Client Retention Guidebook
Everything you need to know about client retention as a salon owner.
2014 SALON TODAY 200: Planned Profitability
Introducing the 2014 SALON TODAY honorees for Planned Profitabililty.
December 3, 2013
5 min to read
Generating growing revenues is one measure of success for salon and spa business, but how much does the business and owner retain once all the costs are deduced. Profitability is the true measure of an owner’s business acumen. We asked ST200 applicants to prepare a presentation to fellow salon owners that outlined their long-term strategies for growing a sustainable business and cultivating a profit. Extra credit was awarded to salons and spas that proved they had clear-cut systems for both projecting and meeting their profit goals.
As You Like It
Bonita Springs, FL
asyoulikeitsalonaveda.com
Corinne Kleinberger
SQUARE FEET: 960
TOTAL EMPLOYEES: 3
2012 PROFITABILITY: 58%
AVERAGE CUT & STYLE: $63
BEST SELLING RETAIL: Aveda
COLOR: Aveda
TECH SUPPORT: SalonBiz, Constant Contact
“The best long-term strategy for sustainability and profitability is to develop a salon culture of systems and operations geared to increase revenue, while benefiting the guest and stylist at the same time.
Centre Salon & Spa, Westminster
Westminster, CO
centresalon.com
James F. Pacifico and Cathy Schafer
SQUARE FEET: 3048
TOTAL EMPLOYEES: 25
2012 PROFITABILITY: 14%
AVERAGE CUT & STYLE: $39
BEST SELLING RETAIL: Aveda
COLOR: Aveda
TECH SUPPORT: SalonBiz, Spa Biz, Demandforce
“We track four salon initiatives daily: retail per service ticket, pre-booking, retention of existing and new guests, and percentage of guests purchasing product. The benchmarks give us a clear picture of the habits of our employees and a hands-on approach to coaching.”
Mango Salon
Richmond, VA
www.mangosalon.com
Patrick Heaney & Roberta Heaney
SQUARE FEET: 4000, 2000
TOTAL EMPLOYEES: 90
2012 PROFITABILITY: 3%
AVERAGE CUT & STYLE: $74
BEST SELLING RETAIL: Aveda, Bumble and bumble
COLOR: Aveda
TECH SUPPORT: Millennium, Demandforce, Survey Monkey, Constant Contact
ASSOCIATIONS: PBA
“The concept for our system was conceived from completing the Salon Management Program through the UCLA Anderson School of Business. We combined that concept of ‘key result areas’ with Neil Ducoff’s No-Compromise Leadership to design our performance management system.”
Metro FOR MEN
Irvine, CA
metroformen.com
Krista Martin
SQUARE FEET: 1,900
TOTAL EMPLOYEES: 16
2012 SUSTAINABILITY: 20%
AVERAGE CUT & STYLE: $42, $55
BEST SELLING RETAIL: M by metro FOR MEN, Nioxin, Aveda
COLOR: Goldwell, Aveda
TECH SUPPORT: Millennium, Demandforce, Google Adwords
ASSOCIATIONS: PBA
“I attended a webinar in 2007 that provided benchmarks in the salon industry regarding percentage of income each expense should be within. I instantly pulled my P&L and what an eye-opener. I made a commitment to lower all my expenses by 10 percent and what a difference.”
Modern Salon and Spa
Charlotte, NC
modernsalonandspa.com
Arsalan and Arezo Hafezi
SQUARE FEET: 6200, 6000, 5200, 3500
TOTAL EMPLOYEES: 130
2012 PROFITABILITY: 6%
AVERAGE CUT & STYLE: $56
BEST SELLING RETAIL: Aveda
COLOR: Aveda
TECH SUPPORT: SpaBiz, Constant Contact, Demandforce
ASSOCIATIONS: PBA
“Having goals and budgets has put all of our locations managers on heightened awareness of how the actions in their locations affect the bottom line.. By giving managers ownership of inventory, this has made them vested in what they are ordering, shrinkage and waste.”
Randolph's Salon
White Lake, MI
randolphssalon.com
Mary and Scott Randolph
SQUARE FEET: 1700, 2300
TOTAL EMPLOYEES: 55
PROFITABILITY: 22%
AVERAGE CUT & STYLE: $42
BEST SELLING RETAIL: Redken, Pureology
COLOR: Redken
TECH SUPPORT: Envision
ASSOCIATIONS: Summit Salons, 2 to 10 Project
“Profitability is broken down into monthly increments, comparing last year to the current year and setting goals on growth percentages based on our history. Every month, we meet with our salon directors to examine these numbers, celebrate wins, brainstorm shortages and set up a game plan for next month.”
Salon 124 - Genesis Salons
Grayson, GA
Brian Perdue
SQUARE FEET: 2400, 2400, 2400, 3000, 3000, 1900, 1900
TOTAL EMPLOYEES: 220
2012 PROFITABILITY: 11%
AVERAGE CUT & STYLE: $45
BEST SELLING RETAIL: Redken, Pureology, Moroccanoil, Evo
COLOR: Redken
TECH SUPPORT: Millennium, Demandforce
ASSOCIATIONS: ISBN, NCA, 2 to 10
“To closely track how much we are spending, we began to use a cost-per-chemical calculation instead of a percentage of sales because we use different brands of product and it is a more accurate way to track.”
Salon Soca
Chicago, IL
salonsoca.com
Brigette Sobus
SQUARE FEET: 1500
TOTAL EMPLOYEES: 18
2012 PROFITABILITY: 16%
AVERAGE CUT & STYLE: $60,
BEST SELLING RETAIL: Aveda
COLOR: Aveda
TECH SUPPORT: Millennium, Demandforce
ASSOCIATIONS: Cosmetologists Chicago, PBA, ABN
“One of the most valuable things I have learned is how to lead, coach and manage people. My team is my greatest asset, and with them, even in a down economy I have a growth of 5-15 percent per year.”
Shear Art Salon and Spa
Tampa, FL
www.shearart.com
Joanne Powers, Heather Bagby, Laura Dominick, Valerie Gardner, Terri Thomas, Cathy Arce and Tina McIntosh
SQUARE FEET: 3,000
TOTAL EMPLOYEES: 46
2012 PROFITABILITY: 10%
AVERAGE CUT & STYLE: $56
BEST SELLING RETAIL: Redken, Pureology
COLOR: Redken
TECH SUPPORT: Envision, Demandforce
ASSOCIATIONS: Other PBA, The Beauty Industry Council, Summit Salon
“Two of our original owners don’t perform services, but the salon remains profitable because we exercise our business acumen and complete an extensive budget process on an annual basis.”
Signatures Salon
Lake Charles, LA
signaturessalon.biz
Wendy White McCown
SQUARE FEET: 1500
TOTAL EMPLOYEES: 18
PROFITABILITY: 17%
AVERAGE CUT & STYLE: $40
BEST SELLING RETAIL: Bumble and bumble, Intelligent Nutrients
COLOR: Wella Koleston Perfect, Wella Color Touch
TECH SUPPORT: SalonBiz, DemandForce
Additional Honorees
Aveda Institute New Mexico, Alburquerque, NM
Bell Tower Salon, Medi-Spa and Store, Wyomissing, PA
Ginger Bay Salon & Spa, St. Louis, MO
Josephine’s Day Spa and Salon, Houston, TX
Paul Kenneth Salon & Spa, Woburn, MA
The Hair Company, Leonardtown, MD
Warmsprings Salon & Spa, Chambersburg, PA
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