This budget illustrates your salon/spa's profitability. Notice that the budget is divided into two main categories - cost of sales and fixed exspenses.

     SALES

      Service Sales          

      Retail Sales 

      TOTAL SALES                                                  (should add up to) 100%

      VARIABLE COSTS (COST OF GOODS SOLD)

      Service Payroll        

      Payroll Taxes           
      Backbar        

      Purchases for Resale      
      TOTAL VARIABLE COSTS                                    (target) 50.00% or lower

      Gross Profit Margin                                                 50.00%

      FIXED EXPENSES (can include others not listed)      

      Administrative Payroll and Taxes

      Advertising   

      Bank Charges         

      Benefits

      Education     

      Interest          

      Maintenance & Repair       

      Miscellaneous         

      Rent  

      Telephone                

      Utilities       
      TOTAL FIXED EXPENSES                                  (should not exceed) 35.00%

            NET PROFIT MARGIN                                            (bottom line goal)     15.00%