First, what is the SalonScale number?
It's the number you get at the end of your session in the app. It's is the total cost of all color, extensions, and other backbar products used to achieve the service for your clients. This is often referred to as "Parts" or Cost of Goods Sold (COGS).
Questions we will answer:
What is Parts + Labor Pricing?
How does this look on a bill?
What to do with your Color Allowance
What is Parts + Labor Pricing?
This might be one of the pricing models you've heard a bit more lately. So what's the buzz about it? Why should you separate your parts from labor? Think about the work you get done by plumbers, carpenters, and mechanics. You’re paying for the time it takes for them to complete the work, their experience level, and the materials or parts used in the service.
It is a successful, transparent, and profitable financial model.
With SalonScale, you're able to charge this way because you'll know the cost of goods in real-time. It's fair for the client - as they are never over-charged, and fair to the salon - as you will not be eating the cost of undercharging the client for the products used.
What are Parts and What is Labor
Parts are the total cost of the product used to complete the service. This is also known as your cost of goods sold (COGS). Your "Parts" can include hair color, treatments extensions, and other supplies.
i.e. Color used is $46.47
Labor accounts for the employee's time and expertise it took to complete the service. Labor can be shown in 2 ways:
Priced hourly i.e. 4 hours x $50/hour = $200
As a set service cost i.e. Full highlights $200
Labor can vary based on the time taken to complete the service, the experience level of the stylists, and the technical level of the service too.
When you add Parts and Labor, you get the total cost to the client.
Click here if you're interested in marking up your backbar products.
What does Parts + Labor look like on a bill?
The first image you see (1) shows what the total product cost will look like in the SalonScale app. This is the number you will add to your client's bill as your product charge.
On the sample receipt (2), you will see a breakdown of how this will look to your client after payment.
Here you can see all of the products broken down by service, retail, and backbar including the total at the end of the service. This helps to create the most transparent experience for your client.
Note: It is important to set up SalonScale as
a retail item in your POS system. If you set it up as a service you will end up paying commissions on SalonScale costs.
What should i do with my color allowance?
This is a common question that we get. And you have 2 options.
1. Add it on top! (easiest option, we recommend this one)
Simply include the complete product cost on the final bill. This approach eliminates the need to consider previous product allocations. This choice is both straightforward and widely favored.
Refer to the image above for how this will work for your customer.
2. Deduct your current Allowance from the Total Product Cost
This requires some math on your end. You can subtract your current allowance from the final product cost in SalonScale before you add the remaining cost to the final bill.
Examples: Deduct your fixed Color allowance
1. Get the total color cost from SalonScale
2. Deduct your fixed budget allowance
2 bowls of color $10/ a bowl =$20
$56.47 - $20 = $36.47 is the color cost you need to added to the final bill.
3. Add Color to the final bill
Examples: Deduct your % Color allowance
1. Get the total color cost from SalonScale
2. Deduct your fixed budget allowance
2 bowls of color $10/ a bowl =$20
$56.47 - $20 = $36.47 is the color cost you need to added to the final bill.
3. Add Color to the final bill