Diploma of Salon Management flashcards
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34 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Break-even clients
- The number of clients needed per period for revenue to equal total costs. Calculated as fixed costs divided by the difference between average ticket and variable cost per client.
- Gross margin percentage
- Gross profit expressed as a share of revenue, where gross profit is revenue minus cost of services sold. Calculated as gross profit divided by revenue, multiplied by one hundred.
- Variance analysis
- A budget control method comparing actual results with budgeted figures. Variance percentage equals actual minus budget, divided by budget, times one hundred.
- Gift card liability
- Money received for gift cards or prepaid packages that has not yet been earned through service delivery. It is recorded as a liability, not revenue, until redeemed.
- Utilisation rate
- Booked service hours divided by available service hours, expressed as a percentage. It measures how much of the team's sellable time is actually generating revenue.
- Standard operating procedure
- A written instruction stating the task, the responsible role, the frequency, and the acceptable standard. It makes service delivery consistent regardless of which staff member performs it.
- Contingency planning
- Preparing documented responses to disruption, including a named deputy for each key role and plans for loss of premises, power failure, or supplier failure.
- Service mix review
- A periodic analysis of revenue and margin by service. Services contributing little revenue and below-average margin are candidates for removal or repricing.
- Structured interview
- A recruitment method using the same core questions and a scored rating scale for every candidate, which improves comparability and reduces unconscious bias in selection.
- Progressive discipline
- A documented sequence of escalating responses to misconduct or poor performance: verbal warning, written warning, final written warning, then termination, each recorded and witnessed.
- Behaviour-based feedback
- Feedback that describes the observed behaviour, its impact on others or the business, and the required change, rather than labelling the person's character.
- Staff turnover rate
- The proportion of employees leaving during a period. Calculated as leavers divided by average headcount, multiplied by one hundred, and tracked against a target.
- SMART goal
- A performance objective that is specific, measurable, achievable, relevant, and time-bound, with a review date recorded so progress can be assessed objectively.
- Service gap model
- A quality framework comparing client expectations with perceived delivery. Gaps arise from mismatched standards, failures in delivery, or poor communication with the client.
- Net promoter score
- A satisfaction measure from a post-service survey. The percentage of promoters minus the percentage of detractors gives a score from minus one hundred to plus one hundred.
- Client retention rate
- The proportion of existing clients retained over a period. Clients at period end minus new clients, divided by clients at period start, times one hundred.
- Consultation record
- A documented pre-service consultation capturing hair and skin history, prior chemical services, allergies, the client's desired outcome, and the agreed treatment plan.
- Retail attachment rate
- Retail units sold divided by services delivered. It measures how often a client leaves with a recommended product, with common targets around 0.5 to 1.0.
- Brand positioning statement
- A sentence defining the target client, the brand category, the key differentiator, and the reason to believe it. It anchors all marketing and promotional messaging.
- Marketing return on investment
- Revenue attributable to a campaign minus campaign cost, divided by campaign cost, times one hundred. It compares promotional effectiveness across different activities.
- Discount margin effect
- A percentage discount reduces gross profit by more than the same percentage. A twenty percent discount on a forty percent margin service removes half its gross profit.
- Hand hygiene
- Washing or sanitising hands before and after every client and after removing gloves. It is the single most effective measure against cross-infection in salon practice.
- Cleaning before disinfection
- Removing organic matter and product residue before applying disinfectant. Soil inactivates many disinfectants, so cleaning must always precede chemical disinfection of tools.
- Safety data sheet
- A document supplied with every hazardous product, detailing hazards, safe handling, first aid, and storage. It must be available on site and staff must know its location.
- Single-use items
- Tools such as files, buffers, and applicators that cannot be adequately disinfected and must be discarded after one client to prevent cross-contamination.
- Patch test
- A small application of oxidative colour product, normally forty-eight hours before the first full application, to check for allergic reaction. The result is recorded.
- Informed consent
- Agreement given voluntarily after the client is told the risks, alternatives, and likely outcome of a treatment. It is documented before chemical or invasive services.
- Professional indemnity insurance
- Cover protecting against claims arising from negligent treatment or professional advice. It is distinct from public liability, which covers injury on the premises.
- Par level
- The stock quantity that triggers reordering. Calculated as safety stock plus average daily usage multiplied by supplier lead time in days.
- FIFO rotation
- First in, first out stock rotation, where older stock is used before newer stock. It is essential for professional products carrying expiry dates and reduces waste.
- Stock turnover
- Cost of goods sold divided by average inventory value. A high turnover without stockouts indicates efficient purchasing and inventory control.
- Skill gap analysis
- A comparison of the competencies required by the current and planned service menu against the verified competencies held by the team, used to target training investment.
- CPD log
- A record of continuing professional development capturing date, activity, provider, hours, and the competency maintained, used as evidence of ongoing competence.
- Trend pilot
- A limited trial of a new service with a small client group, measuring demand and margin before committing to full rollout across the salon.