09-26-2014, 03:10 PM | #31 (permalink) |
Team TanTalk Join Date: Nov 23 2004 Location: ITA Member & Berman Supporter!
Posts: 3,136
Rep Power: 25 | Re: What is your PSA This is actually untrue, if you mean "Per SALE Average", as you defined it. If I sell $500 to 10 customers out of 100 seen - my Per SALE Average is $50 and my income is $500. If I sold $500 to 5 customers out of 100 seen - my Per SALE Average would go up to $100 ($500 in sales divided by 5 customers) - but my revenue would be the same. In fact - I could make just one SALE - of $200 - to one customer out of 100 I saw that day. My per SALE average would be $200, the highest yet! But my daily revenue would be the LOWEST - as well as my Per Tan/Session Average. Last edited by sunsally; 09-26-2014 at 05:36 PM. |
09-26-2014, 03:22 PM | #32 (permalink) | |
Team TanTalk Join Date: Nov 23 2004 Location: ITA Member & Berman Supporter!
Posts: 3,136
Rep Power: 25 | Re: What is your PSA Quote:
Slow season you have fewer "opportunities" to sell - fewer "door swings" as less people come in. That MAY mean your per tan average goes DOWN. If you are a heavy membership salon where most customers are on EFT, this could certainly be true. Busy season gets more "single use" buyers as well as short terms options (e.g. visits or a single month). However, maybe you have a range of equipment and your sales people are well trained to upgrade customers as well as recommend new products or other service offerings. You CAN do things to try to keep your averages up! However - again - depends on what you measure. For example - most looking at those calculations exclude EFT monies. In a heavy EFT environment, this can make a difference! So can look at your revenue as JUST "over the counter" (sales at the register that time period) -- OR -- you can look at ALL salon revenue (this would usually be done monthly or yearly only) -- and include EFT billings. In the slow season, your EFT monies may stay fairly high - but with no tanners actually coming to tan! So your Revenue/Tan in those cases could be just as high - or higher - than busy season! It is interesting to compare to others. But it is MOST instructive when comparing to your OWN numbers - to see if you are getting better, getting worse, or staying the same! Last edited by sunsally; 09-26-2014 at 05:37 PM. | |
09-26-2014, 03:36 PM | #33 (permalink) | |
Team TanTalk Join Date: Nov 23 2004 Location: ITA Member & Berman Supporter!
Posts: 3,136
Rep Power: 25 | Re: What is your PSA Quote:
Type of equipment/pricing and your tanner count WILL impact your numbers! But not necessarily always the same way! BUT - in all cases - your "strategy" has to fit your overall costs! For example: Maybe I have a salon with multiple levels up to full HP. Maybe I can command high prices in this location and the average revenue/tan in my salon is $18. If I tan 1000 customers in a month, I gross $18,000. - $18/per tanner/session Average Another salon might have mostly lower level beds. They see 1000 customers/week! They average $5/tan. 4000 customers in a month - $20,000 revenue. $5/tanner/session average Which is "better"? Depends on: Overall costs - rent, labor, electrical. Maybe $20,000 is better than $18,000 -- because it is more money. Maybe $18,000 is better than $20,000 -- if less labor or electricity to service 1000 tans vs. 4000 Maybe $20,000 is better - because rent is a lot cheaper than the other, "high end" location. Maybe $18,000 is better -- because there is more "potential inventory" at the low volume store - they could tan more people if they could get them through the door! Maybe $20,000 is better - because they could get higher end equipment into this very busy location and maybe get people to spend just a little more - and with faster beds, even see MORE people in a day if they are out there! Bottom line - there isn't "one answer" that tells you what is "best". There IS one fit, that makes sense, for your set up. And a handful of proven ways to take an EXISTING location - and increase both revenue AND profitability! | |
09-26-2014, 04:43 PM | #34 (permalink) | |
Join Date: May 6 2009
Posts: 55
Rep Power: 0 | Re: What is your PSA Quote:
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09-26-2014, 09:44 PM | #36 (permalink) | |
Join Date: Nov 21 2000 Location: Midwest
Posts: 198
Rep Power: 24 | Re: What is your PSA Quote:
By the way, "excepting" answers is different than accepting answers. | |
09-27-2014, 08:26 AM | #37 (permalink) |
Registered User Join Date: Nov 19 2002 Location: worldwide Age: 53
Posts: 145
Rep Power: 22 | Re: What is your PSA There's no pretending - Ken actually owns salons, Steve does not. Sunsally is a salon owner, Steve is not. Unless you are a complete novice, I wouldn't begin to read Steve's posts. His advice is often far off the mark. However, if you are my competition, please read and re-read every single Steve post. |
09-29-2014, 08:37 AM | #39 (permalink) | |
Team TanTalk Join Date: Aug 27 2002 Location: East Coast Age: 56
Posts: 2,888
Rep Power: 22 | Re: What is your PSA Quote:
In your example: Employee A works the morning shift from 9-3 and sees a total of 30 people and sells $300. Employee B works the afternoon shift from 3-9 and sees a total of 60 people and sells $420. You would reward employee B since their sales per hour are $70. WRONG>>>>>DEAD WRONG> You would want to reward Employee A since they averaged $10 a person per visit while Employee B only averaged $7 a person. YOU SHOULD NEVER RUN A CONTEST BASED ON AMOUNT OF SALES PER HOUR. YOUR EMPLOEE WHO IS WORKING THE BUSIEST TIME OF DAY WOULD AUTOMATICALLY WIN EVEN THOUGH THEY MAY HAVE THE WOREST PER PERSON AVERAGE. Last edited by Robert K; 09-29-2014 at 08:40 AM. | |
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