Monde Spalon; Bella Capelli Sanctuario, Bella Luci Salon, Bella Salon and Day Spa, and Belle Epoque an Atelier Salon.
  • At least eight got colorful: Green Peridot, Greener Grass Hair Color and Designs, Indigo Home for Hair & Body, Indigo Salon and Spa, Jade Aveda Salon, Jungle Red Salon, Red 7 Salon and Salon Orange Moon.
  • While others explored the flora and fauna: Lemon Lime, Mango Salon, Tangerine Salons, Wildflowers Salon and Wisteria Salon Spa.
  • And, 11 got right to the point, starting their name with word, salon.

ST200 Class of 2010 SummaryRaking It In

When the SALON TODAY 200 Class of 2010 looks at their gross revenues by category, hair cutting services and hair coloring services are head to head with 32% each, followed by retail sales at 18%, skincare and bodycare services at 11%; nail services at 5% and chemical services at 2%.

And, Breaking it Down

Unfortunately, what comes in also goes out. At 48% labor costs accounts for almost half of all ST200 expenditures, followed by supplies at 11%, rent/mortgage at 8%, taxes at 5%, marketing/advertising at 3%, and conventional employee benefits, education and training, utilities, professional services and insurance at 2% each. Owners did keep some of the pie, with 4% of the expenditures allotted for owner compensation and 6% making its way into profit. (Other responses accounted for 5%.)

Ramping Up

On average, for each $25,000 to $34,000 in sales, the ST200 add on another employee.

Regional Differences

The states with the largest number of ST200 salons were California, Pennsylvania, Texas and Ohio. Regionally, 32% of salons were located in the South; 30% in the Midwest; 20% in the Northeast; 17% in the West and 1% were outside the United States. Regionally, there were some interesting differences:

  • Salons in the Midwest tend to be larger than other regions.
  • Salons in the South experienced a much higher growth rate (31%) from 2007 to 2008 than salons in the Midwest or the Northeast.
  • Salons in the West charge significantly more for both cutting and coloring services than salons in other parts of the country.
  • Retail sales represent a higher percentage of gross revenues for salons in the Midwest and West.
  • Rent/mortgage and insurance expenses are a higher percentage of total expenses for salons in the West.

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