When we started our Salons I had no idea what on earth a K.P.I. was or Benchmarks, you might as well have said "Beam me up Scottie".

We need to start knowing and using the benchmarks to follow and track how much we are spending on our salon through expenses such as Wages, Rent or how many re-bookings should we be striving for.

The Australian Tax Office have issued their own Benchmarks for individual professions and below is some information from their website that I hope you will find both interesting extremely useful tool to run your salon into not making a loss and making a profit.

This report has been taken from the official Australian Tax office view of their overview of what the Key Performance Indicators should be in certain areas of a hair salons business.

These figures below are for the year ending 2009-2010

We suggest you go to their website for further information as this is always updated regularly.

http://www.ato.gov.au

These benchmarks are purely for hair salons who are dealing with cutting, color, perming styling hair together with basic beauty which includes nails and the sale of products.

Men’s hair salons/barbers or beauty are not included in this overview.

The benchmarks that you can download below will show a few different financial ratios of business income to business expenses incurred, this will help you compare where you should be ‘sitting’ for different ratios.

1. The most important key benchmark for you to concern yourself is the cost of sales to turnover.
2. You must also concern yourself with the Wages over turnover
3. You must also concern yourself with the Rent over turnover.

benchmark table.zip









The benchmarks are published as a guide only and each financial year will have its highs and lows.

The two we have highlighted should be a main priority for you to ‘Gage’ where your hair salon is sitting in these ratios.
If your sales figures are not within these ranges again go to the Ato website for further information.