Price Point Spreadsheet.xlsx

	A	B	H	K
1	Salon Name
2	The Price Point spreadsheet is used to help you set your prices based upon covering expenses and making
3	additional profit. This formula can be used when opening a business. It should be used thereafter on a monthly
4	basis to evaluate where your price point is compared to your current average ticket to help you bridge the gap!
5	Step 1) ENTER YOUR INFORMATION:
6
7		TOTAL EXPENSES MONTHLY
8	(Enter your monthly variable and fixed expenses including loan payments and owners pay. It is
9	best to use a minimum of six months worth of expenses to determine a realistic average)
10
11		MONTHLY PROFIT GOAL
12	(Enter the amount of profit you WANT to make each month. This is the amount the BUSINESS will make after you
13	take a paycheck as an owner/technician. If you're not paying yourself add that amount plus profit for the
14	business. It is a good practice to set a profit goal of an additonal 5%-20%)
15
16		TOTAL PROJECTED GROSS SALES	$0.00
17
18		# OF CLIENT VISITS MONTHLY	0
19	(Enter a six month average of the total client visits each month on this line. Keep in mind this is not the # of
20	services. This is the number of customers. If a client gets 2 services in one visit it still only counts as one visit)
21	Step 2) DETERMINE YOUR PRICE POINT:
22				Avg. Ticket
23		PRICE POINT GOAL	#DIV/0!
24
25	Step 3) WHAT THE INFORMATION MEANS TO YOU & WHAT YOU CAN DO:
26	This price point goal helps you to understand whether your current prices are set to generate profit. It will also
27	help you to bridge the gaps bewtween where you should be and what your clients are spending on average at
28	this time. If your current average ticket as a business is below the above price point then you have no choice but
29	to take action. If not, you will be choosing to work hard and not make money! If you are in this situation or you
30	you are looking to increase profitability, here are actions you can take:
31	1. Raise your prices. (This will help bridge the gap immediately)
32	2. Increase # of Add On services. ( Focus on your consultation & implement marketing promotions)
33	3. Lower expenses where applicable. (Hold off on aggressive/expensive marketing/education until you hit the goal)
34	4. Increase Client Traffic. (Focus on rebooking, retail sales and referral programs)
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