Success Grown from Within
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by Stacey Soble
2015 Salon Today 200: Planned Profitability
Continually growing service and product sales while trimming expenses is a balancing act for any salon and spa owner and the profit percentage one posts at year’s end is their management scorecard. When a salon owner can step out from ...
December 11, 2014
Scott and Mary Randolph, owners of Randolph's Salon in White Lake, Michigan.
5 min to read
Continually growing service and product sales while trimming expenses is a balancing act for any salon and spa owner and the profit percentage one posts at year’s end is their management scorecard. When a salon owner can step out from behind the chair and grow a sustainable business that can thrive without relying on the owner’s income as a service provider, that’s the mark of a truly successful beauty business. We invited ST200 applicants to prepare a presentation to fellow salon owners showcasing long-term strategies for growing a sustainable business and cultivating a profit. Extra credit was awarded to those who proved they had clearcut systems for both projecting and meeting their profit goals.
BELL TOWER
Wyomissing, PA
belltowersalonspa.com
Carolyn Helms
SQUARE FEET: 10,000
TOTAL EMPLOYEES: 51
2013 PROFITABILITY: 8%
AVERAGE CUT & STYLE: 45
BEST-SELLING RETAIL: Oribe, Bumble and Bumble
COLOR: Wella
TECH SUPPORT: Millennium, Demandforce, Survey Monkey
ASSOCIATIONS: Intercoiffure
“In 2012, our average service provider’s productivity was 89 percent, so we initiated a deliberate recruiting process to hire new service providers to achieve growth in 2014. We also launched a styling lounge to allow our new hires an opportunity to provide services to guests within a quicker time frame.”
ELEMENTS OF STYLE SALON & DAY SPA
Eldersburg, MD
elementsofstylesalon.com
Paris Cimino Javier
SQUARE FEET: 3,300
TOTAL EMPLOYEES: 23
2013 PROFITABILITY: 24%
AVERAGE CUT & STYLE: 46
BEST-SELLING RETAIL: Redken, Pureology, BioElements
COLOR: Redken
TECH SUPPORT: Envisions, Constant Contact
“Our financial planner developed a very useful financial projection spreadsheet for us. This plan shows our progress against our numbers from the previous year and calculates the dollars we need to bring in monthly, weekly and daily to be 10 percent above last year.”
GINGER BAY SALON & SPA
St. Louis, MO
gingerbay.com
Laura A. Ortmann and Jeffrey N. Evenson
SQUARE FEET: 10,000, 2,800
TOTAL EMPLOYEES: 104
2013 PROFITABILITY: 8.2%
AVERAGE CUT & STYLE: 46
BEST-SELLING RETAIL: Aveda
COLOR: Aveda
TECH SUPPORT: Millennium, Demandforce, Spa Boom
ASSOCIATIONS: PBA, 2 to 10
“Our Revenue Plan sets us apart from other salons. Rather than our manager telling team members what they generate in revenue, we collaborate with each team member to determine what they can be expected to accomplish.”
JOSEPHINE'S DAY SPA & SALON
Houston, TX
josephinesdayspa.com
Vivian Yeh
SQUARE FEET: 5,600, 3,000, 1,000
TOTAL EMPLOYEES: 76
2013 PROFITABILITY: 2.8%
AVERAGE CUT & STYLE: 65
BEST-SELLING RETAIL: Aveda
COLOR: Aveda
TECH SUPPORT: SpaBiz, Demandforce
ASSOCIATIONS: PBA
“Daily huddles are done in the mornings and afternoons, 15 minutes before the first guest arrives. The huddle includes the percent to goal, our daily goal, any promotions or announcements, open appointments and booking strategies and a fun fact or quote of the day.”
LEIF'S HAIR STUDIO
Houston, TX
leifhair.com
Leif Christiansen
SQUARE FEET: 2,000
TOTAL EMPLOYEES: 12
2013 PROFITABILITY: 9.62%
AVERAGE CUT & STYLE: $72
BEST-SELLING RETAIL: Aveda, Paul Mitchell, private label
COLOR: Schwarzkopf, Redken, Keratin Complex
TECH SUPPORT: Millennium, Demandforce, Web Openings
“Our professional supplies are entered on a spreadsheet and calculated as 6 percent of our projected gross. We order 26 times a year and always know whether we are over or under budget. We purchased iPads for key employees for monitoring and calculating all of this—a purchase that has paid for itself many times over.”
METRO FOR MEN
Irvine, CA
metroformen.com
Krista Martin
SQUARE FEET: 1,900
TOTAL EMPLOYEES: 16
2013 PROFITABILITY: 16.4%
AVERAGE CUT & STYLE: $39
BEST-SELLING RETAIL: M by metro FOR MEN, Nioxin, Aveda
COLOR: Goldwell, Aveda, Schwartzkopf
TECH SUPPORT: Millennium, Demandforce
ASSOCIATIONS: PBA
“My payroll was at 56 percent of income, and I knew something had to be done. So I hired a business coach and we created a strategy to help my business become as profitable as possible. We raised prices where possible, looked at unnecessary expenses and devised a plan to change my payroll issue.”
RANDOLPH'S SALON
White Lake, MI
randolphssalon.com
Mary and Scott Randolph
SQUARE FEET: 1,700, 2,300, 3,000
TOTAL EMPLOYEES: 65
2013 PROFITABILITY: 28%
AVERAGE CUT & STYLE: $43
BEST-SELLING RETAIL: Redken, Pureology
COLOR: Redken
TECH SUPPORT: Envision
ASSOCIATIONS: Summit Salons, Crystal Focus, 2 to 10
“The future of our company lies in the people we haven’t yet met. This is our philosophical cornerstone, compelling us to always look for the best of the best new talent.”
SALON SOCA
Chicago, IL
salonsoca.com
Brigette Sobus
SQUARE FEET: 1,500
TOTAL EMPLOYEES: 19
2013 PROFITABILITY: 18%
AVERAGE CUT & STYLE: $60
BEST-SELLING RETAIL: Aveda, Keratin Complex
COLOR: Aveda, Goldwell
TECH SUPPORT: Millennium, Demandforce
ASSOCIATIONS: Cosmetologists Chicago, PBA
“Creating systems everywhere leads my business to continued success: front desk systems, assistants systems, stylist systems and management systems. New this year, I have added a full-time manager and a social media manager.”
SOLARIS
Evansville, IN
solarisaveda.com
Amy Carter and Debbie Riegel
SQUARE FEET: 2,400
TOTAL EMPLOYEES: 20
2013 PROFITABILITY: 14%
AVERAGE CUT & STYLE: $35
BEST-SELLING RETAIL: Aveda
COLOR: Aveda
TECH SUPPORT: Salonbiz, Demandforce
ASSOCIATIONS: PBA
“One of my favorite tools to use is a retail and back bar sheet. This sheet gives me the freedom to train others to do the ordering and lets them know how much money they have to spend, but it also allows me to know weekly if we are overusing or overspending in inventory.”
VC SALONSPA
robbinsville, NJ
vcsalon.com
Angela Pantaleone
SQUARE FEET: 2,800
TOTAL EMPLOYEES: 43
2013 PROFITABILITY: 24%
AVERAGE CUT & STYLE: $40
BEST-SELLING RETAIL: Umbrella, Oribe, Kerastase
COLOR: Aveda, Wella
TECH SUPPORT: Millennium, Constant Contact
ASSOCIATIONS: Intercoiffure, PBA
“Know you competitor’s costs and prices, then price yourself above your competition. Let them lose money and clients. And, let them keep the clients who do not help keep them profitable.”
ADDITIONAL HONOREES*
As You Like It Salon, Aveda, Bonita Springs, FL
Centre Salon & Spa, Tiffany Plaza, Denver, CO
Cortello Salon, Jacksonville Beach, FL
The Fixx Hair Studio, New Braunfels, TX
Nuovo Salon Group, Sarasota, FL
RedBloom Salon, Calgary, CA
Salon Allure, Inc., Huntsville, AL
Salon Disegno, Lawrenceville, GA
*Additional honorees have accrued more than one honor in the the 2015 Salon Today 200 and their salon is profiled in another category.
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