The simple picture presented above is made more complex by the addition of retail products to the salon business.A new level of expenses and profits must be factored into the calculations.
The simple picture presented above is made more complex by the addition of retail products to the salon business.
Here are some of the expenses that must be considered in your salon operation: rent, utilities, professional services, telephone service, insurance, advertising, labor and equipment.
The big cost for many tanning salons is the equipment.
The amount is based on how many sessions are given and what is charged for each session.
Another portion of your total income will be derived from retail sales and from other services you provide.
However, the manufacturers of tanning equipment have come a long way in terms of offering enough models to satisfy nearly every budget.
Salon owners should project expenses and income before they even begin, hereby avoiding the possibility of unwelcome surprises later.Let them serve as a guide when considering what kind and size of salon to open.Research the actual costs in your area and adjust the tables accordingly.Construction will range from three to eight weeks, depending on size, complexity and many other variables. Many designers maintain that they have been involved with 1,000-square-foot installations that cost 0 per square foot, and others four times the size that came in at only per square foot.Design, material and labor are all factors that make every job a unique situation.It is important for a business to set a budget for each aspect of the business and account for each separately.This will check the relative profits of each part and illustrate where improvements and adjustments must be made in the merchandising plan.Some salons prefer to lease equipment because of service contracts, convenient terms, tax advantages and rapid technological advances that tend to date equipment quickly.Equipment is a major expense to many salons and the cost is a major drawback to entering the business.Living off of the depreciation of your equipment can give the illusion that you are making money, when in actuality, you're just taking it out of the business.When possible, give yourself time to get the job done.