I have got two questions for you. The first one is “What’s your average bill” and the second one is “Why is it even important?”
Well, let's talk about that. But the first thing to clarify is that the term ‘Average Bill’ goes by many names.
Average Bill is sometimes called, ‘Average Ticket, Average Docket or Average Transaction Value’ and they are all the same thing, just with slightly different names.
But regardless of the name you give it, the ‘Average Bill’ is an important number to know and understand because the higher your ‘Average Bill’ is, means the less clients you have to see to generate the same amount in revenue.
Let’s dig in a little deeper, and start by understanding how to work out what your ‘Average Bill’ is.
So, to work out what your average bill is all you need is two numbers and once you know those numbers it’s a simple equation to work out what your ‘Average Bill’ is.
The first number you need is the amount of money, or sales, or revenue, [they all mean the same thing] that you generated.
And the second number you need is, the amount of clients that you had to do in order to generate that amount of revenue.
Then the equation is simply, ‘The amount of money generated, divided by the amount of clients you did to generate that amount of money’.
Stick with me here…
Let me say that again,
It’s ‘The amount of money generated, divided by the amount of clients you did to generate that amount of money’ and it includes everything from children's haircuts, blow-drys, mens haircuts, colours, treatments, retail everything…
So, let’s look at a real example; Say you generated $1,500 in total sales and did 23 clients. To work out the average bill its $1,500 divided by 23, equals an average bill of $65.
But, now let’s look at another example.
Say you generate the same amount $1,500 but this time you only did 18 clients.
To work out the average bill its $1,500 divided by 18 equals an average bill of $83.
So why is that better?
Well you produced $1,500 in revenue both times, but in the first example you needed 23 clients to do it and the second example you did it with 18 clients! Or 5 less clients to achieve the same result.
Thats a great example of how a higher ‘average bill’ means that you are ‘working smarter not harder’. In other words, you did less clients to generate the same amount of money!
The number that represents your average bill is an indicator of how good your consultations are!
It’s an indicator of how good your product knowledge is!
It’s an indicator of whether or not you recommend take home haircare!
It’s an indicator of the percentage of your clients that have colour services, treatments or other add on services!
And its an indicator of how good you are at building relationships and trust and inspiring your clients to want more!
Having a high ‘Average Bill’ is a reflection of how successful you are as a ‘well rounded hairdresser’.
So let me leave you with a question; “Do you know what your ‘Average Bill’ is? And more importantly, “Do you know how to make it better?”
If you want to work smarter and not harder I have an online course called Super Stylist it has helped many people all over the world become more successful in the hair and beauty industry and it can help you too.
We launch it 3 times a year and if you want to get on the wait list for the next launch, or are just curious about it and want to find out more visit growmysalonbusiness.com and register your interest to be notified when it’s next open for enrolment. I’m sure you’ll be glad you did.
And if you don’t already follow us, then don’t forget to follow me on Facebook and Instagram @growmysalonbusiness
Thanks for watching! Have a great week!
