The 2013 SALON TODAY 200: Planned Profitability

By Stacey Soble | 01/17/2013 2:36:00 PM

 

The pinnacle of succes for any salon owner is how much profit their business can generate. We asked ST200 applicants to prepare a presentation to fellow salon onwers that outlined their long-term strategies for growing a sustainable business and cultivating a profit. We awarded extra credit to businesses that proved they had clear-cut system for poth projecting and meeting their goals and to salons and spas that could generate profit without relying on the service provider income of its owners. In addition, we required applicants to back up their numbers with signed statements from their business coaches or accountants.

Bell Tower Salon, Medi-Spa & Store
Wyomissing, PA
belltowersalonspa.com
Carolyn Helms
SQUARE FEET: 8,000
TOTAL EMPLOYEES: 52
2011 PROFITABILITY: 8%
AVERAGE CUT & STYLE: $50
BEST-SELLING RETAIL: Oribe, Bumble and bumble
COLOR: Wella
TECH SUPPORT: Millennium, Demandforce
ASSOCIATIONS: Intercoiffure, ISPA, ISBN
“You must develop clear, concise revenue goals and motivate your team to meet these goals. Make it clear to managers that goals are non-negotiable and failure is not an option. By implementing these strategies, we have become less dependent on the seasonal trends of our business and can project sales and costs within about 2 percent.”

Brown and Deline Salon
Ann Arbor, MI
brownanddeline.com
Cathy Issel
SQUARE FEET: 3,800
TOTAL EMPLOYEES: 55
2011 PROFITABILITY: 3%
AVERAGE CUT & STYLE: $35
BEST-SELLING RETAIL: TIGI, Moroccanoil, Aveda
COLOR: Kemon, TIGI, Redken
TECH SUPPORT: Millennium, Demandforce, Constant Contact, SpaBoom, LiquidWeb
ASSOCIATION: NCA
“No matter how good you get, schedule an annual check-up with an outside coach and see what other salons are doing. Learn the established guidelines for spending by expense category and keep your expenses in line with industry norms.”

Centre Salon & Spa, Westminster
Westminster, CO
centresalonwestminster.com
James Pacifico and
Cathy Schafer
SQUARE FEET: 3,000
TOTAL EMPLOYEES: 25
2011 PROFITABILITY: 9%
AVERAGE CUT & STYLE: $36
BEST-SELLING RETAIL: Aveda
COLOR: Aveda
TECH SUPPORT: Salon/SpaBiz, Demandforce, Heaven Group
“We work with World Class Financial Services on a monthly basis to complete our financials, compare our results to industry benchmarks and our budget, as well as consult to make necessary changes to improve sales and profitability. Having a fresh perspective each month has been invaluable.”

Josephine’s Day Spa & Salon

Houston, TX
josephinesdayspa.com
Vivian Yeh
SQUARE FEET: 5,000/3,000
TOTAL EMPLOYEES: 60
2011 PROFITABILITY: 4%
AVERAGE CUT & STYLE: $55
BEST-SELLING RETAIL: Aveda
COLOR: Aveda
TECH SUPPORT: SalonBiz, Demandforce
ASSOCIATION: PBA
“We were previously a commission-based salon and profitability was unpredictable—we were successful by coincidence, not by design. After extensive research, we went with team-based pay. It took two years to go through the process with Strategies, but now we have all our finances under control so we know our bottom line and break-even point and therefore our goals.”

Metro for Men
Irvine, CA
metroformen.com
Krista Martin
SQUARE FEET: 2,000
TOTAL EMPLOYEES: 12
2011 PROFITABILITY: 17%
AVERAGE CUT & STYLE: $42
BEST-SELLING RETAIL: Metro for Men, Nioxin, Aveda
COLOR: Goldwell, Aveda
TECH SUPPORT: Millennium, Demandforce
ASSOCIATION: PBA
“I hired a coach and together we created a strategy that helped me become more profitable. We raised prices where necessary, cut unnecessary expenses and devised a plan to change my payroll issue. I created my first Cash Flow Plan which showed the positive effects of making certain changes, and now I do that every year and look at it weekly.”

Nuovo Salon Group

Sarasota, FL
nuovosalongroup.com
Terry McKee and James Amato
SQUARE FEET: 3,300/3,000/2,000
TOTAL EMPLOYEES: 60
2011 PROFITABILITY: 8%
AVERAGE CUT & STYLE: $57
BEST-SELLING RETAIL: Aveda
COLOR: Aveda
TECH SUPPORT: SalonBiz, Demandforce
ASSOCIATIONS: The Day Spa Association, Intercoiffure, PBA
“Our road to profitability started when the owners saw Neil Ducoff give a presentation on ‘Knowing Your Numbers’ at Serious Business. It was a sobering experience to realize we didn’t know how to read a Profit and Loss statement, a balance sheet or a Statement of Cash Flow. We became committed to our financial literacy.”

Paul Kenneth Salon & Spa

Woburn, MA
pksalon.com
Paul Kenneth Costa and
Jackie Maniaci
SQUARE FEET: 3,700
TOTAL EMPLOYEES: 18
2011 PROFITABILITY: 2%
AVERAGE CUT & STYLE: $70
BEST-SELLING RETAIL: PK Professional and PK ECO Chic
COLOR: Matrix, Logics, L’Oréal Professionnel
TECH SUPPORT: Milano
ASSOCIATIONS: Intercoiffure, PBA
“We have one partner, Paul Kenneth, who’s been a hairdresser for 50 years and the other, Jackie Maniaci, who is a systems engineer, and marketing and business guru. Our systems allow us to adjust where necessary to achieve maximum results.”

Salon Allure Inc.
Huntsville, AL
salonallurehuntsville.com
Paula Lecher and Michelle McGough
SQUARE FEET: 2,600
TOTAL EMPLOYEES: 29
2011 PROFITABILITY: 3%
AVERAGE CUT & STYLE: $37
BEST-SELLING RETAIL: Pureology, Redken
COLOR: Redken
TECH SUPPORT: Envision, Constant Contact
ASSOCIATION: NCA
“All goals—individual and corporate—are reviewed with staff on a monthly basis. Stylists move up the pay scale by meeting individual goals which are reviewed monthly. The goals are based on the salon’s needed revenue to sustain profitability.”

Salon JoVon

Brecksville, OH
salonjovon.com
Jo Ann Guadio-Byrne
SQUARE FEET: 1,600
TOTAL EMPLOYEES: 13
2011 PROFITABILITY: 12%
AVERAGE CUT & STYLE: $40
BEST-SELLING RETAIL: Redken, Pureology
COLOR: Redken
TECH SUPPORT: Envision, Constant Contact
“By combining great systems from an excellent consultant, holding myself accountable, and including my team, I now own a salon that is debt-free and allows me to take home a paycheck without being behind the chair the past four years. I was even able to take the summer off and spend it with my kids.”

Salon Soca

Chicago, IL
salonsoca.com
Brigette Sobus
SQUARE FEET: 1,500
TOTAL EMPLOYEES: 14
2011 PROFITABILITY: 28%
AVERAGE CUT & STYLE: $65
BEST-SELLING RETAIL: Aveda
COLOR: Aveda
TECH SUPPORT: Harms, Demandforce
ASSOCIATIONS: ABN, CC, PBA
“When I was purchasing the salon seven years ago, I hired business coach Steven Gomez and worked with him to increase sales by more than 30 percent each year, as well as learn my numbers inside and out, including budgets, cash flow projections, break-evens, correct pricing, etc. The most valuable thing I learned was to lead, coach and manage people.”

Additional Honorees

Changes Hair Studio & Spa, Kamloops, BC
Garbo A Salon & Spa, Austin, TX
Interlocks Salon Spa Cosmetics, Newburyport, MA
Omagi Salon & Spa, Louisville, KY
The Hair Company, Leonardtown, MD

 

 

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ABOUT THE AUTHOR: Stacey Soble

Stacey Soble Stacey Soble, Editor in Chief of Salon Today

Stacey has been involved in the conversation of salon business for 14 years—as a reporter, a consultant and as the Editor in Chief of SALON TODAY.

Read Stacey Soble's Blogs You can e-mail Stacey at ssobley@vancepublishing.com.

 


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