Salon Operating Costs Flashcards
The most stable salon service is ____ an dis used by most salons as a standard to set prices of other services
Hair Cutting
The price on a unit of merchandise where the unit represents several items is:
the list cost
Stylists should sell at least ___% their gross service sales in retail.
15%
Mathematically, a ration of two figures, or a fraction created by dividing once figure by another figure is called a:
percentage
When planning your salon’s budget, your costs should be a certain percentage figure, based on the salon’s…
gross income
The average rent paid by a salon should never exceed ____% of the gross intake
15%
A new salon has projected a budget for their first year of business. The owner plans to gross $150,000 in sales and plans to spend 5% of those sales on advertising expenses. How much money should he set aside?
$7,500
If your total expenses are more than you total gross sales, then your business is opening at a….
Loss
The actual price on a unit of merchandise sold one unit at a time is…
Each Price
The price applied to items sold at a dealer’s show at list price, when a certain amount of another item is sold at a discount or free is:
The Show Price
Wages are a salon’s largest expense and are usually ___% of gross intake
40-50%
The price set by manufacturers to promote sales on certain items during a given time period is:
the Deal price
Profit before federal, state, or city taxes are paid is the :
Gross Profit
For the average salon, total expenses are about ___% of the total gross income
85%
A salon has total gross sales of $165,000 in gross profit, what are the total expenses?
$120,000
