Everytime I hear someone talk about going booth rent because they're sick of "losing" so much of their money in commission situations-- I laugh. It never fails: you can expect to spend 50-60% of your gross receipts in expenses as a renter. It's certainly possible to get that shaved down, but I think you should plan on not being able to get below 30% in expenses. It is the way of business. You can save a LOT of money in supply costs by buying your product in bulk-- buy a half gallon of monomer instead of 8 oz at a time! Buying in larger quantities can make a HUGE difference in profitability! I know for myself-- and probably for most of us-- I COULD spend much less on my business. But as long as glitter is tax deductible I'm gonna buy GLITTER! I have my "expenses" categorized between the things that are constant: my rent, my phone bill, my web hosting, etc. The things that are sliding costs-- like supplies; how much I spend depends on how busy I am (this is where it's really important to know your true cost of services.) And then I also divide my expenses between then things that are necessary to stay in business: rent, supplies, insurance, licenses, etc, vs the things that are deductible but optional: trade magazines, trade shows, continuing education (not required for licensure,) glitter (to some extent-- I'd be a hungry nail tech if I didn't do rockstars,) internet in the salon... let's face it, most of us spend plenty of money on things that we COULD work without. But ulitmately-- there's a reason that standard commission rates are 60/40 or 50/50-- that's what it costs to run a station. Most salon owners who do commission will tell you they're lucky to break even on those rates and most booth renters and salon owners will tell you that they're lucky if they get to keep 50% of their gross receipts. Another way to look at it: 60% in expenses means 40% in profit-- that's still in the black!
Maggie Franklin: Owner & Artist, The Art of Nailz, Visalia CA "Visionary rebel dreamer; obviously way ahead of my time." Maggie Rants [and Raves]@Nails Magazine Facebook --- On Sun, 3/20/11, Lauren Dodson <[email protected]> wrote: From: Lauren Dodson <[email protected]> Subject: NailTech:: after expenses To: [email protected] Date: Sunday, March 20, 2011, 4:26 PM Thanks for all of the answers and thoughts so far. I do love what I do and love being my own boss. But I would also love know how to make more money. Is there a formula I could follow ie: rent should be a certain % of what you earn, supplies etc. Maybe if I knew what the most I should spend a year I could keep that goal in check. i spent about $400 on Shellac and the lamp last year and brought in an extra $4000. I thought that was worth it. I have only bought some of the new colors of the Shellac, instead of getting all of them. Trying to edit myself. -- You received this message because you are subscribed to the Google Groups "NailTech" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/nailtech?hl=en. -- You received this message because you are subscribed to the Google Groups "NailTech" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/nailtech?hl=en.
