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Steve GomezSteve Gomez
Steve GomezSteve Gomez
  • About
  • Coaching
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  • Shop
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  • Contact
  • COVID-19 Support
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Important Budget Factors For Independent Stylists

How To Make Retail Profits Work For You!

October 9, 2017

Do you take your retail sales earned and put it in your account and pay bills with it? While most salons and spas would answer “yes” to this question, this is not a wise financial strategy in the long term. Think of your retail business separately from your service income and your gift card income. In fact each of them should be tracked separately and have their own budgets. For now, let’s set our sights on retail.

For every dollar you bring in with retail sales you can count on roughly 34% (.34 cents) profit after inventory is purchased, commissions are paid and you cover any sales tax, credit card processing, discounts and/or shrinkage. If this amount is left in your bank accounts and used to pay monthly bills then the salon is taking away pure profit and, with it, a chance to make that money work more efficiently. Let’s look at an example of what we mean and then introduce a plan to get that money back into savings.

Let’s say you sell $1,000 a month in retail sales. Based on the averages this would mean a profit of $340 dollars. If this $340 dollars is left in the account to pay monthly bills then it is being lost. Over a 12 month period this adds up to $4,080!

Think about what this amount of money can be used for. You could chunk down credit card debts, make a double loan payment, invest in education or marketing and, of course, build a nest egg by saving for future retirement. Any of this would be smart business, not to mention the boost of confidence and empowerment in seeing true financial progress being made.

Seeing this is powerful, making the change is important but takes some patient steps to make happen. Up to now, the business has been used to having the $340 to pay bills each month, to just take it away with no plan to replace it wouldn’t work. To get this money back the salon or spa would have to grow its average services sales each month to cover it. However, it would have to grow by more than just $340 a month because any service sold includes expenses to perform the service so be sure to add in additional sales growth in the goal to cover commissions, payroll tax, back bar coat and credit card processing.

To learn more, go to my store and grab my book, Financial Fitness! I break this down in depth and you’ll have spreadsheets that go with the book that help you track this.

Once you achieve this goal you will be able to make the profit work for you not to mention feel more confident and inspired about your financial future!

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1 Comment

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  • Len Yanavich
    · Reply

    October 20, 2017 at 6:36 PM

    Steve, so glad to see you’re still following your passion. You inspired me back in the ybn days. I’ll keep looking out for you. Len

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Steve Gomez Business Coach

If you have any questions don’t hesitate to contact me!

  • 7820 Meridian St • Chino, CA 91708
  • 909-597-5369
  • info@stephengomez.net
Tweets by SalonCoachSJG
You never get a second chance to make a great firs You never get a second chance to make a great first impression! 

Be sure you implement steps and guidelines that support the front desk to make specific recommendations that support cash flow growth for the business, empower them to feel a bigger part of the team and hit a home run throughout the clients whole experience with you!
A great way to elevate customer service is how you A great way to elevate customer service is how you dress and present yourself. 

Always be sharp, well-groomed and present a professional image before walking through the door. 

These little things make a BIG impression.
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 #SalonBusinessCoach #SpaBusinessCoach #InterdependentLeadership #StretchAndGrowGoals #customerservice
A Great Way to Exceed Your Financial Goals A grea A Great Way to Exceed Your Financial Goals

A great way to exceed your financial goals is to play the Booking Game! 

Begin each day by looking at who is on your books, analyze their last 3 visits to see purchasing patterns, what they are coming in for and what you could recommend to them that can help them and help you. 

Add up what is on the day and what is possible, and you will that you can exceed expectations for them and for you!
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 #managingexpenses #financialstability #financialsuccess #spa #SalonBusinessCoach #SpaBusinessCoach #FinancialFitness
Improving Retail Results by Tracking Sales You ca Improving Retail Results by Tracking Sales

You can improve your retail results by tracking what you sell and what you don't. 

Notice which products you sell based on client needs, your preference and your salon's goals. 

What should you be recommending more based on the services you provide? 

When you take the time to research this you will improve your customer service and your results.

Factors to Consider in Tracking Retail Sales
- Sales volume by product
- Sales volume by service
- Product preferences by client
- Sales goals and targets
Do you have a budget? One of the most important Do you have a budget? 

One of the most important steps any technician can take is to put a budget plan in place that helps to manage expenses and create a clear goal for what production goals need to be. 

Be sure you take the time to make this happen and improve your results and your quality of life too!

Tips for Effective Budgeting
 - Be realistic in setting goals and budget
 - Monitor expenses regularly
 - Adjust budget as needed
 - Seek professional advice if needed
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#budgetplan #financialstability #financialsuccess #managingexpenses #productiongoals #qualityoflife
When running a promotion for your customers, decor When running a promotion for your customers, decorate appropriately. Put shelf talkers everywhere a customer may be in your business. Think of fun collateral to accompany the shelf talkers. A little decoration goes a long way to stimulate the senses and add to the promotion.

Benefits of Decorating Appropriately
- Attracts attention and increases visibility
- Stimulates the senses and creates a memorable experience
- Reinforces branding and messaging
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#salon #spa #businesscoach #BoostYourBusiness #salonbusinesscoach #beautyindustry #salonowner #spaowner
It’s a wrap! Another successful Financial Fitnes It’s a wrap! Another successful Financial Fitness Workshop with @dmkinternational is in the books today here in Dallas! @20beautynancy and I are honored to partner with a great team of people to serve and support these awesome clinics to grow their knowledge and profits! Let’s elevate! #financialfitness #interdependentleadership #dmkinternational #dmk #dmktexas #clinicprofit #clinicfinance #elevate #liftuplife #lovewhatyoudo #speaker #author #catalyst #futurist
Do you have raving fans? Create your own fan pag Do you have raving fans? 

Create your own fan page and you will. 

Even if you work at a salon you can have your own page and further connect to your clients and your community. 

It will help them, your salon and you!
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#SGBC #salon #spa #clinic #liftuplife #educator #speaker #salonbusinesscoaching #spabusinesscoaching #businesscoach
The greatest use of life is to spend it on somethi The greatest use of life is to spend it on something that outlasts it. - William James

We only have a limited time on this earth, but our impact can be eternal. One of the greatest purposes of life is to dedicate ourselves to something that will outlast us - a cause, a legacy, a contribution to society.

 

 William James reminds us of the importance of using our time wisely and investing it in something that will make a lasting impact. What will you do with your time? How will you leave your mark on the world?

 

 Let's make the most of every moment and strive to create something that will outlast us.
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#trainingplan #SGBC #FinancialFitness #SalonBusinessCoach #SpaBusinessCoach #salon #spa #clinic #salonprofit #spaprofit #liftuplife #educator #speaker #author #catalyst #futurist #beautybusiness #beautybiz
Are you looking for the right salon, spa or clinic Are you looking for the right salon, spa or clinic to work in?

Start by finding out what their vision for the future is and what they value.

Once you know what they believe in and where they want to go will help you see if you are aligned with them.

How will they train you and market you to support your growth? Is there a pathway to increase your income based on performance? 

What benefits do they offer? 

These questions will help you get the answers you need to make an informed choice that is right for you!
Evaluating the Salon's Vision and Values
 - Compare their vision and values to your own personal and professional goals
 - Consider their approach to employee development and client satisfaction
 - Evaluate their reputation and feedback from clients and employees
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#SGBC  #FinancialFitness #InterdependentLeadership #SalonBusinessCoach #SpaBusinessCoach #salon #spa #clinic
Thank you to Allyson and her awesome team at @ally Thank you to Allyson and her awesome team at @allysonbrittany_aesthetics for hosting me today! You are all a great group of people who make a great impact in your community and I’m honored to play a small part in your growth! Thank you @dmk_northeast_tristate for joining us today! Your contributions always make a difference Sybil! Keep elevating! @dmkinternational @phorestsalonsoftware #spabusinesscoach #salonbusinesscoach #spa #clinic #dmk #lovewhatyoudo #teamwork #community #interdependentleadership #financialfitness #liftuplife #phorestsalonsoftware #makeadifference #author #speaker #educator #catalyst #futurist #elevate
Set goals that make you stretch and grow! If it Set goals that make you stretch and grow! 

If it doesn't make you uncomfortable, then then the odds are it won't get you as far as you can. 

A goal without a "By When" date is simply something you hope will happen. 

The moment you add a "By When" date you increase the odds of accomplishing what you say you want.

Tips for Setting a "By When" Date
- Make it specific and realistic
- Break it down into smaller goals and milestones
- Write it down and make it visible
- Share it with someone for accountability
- Celebrate progress and success along the way 
- Does it make you uncomfortable?
-Ask yourself how you will grow by accomplishing it?

#StretchAndGrowGoals #UncomfortableGoals #ByWhenGoals #AccomplishmentGoals #salon #spa #clinic #salonprofit #spaprofit #liftuplife #educator #speaker
Do you have a training plan in place? Be sure you Do you have a training plan in place? Be sure you create a 12 month plan that supports you to develop yourself and your team technically, personally and professionally.

Benefits of Having a Training Plan
 - Improves technical skills and knowledge
 - Enhances professional growth and advancement
 - Boosts confidence and job satisfaction
 - Increases productivity and performance

#trainingplan #SGBC #FinancialFitness #SalonBusinessCoach #SpaBusinessCoach #salon #spa #clinic #salonprofit #spaprofit #liftuplife #educator #speaker #author #catalyst #futurist #beautybusiness #beautybiz
Every meeting you conduct should have guidelines a Every meeting you conduct should have guidelines and a timeline. Take the time to put together your agenda and stick to it. 

Be sure you train your team on what the rules are and hold them to account when needed. 

Get the team involved by assigning homework prior to the meeting to get them more engaged. 

You'll see an increase in productive energy arise from your meetings when you do.

#SGBC  #FinancialFitness #Interdependent Leadership #SalonBusinessCoach #SpaBusinessCoach #salon #spa #clinic #meetingguidelines #timemanagement #teamtraining #homeworkprior #productivityboost
. . . . .#salonbusinesscoach #spabusinesscoach #sa .
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If you are a single owner/operator... ...you sho If you are a single owner/operator...

...you should add your personal expenses in with your business expenses when you are creating your budget. 

This way you have a sound financial plan that accounts for what you need to produce to prosper.


Benefits of Including Personal Expenses in Your Business Budget
- Provides a more accurate picture of your financial situation
- Helps avoid overspending or underestimating expenses
- Enables you to set realistic goals and targets
- Helps ensure long-term financial stability and success
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#SGBC #FinancialFitness #Interdependent Leadership #SalonBusinessCoach #SpaBusinessCoach #salon #spa #clinic
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