Find the station utilization that makes a full service salon work.
Stations, services per day and a colour-weighted ticket, with stylists on base plus commission.
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A full service salon is a capacity business on the employee model. Capacity is stations times services per day times open days, utilization is the share of that capacity booked, and the ticket of $65 to $95 blends a $55 cut with $100 to $180 colour and the facials, waxing and lash services sold alongside. Colour and treatment appointments run long, so a station turns about four and a half times a day rather than the six a cuts-led shop manages. Stylists are employees on base plus commission, so their pay sits in fixed costs; cost of goods is colour, developer and backbar product only at 10 to 14 percent, and gross margin lands near 88 percent.
Styling stations, basins with plumbing, a colour bar, dryers, a treatment room and retail shelving commonly total $80,000 to $200,000 for a 1,600 square foot unit, financed over seven years. Eight stations at four and a half services a day over twenty six open days is a ceiling of 936 services a month, and a settled salon runs 60 to 70 percent of that. One salon does roughly $400,000 to $750,000 a year; a figure well above that is describing a second location. The model holds debt service coverage at 1.25 or better.
The service mix is the lever. A salon that sells colour and treatments to most of its clients earns a ticket half again as high as a cuts-led one on the same stations, and that difference is the whole margin. The subtler driver is staffing on the employee model: a new stylist is a fixed monthly cost that arrives before her column fills, so hiring to the station count rather than to the bookings is the usual way a salon with sound unit economics still runs short of cash. Retail product attached to a share of visits is the standard margin add-on and is where a settled salon finds its last few points.
Everything you need to know about beauty salon financial modeling.
The numbers that matter most for a beauty salon business, calculate any of them free.
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