Chapter 12: Page 3 of 4 Table of Contents | Next
Chapter 12: Making “Cents” Of It All (cont.) Lets not forget that we have not even taken into consideration the profits generated on the Scentual Sun aftercare line, which can be substantial. For now, we’ll just consider that a bonus. Now lets look at the “real world” numbers and a simple business plan. Monthly Operating Expenses: | | Rent on your salon space @ $100.00 per wk. (4.33 wks. per mo.) | $433.00 | Yearly insurance premium of $525.00 divided by 12 mos. | 43.75 | Phone service | 45.00 | Printing expense (monthly average) | 100.00 | Advertising expense (discretionary not necessary to be successful) | 0.00 | Electricity (Included in space rental) | 0.00 | Product cost @ $4.00 per full body tan (25 per wk. 4.33 wks. per mo.) | 433.00 | Total Monthly Expense | $1,054.75 |
Based on these monthly expenses and a full body rate of $40.00 you will have to tan 26 people for the month to break even. Everything over that figure is pure profit and again does not take into consideration sales from aftercare products. (Product cost is based on tanning approximately 108 people for the month. Tanning the first 26 covers your product cost for the entire 108 clients based on these figures) Table of Contents | Next
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