The crucial numbers most salon owners don’t know

knowing your numbersWSM’s Director of Online and Chief Number Cruncher, George Slater lays out the hard facts…

“What’s your average client worth to you in a year?”

It’s one of a series of questions we ask salon owners almost every day when they call our office to seek help with their marketing. And almost to a man (or woman!) very, very few have the slightest idea. Barely even given it a thought.

But knowing the answer to this and other ‘back-end’ questions are absolutely critical. You can’t effectively market a salon and get real, hard data on the results of that marketing, without knowing ‘the number’. Literally, these numbers will make or break you.

OK so what are these numbers?

What is my average client worth?

Here is an example.

Let’s say your average hair client will spend $125 (in Australia, less in the USA and UK) on a colour and cut.

Your average client comes back once every 6 week. That is 8 times per year.

Therefore your average client is worth $125 x 8 = $1,000 for service.

It seems such a simple calculation, yet 90% of the salon owners joining our My Social Salon coaching system initially have little concept of the ‘Lifetime Value’ of a client.

Here’s another crucial question;

How many active clients should I have and how many do I really have?

Let’s make some assumptions:

Total number of full time stylists = 5

Total number of hours worked per week = 190

Time to complete a colour & cut = (say) 1.5 hours

So, 190 hours divided by 1.5 = 126 (clients)

To give you a ‘fudge factor’ to allow for breaks, no-shows and other unforseen circumstances, let’s discount it by 15%, so therefore you would need…107 clients to fill those 190 hours.

At 107 clients per week, and 6 weeks between visits, that means you need a total of 642 active, regular clients!

(If you look at your system and that is not the case then you have an issue.)

But if those figures are right, that should give you a weekly income of $13,375 in services alone. Add retail sales at say three items a day per staff member @ approx $25 a time, cranks up the total revenue by $1,875. So total weekly revenue of $15,250.

Now let’s cross check that against staff pay benchmarks.

Best industry practise says staff should be bringing in a minimum of four times what you’re paying them, including retail sales.

If you’re paying staff $20 an hour (including yourself, for the sake of the exercise) your weekly payroll will be approximately $3,800 (not including superannuation and holidays) so $3,800 times 4 = $15,200.

In other words, if you’re achieving those figures, you’re on the money. Obviously, this is a ‘global’ example, your numbers will certainly be totally different – but you need to know those numbers, precisely.

Fill those empty appointment slots in MINUTES

Access the NEW Lite course, where you’ll learn:

– How to fill empty appointment slots
– How to stop no-shows dead in their tracks
– How to get money from your clients right now
– Exactly how to bring back your “lost” clients
– What you need to do to have new clients finding you online


Learn exactly what you need to do to turn your salon into a thriving success!