October 2015 – Performance and Marketing Updates

Here are the stats for this week.

Bayshore
This location has a Radio station coming to announce the grand opening event.  We have gotten 2 neighbors in the same plaza to do it with them to expand it to share the cost and increase the time to 4 hours.  That should give them some really good exposure.  This store is approaching 100 guests a week.  It stayed steady at a high of approximately $1,500 in revenue last week.

Monkey Junction
Revenue for this week was down at $1,400.  The guest count is at 50.

Surf City
Revenue for the week was $1,800 and the guest count is at 100.

We are doing radio and TV advertising for these salons.  It just started so we believe we will start to see the increase in the coming weeks.

 

Comments (4)

  1. LI.JIAQI.SALON.121 :

    Thank you for updating the stats of the three salon stores. I am glad to know that you are utilizing some ways to advertise. Comparing to past performance, I am a little worried about revenue and guest count of the Monkey Junction store and the Surf City store because they declined in some degree. I downloaded September P&L Sheet, but October P&L Sheet is exactly as same as Septemer P&L Sheet. I guess that you might upload the same document. Can I receive the October P&L Sheet at your earliest convenience please?

    Based on September P&L Sheet, the Monkey Junction store’s and Surf City store’s revenue decreased a little bit, but the Franchise Royal Fees was going up about $1,000 respectively. I remember that you had taken several means to decrease expenses, including requesting Fantastic Sams to lower the Franchise Royal Fees. However, I noticed that the Francise Fees in September was even much higher than previous months. For example, Franchise Fees in September was $1501.35 per store. In August, it was $593.82. In July, it was $1187.64. I cannot see this item in June P&L Sheet. But in May, it was $892.29. Can you explain why the Franchise Fees varied so much month by month?

    Jacky

  2. Sabrina Wall :

    Hi Jiaqi,

    I had to have a little research done to answer your questions. Here are the answers.

    October Financial statement is a duplicate, it is the September P&L. Oct hasn’t been released yet. We will remove that.

    Regarding the variation in Franchise Fee. Some months have 5 weeks instead of 4. Fees are paid weekly so some months will have 5 weeks worth of fees rather than 4. Sept had 5 Tuesdays, and I believe NC bills fees on Tuesdays. Dick did reduce his fees so they have changed from the standard amount.

    Accounting didn’t report the Franchise Fees properly in June so they got reported in July’s P&L, so the number is doubled in July (Accounting error). June should have been $593.82 and same for July. Instead you have $1187.64 in July (double). August has the same amount, $593.82. In Sept Dick only charged $300.27 for Franchise Fees, but it was for 5 weeks so the total was $1501.35

    For earlier P&Ls, the total fees paid in a month would depend on what week that store opened. Fees start after the store opens and typically after the second week, so in some months you would only see fees for a couple of weeks vs 4 weeks.

    Hope this helps.

    Sabrina

    • LI.JIAQI.SALON.121 :

      Hi Sabrina,

      I am sorry for replying this comment so late.

      Thank you for your research on the franchise fees. It helps me a lot. Can I assume that each store will pay around $300 per week for the franchise fees? If so, is it possible to lower it a little because it is a huge burden in expenditures? $300*3 stores*4 weeks=$3,600! Could you ask Dick to reduce some of the fees so that my stores would be able to reach the break-even soon? After they are break-even and making profits, he may raise the fees back to the standard level. That is my thought. Thank you.

      Best,
      Jacky

  3. Sabrina Wall :

    Total loss of investment for all 3 stores in Oct $16,111
    -Bayshore
    October payroll at 161% of revenue
    Loss of $7,870 for October
    Did grand opening did promo for $4.99 which is why payroll was so high.
    We have really been watching Bayshore’s payroll

    -Surf City
    October payroll at 58% of revenue – Goal between 40-60% after Grand Opening. Almost there!!!
    Loss of $2,603 for October

    -Carolina Beach
    October payroll at 73% of revenue
    Loss of $5,636 for October

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