DO YOU KNOW the potential that grooming services can bring to your top-line revenue? Your pet supplies business? Your profit? Do you know what you need to know to have profitable grooming services? Here are some key performance indicators to help you reach your fullest potential:
1 & 2. Per-Table Revenue
Every grooming station (table) should generate an average of $150,000 per year in top-line revenue. This is figured using smaller targeted goals such as average ticket price, the number of dogs per day groomed at each table, the number of days your business is open, and the number of weeks you are open each year. For example, if your business’s average grooming ticket price is $70, each grooming station generates seven appointments per day, you are open six days per week and approximately 50 weeks per year, then each of your tables has the potential to deliver about $147,000 annually! This could dramatically increase if you can elevate your average ticket price by better recommending extra services such as coat conditioners, dental services, shed control treatments and nail filing. Increase the average ticket by only $10 and the number jumps to almost $170,000!
Another good per-table KPI to set your sights on involves staffing. Think of your grooming stations as production units. They are always there, waiting to have someone work at them. But in many cases, grooming salons are mostly empty by mid-afternoon. The staff has left for the day. Yet, the tables are begging to be used. This is called Cold Tables. Every hour you are open and do not have a grooming professional at the table, you are potentially losing $60 to $100 per hour in revenue. Make every attempt to have your grooming tables staffed at least 80% to 85% of the time to maximize your business’s revenue potential.
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3. Gross Margin
By using a trained, entry-level groom tech, you can have a very successful business. Even if you don’t have a “haircut” business. Groom techs perform full-service baths, nail trimming and shedcontrol treatments. They are paid about half of what you might pay a professional groomer. If you have an equal number of groom techs as you do groomers and they generate a similar revenue, your gross profit should be much closer to 60% than if you had only groomers.
4. Attachment Rate
Grooming services drive foot traffic, loyalty, frequency and basket value. Because they cannot get their dogs groomed online, customers who come to you for grooming will be more likely to purchase their pet’s supplies from you instead of your dot-com competitors. Some stores report customers coming in four to six times more per year and spending more than the average retail-only customers. Imagine the impact that will have on your overall revenue.
By focusing on these four key performance indicators, you can increase revenue in not only your grooming department but also in retail.
