Owners of SALON TODAY 200 salons/spas on average look to three key performance indicators for assessing the health of their businesses: Productivity, Average Ticket and Client Retention. Salons in the Northeast are more likely to rely on productivity while salons in the West are more likely to use client retention.
When asked where they feel vulnerable, SALON TODAY 200 owners reported they feel they have the least control over inventory, shrinkage and service supplies, including backbar and color. They feel they have the most control over retail commission and service payroll.
When asked what keeps them up at night, SALON TODAY 200 owners report tossing and turning over a lack of ability to reduce expenses and worrying that their staff is not kept busy enough.
Over half (56%) maintain an annual budget for salon improvements.
Three in four of the SALON TODAY 200 salons order their retail products once a week, and the majority of the honorees count and adjust their inventories either weekly (36%) or monthly (28%).
To be eligible for consideration in the ST200 for 2014, salons had to meet the following criteria:
ESTABLISHMENT: The salon or spa opened on or before January 1, 2011.
VOLUME: The salon/spa generated annual service and product sales revenues of at least $250,000 per year since 2011.
WILLINGESS TO SHARE: The owner completed the application information portion of the form, providing statistical information about the business, and completed at least one of the Best Practice sections, including the essays.
VERIFICATION: IF the applicant competed in the Growth category, the owner submitted tax documentation to verify financials for 2011 and 2012. If the applicant competed in the Planned Profitability section, the owner submitted signed verification from a third-party professional (business coach or accountant) that they projected a certain profit percentage, then what they actually reached.
The ST200 Selection Process
The SALON TODAY 200 is comprised of 100 honorees in the Growth category, and 100 honorees divided among 10 different Best Practice categories. All applications appearing in Growth are sorted based on the percentage of growth in gross sales revenue from 2011 to 2012 and the 100 highest become the first 100 honorees. For the remaining 10 Best Practice categories, judges evaluate applicants in each category including statistical information and essays, identifying the remaining 100 honorees. Salons may capture honors in more than one category, but are only profiled once in this issue. For additional wins, they are listed under “Additional Honorees” under each category. For the first time in ST200 history, we had a two-way tie for the final ranking position in Growth, necessitating an “Additional Honoree” in that category as well.
SEE THE HONOREES IN EACH CATEGORY:
• 2014 Honorees in Advanced Education
• 2014 Honorees in Compensation and Benefits
• 2014 Honorees in Customer Service
• 2014 Honorees in Enviromental Sustainability
• 2014 Honorees in Philanthropy
• 2014 Honorees in Planned Profitability
• 2014 Honorees in Recruitment and Training
• 2014 Honorees in Retail and Merchadising
• 2014 Honorees in Retention and Referral Programs
• 2014 Honorees in Technology
• 2014 Honorees in Growth, Part One
• 2014 Honoress in Growth, Part Two