I need to save!

[imhere]

can you guys offer suggestions on how to cut expenses? i read some previous posts so i have some info already.

what is best way to cut back on need to run ac unit without making salon a sauna which leads to equipment problems and sweaty clients?

what kinds of additional negotiation can be made with distys now to get good deals on lamps and products and/or 'defer' payments?

what kinds of additional negotiations can be made with landlords to 'defer' rent payments, if at all possible.

can you reduce payroll expenses without reducing coverage?

i'm sure many will tell me none of this is realistic, but it can't hurt to ask.

[Glowtanning530]

NOw is the time to buy lamps and store them. most will not defer payments its their slow time too.


The only advice i have is to save in season to be ready for jason

[gottatanfl]

Cut Payroll and run the store yourself

If you start deferring payments you will have a hard time catching up come busy season when you need to start saving for the next slow season.

[aeltiger]

Well, as far as payroll goes....all of my girls get minimum wage plus commission on products they sell. When they aren't selling in slow season, they aren't making the commission so that kindof automatically lowers those costs. Also, I have the girls turn the a/c down to 74 when they come in and leave it there until afternoon when it gets busier. Its always much warmer up front so I put in a couple of fans for them. But since we aren't as busy there is no need to run the air on 65-68 degrees all day long. We leave it on 74 until later in the afternoon and then turn it down to 72 or 70 at the lowest...unless its slammed busy. Clients haven't noticed it and its cut back a little bit on the power bill. I'm sure its different depending on where you live, but here in the SE its been about 85 degrees everyday (which is cooler than the 100 plus over the summer)!

Also, I will need to relamp my beds around the beginning of season and I just found out that if you buy Cosmedico or Wolff lamps from ITBG there are no shipping fees so I am going to go ahead and purchase them and put them up. Any deals that come along I am trying to take advantage of and stock up for season when there won't be as many deals. I've got a CC with 0percent interest for the next few months so this really helps me with this! Might be something to look into if you can!

Hope this helps some!

[aeltiger]

I have two stores so I can't completely cut payroll, but I am trying to work most hours at one salon by myself and we did cut back our store hours by an hour each day so that helps a little bit.

[SBT 501]

I had an employee quit once school started and I decided I wasn't going to replace her. I'm now working 50-56 hours but this saves about $500 a month. Haven't worked this much in 7 years might kill me.

I negotiated with my landlord to reduce lease payments Sept.-Dec. by 50%. In March-June rent goes up 50%. all other months are standard payments. $500 savings in 4 slowest months

I have one bank note and I have negotiated to have interest only payments Sept.-Dec. saves $800

My a/c has return ducts outside the building (as well as inside). I close these off in the Spring and Summer. In the Fall and early Spring I open the outside ducts and run the fan which pulls cool outside air. big savings.

[Island Cove]

Ididn't even bother to negotiate with one of my salons landlords, i just pre paid half of sept and octobers rent in the busy season. They like it anyways as that is when they have to pay out the taxes in full that we pay over the course of 12 months to them.

[InternationalTan]

set your AC on a schedule so it turns off at night when you arent there. Have it turn back on to 70 or whatever you like 2 hours prior to opening so its nice and cool in salon without running all night. This is what I have done, saved me some money. I turn unnecessary lights off when no one is here (accent lights etc) and I work more hours.

[baskinthesuntanning]

-less payroll
-look into better merchant service costs (use debit processing also, not just credit)
-less ac if possible
-get rid of things you dont have to have
ex: internet (try picking it wireless)
cable tv
-figure out what advertising isn't working

[Din]

Originally Posted by InternationalTan

set your AC on a schedule so it turns off at night when you arent there. Have it turn back on to 70 or whatever you like 2 hours prior to opening so its nice and cool in salon without running all night. This is what I have done, saved me some money. I turn unnecessary lights off when no one is here (accent lights etc) and I work more hours.

2hours before? That's a waste.

I turn a/c on when the first customer comes in. It cools off in less than 5min.

A/C goes off when there are no customers

A/C is off all night.

A/C will cool the entire salon and it will start to get cold if nobody is tanning for like 20min or so. So it goes off and the salon stays cool.

In the winter time, the a/c has economizer to draw in cold air from outside and saves on power.

[Island Cove]

WEll in Canada, it is cheaper to have part time staff, than it is to have full time staff. My #3 salon, fully staffed, pays for itself 100% with part time staff doing the shifts. It did 30k less in a year than salon #2 that has a harder time paying for itself when the staff were full timers. So keep that in mind.

[Din]

Originally Posted by Island Cove

WEll in Canada, it is cheaper to have part time staff, than it is to have full time staff. My #3 salon, fully staffed, pays for itself 100% with part time staff doing the shifts. It did 30k less in a year than salon #2 that has a harder time paying for itself when the staff were full timers. So keep that in mind.

How is that? If they get paid the same $$$/hr and all the shifts are covered, does it make a diff if it's 2 f/t covering 65hours a week rather than 4-5 p/t employees covering the same hours at the same pay?

[Rob]

Because the employee that worked 40 hours will have federal and prov. taxes withheld. You have 3 employees that work 18 hours a week will not have made enough to have any fed or prov taxes withheld.

[Din]

i see....when you mean p/t ...you really mean p/t with very few hours that it's not even worth it for them to have a job.