Business practice, retail, promotion and professional development
Business practice, retail, promotion and professional development
This domain tests the commercial and professional skills that sustain a salon: costing, pricing, retail, ethical marketing, CPD and insurance.
Core rules
- Know your costs: product cost per treatment, room overheads, insurance, tax and time. Price for profit, not just to match competitors.
- Break-even equals fixed costs divided by price per treatment minus variable cost per treatment. Review regularly.
- Retail works best when linked to the treatment and the client's stated concern: recommend, demonstrate, explain benefits and check suitability.
- Marketing must be truthful and consent-based: ASA rules prohibit misleading claims, and GDPR restricts unsolicited electronic marketing.
- Obtain written consent for before-and-after images; store them securely and explain how they will be used.
- Keep CPD records, first-aid and insurance up to date; work within scope and refer when needed.
- Use client feedback and complaints to improve service; measure rebooking and retention.
Worked example
A treatment costs £12 in product and variable supplies, sells for £45, and the salon has £3,000 fixed costs per month. Contribution is £33, so break-even is about 91 treatments per month. A 20% discount drops contribution to £24, requiring 125 treatments. The reasoning shows why discounting can raise workload without raising profit.
Traps
Discounting without checking margin; buying retail stock that does not suit your clients; making cures acne claims; posting client photos without consent; neglecting CPD records.