David Miller
“The best thing about the MONEY course for me was the spreadsheets that helped me to understand how much my business was costing per minute.
I'd previously seen a couple of different ways of working out how your salon services should be priced. Then I got your pricing calculator, and thought okay, let's look at our costs, let's decide what profit we want, let's work out what our costs are per minute, and then apply it to our service menu across both salons. And the amount of red that came up!
I shouted at my wife who was in the kitchen, and I was like, holy shit! And I showed her that every one of those services shown in red is not profitable. And it was like two-thirds red and one-third black.
We immediately then knew, we've got to rewrite our service menu!
That then allowed me the ability to create our menu and go to market with what I knew was a profitable menu and know it was the right one for that location.
So, what we then did was allocate the amount of time that it takes to do each service, and we've applied the cost of the time to the service and what our breakeven is. We've then added our profit and that's our price.
So instead of looking at what other people were doing and comparing us to 3 or 4 local salons it gave me the confidence to know that this is the right menu. These are the right services. This is the right price.
Since I’ve done that, I haven't looked at any competitor around us. We just went, these are our services, these are our prices and this is our profit.
That spreadsheet was an eye-opener for me.
Another important point we got from the money course was understanding the industry benchmarking percentages in the P&L and what needed to happen in order to really develop. So we have now increased our profit based on understanding those figures. And we have adapted our wage structure based on understanding those metrics as well.
Was the course value for money? 100%