Salon Operating Expenses
Where does your money
go?
Revenue
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Hair Cut (styles) Services
Nails
Tanning Beds
Retail Sales (Product)
Colors
Permanent Waves
Hair Extensions
Expenses
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Salaries
Rent
Supplies
Advertising
Depreciation
Laundry
Cleaning
Utilities
Repairs
Insurance
Telephone
Miscellaneous
Expenses: percent of gross
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Salaries
Rent
Supplies
Advertising
Depreciation
Laundry
Cleaning
Utilities
Repairs
Insurance
Telephone
Miscellaneous
53.5%
10%
5%
3%
3%
1%
1%
1%
1.5%
0.75%
0.75%
1.5%
Review: percent of a number
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What is 53% of $163,000?
Change the percent to a decimal
53% = 0.53
Multiply
0.53 x $163,000 =
$86,390
Wages 45-55%
Wages of people in your Salon
Example:
Gross income in the Salon is $479,000.
How much should you budget for wages?
45% of $479,000
.45 x $479,000 =
$215,550 for salaries
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