MJ

That time of year is upon us,
UnderstandING Your profit and loss statement is very important.
You can also have your accountant do a monthly comparision to the last yrs numbers (it is recommended).

Spend time reviewing it.....don't just look at the bottom line. Accountants make mistakes too.

Look for ways to reduce your Bottom line in maintence cost without reducing the quality of service.
I AM NOT RECOMMENDING you reduce the number of times you change bulbs.

I am suggesting you try maintence/tear down on the beds bi-weekly instead of monthly.
this will help the bed run cooler and the bulbs will last longer as well as the acrylics.
Another possible savings in the operating cost.

Advertising:
Try Entertainment Books, or any other form of advertising where it doesn't cost you a dime.

I personally do get mine done quarterly, I was thinking of going monthly next year as business increases.

By doing these and more I lowered my operating cost 6 % this year..Without lower the quality service and great tans we provide to the customers!
Going to try to get it Just a little lower this year.

ANY SUGGESTIONS????

Often times it helps tremendiously if you build a relationship with your accountant.
They will be much more helpful and explian more of your statemnet to you.
Oh, I realize this is common knowledge just thought it should be said.
mJ

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"A small salon, but not for long"[ This Message was edited by: MJ on 2002-02-27 13:26 ]

tangirl

MJ - Thanks for bringing this up. This is the perfect time of the year to be looking at this. Just before busy season hits, see what you can do to lower your costs.

Chippp

Check on phone costs, shop around and insurance costs, these can both provide savings.
Buy your own steam cleaner for carpets its cheaper then paying to have it done. Do your own painting ,what ever you can do yourself saves you labour costs.
Take advantage of the web, make your own web site for you salon clients love to see your on the web.


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TanTalk Tanning Booth MODERATOR


Tanning Booths, for people that want only the very best.
Fast, Comfortable, Dark Tanning and Hygienic.[ This Message was edited by: Chippp on 2002-02-27 14:18 ]

tangirl

Find out how much your lighting is costing you and find a way to change that. We cut our light bill by $100 a month by changing our lighting.

Do all of your own printing. Such as release forms, marketing, etc.

Chippp

We do all our own printing and designing as well. yes your lighting can be a lot cheaper with compact florescent lighting.
They dont look as pretty but save tons.
They last for every to.
We don't leave the computer on all night any more.
What ever you can save turns into profit.
The biggerst saving is higher prices, your costs are lower and your profit stayes the same or is higher!
Less wear and tear, less power used, fewer lamp changes. Same or higher profits.
Price increases are scary but pay off.

Rich

I would suggest that you all start doing your own P&L's. It really is not hard with a little work and time. Face it, in the off season we all have lots of time to work on this type of thing and you can save all of the expense of doing your P&L's plus you get them monthly. I do my own, have for years. I get my monthly P&L and balance sheet on the 1st of each month for the month before if I am so inclined to finish it that fast. I give my year end figures to my accountant and he figures my tax return for about $250 and that includes personal and business return.

Chippp

I do my own corporate income tax. its easy once you get into it.

tangirl

Rich - I do my own. I just provide all the essentials to the accountant for taxes.