Net profit margin is what remains after all costs – expressed as a percentage of revenue. It answers whether the salon truly earns after wages, rent, stock, and overheads.
Busy UK salons can still have thin or negative margins. The book stories about owners discovering losses only after proper tracking are common. Margin is the adult number behind vanity turnover.
Yes. Low prices, waste, and uncontrolled draws destroy margin while the chairs stay full.
Only with margin and cash flow beside it. Turnover alone is a vanity score.
Monthly is a practical rhythm for most salons.
Pricing discipline, waste control, and stopping pocket-money draws.
Finances academy and Financial Compass chapter.
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Confusion that hides true margin.
Cash flow is the money moving in and out of your salon each week – takings, rent, wages, stock, and card settlements. A salon can look profitable on paper and still run out of cash if bills fall due before payments arrive.
Cost of goods sold (COGS) is the direct product cost tied to delivering services – colour, treatments, disposables as opposed to rent or marketing.
Break-even is the revenue (or number of tickets) you need before the salon starts making profit – covering fixed costs like rent and variable costs per service.
Average ticket is total service and retail revenue divided by the number of visits. Raising it often beats adding more hours or chasing endless new clients.
