Focusing on profit margin is crucial in order to run a profitable salon, so that you can pay your suppliers and employees.
However, this is not something taught in most beauty colleges. So, what is gross profit? Simply put, gross profit (GP) is the amount of money you clear after all deductions have been considered (i.e. pure profit).
What often happens is that we focus on a supplier’s gross profit calculations, and we do not keep in mind what our true costs are.
To find out more, read Diana van Sittert’s article in the June 2022 issue of Professional Beauty. To read the article go to pages 14 and 15. Click here