Now in its third year, there is little doubt that the 2 to 10 Project is unlike anything else in our industry. The level of the information and peer networking is unparalleled. Participating salons and spas include market leaders with between two and 10 or more locations. The 2 to 10 category represents 80 percent of the industry’s chain salons.
We are excited to be underway with our annual Financial Performance and ‘Next Practice’ Study as well as announce several other exciting new features to 2 to 10. So, here's what's new in 2013...
What began as a benchmarking study has now evolved into a member organization. A 2 to 10 membership provides data, analysis, leadership experiences, education, peer networks and other resources appropriate for all members of multi-location leadership teams. By serving as a resource center, 2 to 10 works to propel growth opportunities, drive higher profitability and create business succession strategies for its members.
2 to 10 Membership is by invitation only, and members are truly visionaries and drivers in salon practices for the future. They share a quest for information and solutions specifically catered to multi-location market leaders.
By the time this article is published, we will be immersed in the 2013 Study, updating the financial benchmarks and operational guidelines for 2 to10 members. This year’s study consists of:
Financial Performance Report: results from an in- depth study of member Profit and Loss statements complete with quartile rankings in key 15 categories
Next Practice Report: a synopsis based on answers to a 50-question survey of current and future business practices from member salons.
The 2013 Study will be led by Barry Matthews, a top financial professional with over 30 years experience and who served recently as the 12-year chief financial officer for Gene Juarez Salons.
Each of the 45 members will receive a confidential “Find the Money” scorecard with rankings in the 15 performance areas compared to the 2 to10 member group. Rankings are in quartiles and center on profitability, labor, revenue mix, space, cost of goods and more. Member salons and Salon Today readers have found this objective and unbiased information to be incredibly valuable and many have had measurable increases in performance.
All data from the Study and Scorecards are held in strict confidence according to an executed nondisclosure/confidentiality agreement.
2 to 10 is launching its inaugural annual Leadership Conference May 5-6, 2013 in Chicago, at the Westin Michigan Ave. There will be two days of education, inspiration and peer dialogues with a focus on turning ideas into action. Participants will connect with peers as a confidential and dynamic community to learn new solutions to today’s most pressing business challenges.
During the conference, industry leaders will share what drives their success. Expert panels will discuss next practices in the areas of finance, operations, education and marketing. Finally, the results for the 2013 Annual Study will be unveiled at the Conference. We are excited about this event, our amazing roster of committed members, and the knowledge they will share.You must be a 2 to 10 member to attend.
The 2 to 10 Project offered a limited number of carefully vetted sponsors to serve as champions for its growing membership, research and educational events. Thanks to the following sponsors for their financial and other support: Qnity, DemandForce, Professional Beauty Association, Neill Technologies, Chase Paymenttech, Salon Booker and Nuun.
Data from the 2 to 10 Financial Benchmarks Study (Released in 2012):
Results were tabulated by quartile, ranking performance in 15 different 'find the money' categories. Below are a few of the metrics from 2 to 10 salons performing in the top quartile:
4.8% front desk payroll expense
$76,624 revenue per employee
$341 revenue per foot
1.5% merchant fees
$3,277,409 revenue per location
39.3% service payroll (% of service revenues, payroll taxes and benefits excluded)
These numbers were tabulated in April 2012 using 2011 financial statement. The 2013 2 to 10 Study and Member P&L Scorecards will be shared with 2 to 10 members at the May 5-6 Leadership Conference in Chicago, Illinois. Nine months later (March 2014) they will be shared with the general public. Individual business data is strictly confidential and 2 to 10 only shares aggregate, anonymous data in its published findings.
The 2 to 10 Study is being led by Barry Matthews, a 30+ year financial professional and 12-year CFO of Gene Juarez Salons and Spas.
The 2 to 10 Project pledge continues to be that this is an organization of the best, for the best. And that confidentiality and the protection of trade secrets be paramount. We have also pledged that 2 to 10 will get better each year and that positive changes will come based on the input and requests of participants.
Membership in the 2to10 Project is reserved for multi-location market leaders that set the bar for industry excellence and innovation. To be considered as a 2 to 10 Member, please contact Tom Kuhn directly at [email protected].