Are you working flat out in your salon, always busy, but still struggling to pay yourself properly? It's a common trap: busyness doesn't automatically mean profitability. This episode reveals the four critical numbers every salon owner MUST track to turn their hard work into real profit.━━━━━━━━━━━━━━━━━━━━📊 WHAT YOU'LL LEARN:BUSY VS. PROFITABLE:* Busyness measures inputs (hours worked, number of appointments, clients through the door).* Profitability measures outputs (what's left after all the busyness and activity).* It's possible to be 100% booked and losing money if your pricing, costs, or service mix are incorrect.* The real question: "Am I busy doing the right things at the right price to generate profit?"FOUR CRITICAL NUMBERS YOU MUST KNOW:* **1. AVERAGE CLIENT SPEND (Average Bill):** * Calculate: Total revenue divided by the number of guests or appointments in a month. * Problem: If your average bill is too low, more busyness won't fix your profit problem; it just means more work for less return. * Action: Monitor monthly, know what it needs to be to hit targets.* **2. COLUMN UTILISATION:** * Calculate: (Amount of time booked / Amount of time available) x 100. * Sweet spot: 80-85% for most salon businesses. * Why 100% is not ideal: No elasticity, leads to frantic work, no buffer for running late or sick team members. * Below 70%: Indicates a demand problem or a client retention problem.* **3. WAGE-TO-REVENUE RATIO:** * Calculate: (Total wage bill, including yourself / Total revenue) x 100. * Target: Should typically not run above 40% of revenue for premises-based salons (includes PAYE, NI, pensions). * Above 40%: Profit will be squeezed. Above 50%: Profit is severely compromised. * Exposes problems of underpricing relative to wage costs.* **4. PROFIT PER TREATMENT:** * Problem: Your most popular treatments are not always your most profitable ones (e.g., a long nail service versus a quick brow treatment). * Action: Knowing this number changes what you promote, what you can afford to discount, and what services you might even phase out.WHAT TO DO WHEN YOUR NUMBERS AREN'T GREAT:* **Average Bill Too Low:** Look at your service mix (promote profitable ones), review pricing, improve upselling or cross-selling.* **Low Utilisation:** Address marketing or retention issues. Start by rebooking lapsed clients.* **High Wage Ratio:** Focus on 1. Increasing takings, 2. Reducing hours, or 3. Repricing services. Often a combination of all three.* **Low Profit Per Treatment:** Don't lean into low-margin services heavily; reconsider their role in your offering.━━━━━━━━━━━━━━━━━━━━📊 RESOURCES:Get Paid Properly: getpaidproperly.com━━━━━━━━━━━━━━━━━━━━💬 WORK WITH ME:1:1 Coaching: https://buildyoursalon.com━━━━━━━━━━━━━━━━━━━━🎧 LISTEN:YouTube: https://www.youtube.com/@BuildYourSalonSpotify: https://go.philjackson.me/SpotifyApple Podcasts: https://apple.co/3MZp6jP━━━━━━━━━━━━━━━━━━━━CHAPTERS:0:00 - The Difference Between Busy and Profitable1:05 - The Salon "Busyness Trap"2:05 - Why You Need to Make Friends with Numbers2:45 - Number 1: Your Average Client Spend4:10 - Number 2: Your Column Utilisation Sweet Spot6:45 - Number 3: Your Wage-to-Revenue Ratio9:45 - Number 4: Profit Per Treatment11:50 - What to Do When Numbers Are Low14:20 - Your Next Steps to Salon Profitability15:00 - Work with Phil on Your Salon Strategy#salonprofitability #salonpricing #salonbusiness #salonowner #buildyoursalon━━━━━━━━━━━━━━━━━━━━Questions? phil@buildyoursalon.com

Phil Jackson, your Queen of Salons, discusses the importance of effective quarterly strategic planning for salon owners. He guides viewers on how to properly map out actions beyond just setting revenue goals, emphasising that good planning is crucial for business growth. This video encourages salon owners to develop a clear strategy and focus on goal setting for a thriving business.━━━━━━━━━━━━━━━━━━━━📊 RESOURCES:1:1 Coaching: https://buildyoursalon.com━━━━━━━━━━━━━━━━━━━━💬 WORK WITH ME:1:1 Coaching: https://buildyoursalon.com━━━━━━━━━━━━━━━━━━━━🎧 LISTEN:YouTube: https://www.youtube.com/@BuildYourSalonSpotify: https://go.philjackson.me/SpotifyApple Podcasts: https://apple.co/3MZp6jP━━━━━━━━━━━━━━━━━━━━CHAPTERS:0:00 - Introduction to Q2 Planning1:00 - Why Q2 is a Big Opportunity2:00 - The Problem with Reactive Planning2:50 - How to Set Your Q2 Revenue Target4:10 - Breaking Down Monthly Revenue Targets5:20 - Identifying Your Marketing Gap6:20 - Key Q2 Marketing Moments to Plan7:40 - Checking Team Capacity and Finances9:00 - How to Create Your Simple Q2 Plan9:40 - Next Steps: 1:1 Coaching with Phil#SalonBusiness #SalonStrategy #SalonPlanning #Q2Planning #BuildYourSalon━━━━━━━━━━━━━━━━━━━━Questions? phil@buildyoursalon.com

RESOURCES:Memberships Made Easy: the programme for building a salon membership that actually works. https://queenofmemberships.com

Falling out of love with the work that built your business is not failure. It is evolution. And a membership might be the most elegant way to make that transition without abandoning the clients you actually want to keep.

This week I am answering a brilliant question from Summer at Flourish Beauty and Academy in Devizes, who wants to use a nail membership to pivot toward skin treatments. The answer applies to any salon owner who wants to reshape their column without burning down what they have built.

WHY THIS INSTINCT IS RIGHTMost salon owners who want to change direction either do nothing and stay stuck, or go cold turkey and lose the clients they built their business on. Summer has found a third path. A membership is the bridge that lets you honour those long-term relationships while reshaping your column on your terms.

THREE THINGS A TREATMENT-SPECIFIC MEMBERSHIP MUST HAVE

1. ABSOLUTE CLARITY ON WHAT IS INCLUDEDTie it to one service or one group of services. One structure, no exceptions.The acid test: you must be able to describe your membership in one sentence. If it takes more than one sentence, it is too complicated. That is probably why a previous membership did not convert.
2. A PRICE THAT REFLECTS THE RELATIONSHIPThis is not a bargain basement discount membership. These are your best long-term clients and they are getting VIP access to a specific team member. Price it accordingly.A 10-15% loyalty reward makes sense. Beyond that, you are undervaluing what you are actually offering.Consider raising your standard prices at the same time as launching the membership.
3. A TRANSITION TIMELINE WITH BOUNDARIESLet your favourite clients hear about it first. Give them a reason to join: locked-in price, continued access, priority booking.Four to six weeks is enough of a launch window. Get your founder members in and locked in.Then hold the line. If someone has not joined the membership, they do not get to book those services. Do not be swayed.

THE ONE RISK TO WATCHThe membership manages the exit. Something else has to manage the entrance.If you launch the nail membership but do not actively fill that freed-up space with skin consultations and new treatment offers, you will end up with white space and panic. Get the new menu ready at the same time.

WORK WITH ME:1:1 Ultimate Clarity: https://tidycal.com/philjackson/1to1-enquiryFull details: https://buildyoursalon.com

LISTEN:YouTube: https://www.youtube.com/@BuildYourSalonSpotify: https://go.philjackson.me/SpotifyApple Podcasts: https://apple.co/3MZp6jP

CHAPTERS:0:00 - Evolving Away From the Work That Built Your Business0:24 - How March Is Going and the Listener Question1:12 - Introducing Summer's Question (Flourish Beauty, Devizes)2:51 - Why the Instinct Is Right3:39 - The Third Path: Memberships as a Transition Tool4:30 - Even Solopreneurs Can Use This Approach5:17 - Thing 1: Absolute Clarity on What Is Included6:06 - The One Sentence Test for Membership Clarity6:56 - Thing 2: Price That Reflects the Relationship (Not the Discount)7:38 - Thing 3: Transition Timeline and Holding the Line8:23 - The Risk: Make Sure You Fill the Space You Free Up9:13 - Memberships Made Easy at queenofmemberships.com

#salonmembership #salonbusiness #beautysalon #salonowner #saloncoach

Questions? phil@buildyoursalon.com