1. Salon Operating Expenses Where does your money go?

2. Revenue Hair Cut (styles) Services Nails Tanning Beds Retail Sales (Product) Colors Permanent Waves Hair Extensions

3. Expenses Salaries Rent Supplies Advertising Depreciation Laundry Cleaning Utilities Repairs Insurance Telephone Miscellaneous

4. Expenses: percent of gross Salaries53.5% Rent10% Supplies 5% Advertising 3% Depreciation 3% Laundry 1% Cleaning 1% Utilities 1% Repairs 1.5% Insurance 0.75% Telephone 0.75% Miscellaneous 1.5%

5. Review: percent of a number What is 53% of $163,000? Change the percent to a decimal 53% = 0.53 Multiply 0.53 x $163,000 = $86,390

6. Wages 45-55% Wages of people in your Salon Example: Gross income in the Salon is $479,000. How much should you budget for wages? 45% of $479,000.45 x $479,000 = $215,550 for salaries