Guide for the Salon Today 200 Application

July 01, 2015

Each year, Salon Today holds a competition to find the top 200 salons in the country. With over 85,000 salons in the United States, that’s quite an elite list to be a part of! The application takes a look at how your business management practices contribute to your salon’s success, using some basic statistics and your essay responses.

Our Salon Iris users truly represent some of the finest salons and spas in the country, so we want to encourage you to apply. If your application is selected, your salon will be featured in the Top 200 issue of Salon Today – giving you the ultimate bragging rights!

To enter, your salon must have opened on or before January 1, 2013, and must have had an annual total revenue of at least $250,000 each year since 2013.


Application Guide

To help you fill out the application, we’ve put together this guide for how Salon Iris can help find some of the answers you need. And remember, send us your application confirmation at marketing@daysmart.com after you apply!

Part 1: Main Application

Question 3: Gross Revenue

The application requests your 2013 and 2014 Gross Revenue numbers. To get these values using Salon Iris, run the main Totals Report by going to the Reports menu and selecting the Sales Total and Sales Tax report from the main list. Make sure to run it twice, once for January 1, 2013-December 31, 2013, and once for 2014. If you have multiple computers in your salon, be sure that you have “All Computers” selected at the bottom of the report options.
gross-revenue

Question 4: Sales By Category

Salon Iris can help with this one by running the Service Sales by Category and Product Sales reports, but it also takes a bit of calculation afterward. First, go to the Reports drop down menu, go to the Search for Reports sub menu, choose Run by ID Number, and enter 83. We recommend running over the past year. Then run the Product Sales Statistics report available on the main Reports drop down menu to quickly get the Grand Total for your retail sales during the same date range used from the sales report. Plug into a spreadsheet the grand total from the Product Sales Statistics report and the category subtotals for the Service Sales report, and calculate the percentage of total sales is accounted for by each requested category.

Question 6: Number of Employees

On the Employees screen, just above the list of employees you’ll see a total number of employees that are in the software. By default this list shows only active employees, which is what you would want to list.

Question 7: Closed Tickets

Go to the Tickets screen, and change the search option on the left-hand side to show only Closed tickets. Then, change the date range to your previous fiscal year (or Jan 1-Dec 31, 2014). The total number of closed sales transactions (tickets) is listed just above the list of tickets.
total-tickets

Question 18: Expenses

If you use the General Ledger feature in Salon Iris, you can run the All Payments Grouped by Category report. Go to the Reports drop down menu, go to the Search for Reports sub menu, choose Run by ID Number, and enter 81. You can then use the subtotals for each category to determine the percentage of total expenses made up by each category.

Question 20: Retail Lines

Run the Products Sold Grouped by Make report to quickly see which retail lines bring in the most revenue. While there is not a product count by make on this list, you can view the number of sales on this report, but you may need to plug it into a spreadsheet to get a count if it’s a close call.

Question 26: Salon Software

Be sure to let them know that you use Salon Iris in your business!


Part 2: Best Practice Sections

You only need to apply for one of the best practice categories, but we recommend applying for multiple categories to increase your chances!

A. Growth

Question 1: Gross Revenue
Use your same values from Question 3 in the main section.

Question 2: Growth

Run the Totals Report for January 1 – June 30, 2015 to get your first 6 month’s revenue and grab the Total value from the Summary column. Then, run the Totals report for January 1 – June 30, 2014 and do the same. Calculate the percentage different in this year’s sales for the first 6 months to last year’s sales during the same time period. (2015 Sales – 2014 Sales)/2014 Sales * 100% = Growth %

B. Compensation and Benefits

This section is all based on your business practices, and doesn’t require any reporting from Salon Iris to answer.

C. Retention & Referral Programs

Question 1 – Question 3:

Your client retention rates and average pre-booking rate can all be obtained on one report in Salon Iris. Go to the Reports menu and select Aveda Equivalent Benchmarking from the main menu. We recommend running the report for January 1, 2014 – March 31, 2015. The first panel shows your data for the overall business, including the three numbers you’re looking for here.
client-retention-prebooking

D. Customer Service

This section does not include any questions that require reports from Salon Iris. Just be sure to brag about all the special details that you put forth to make your client experience unique and positive, keeping them coming back for more!

E. Employee Education

Question 5: Education Spending

If you use the General Ledger in Salon Iris, you can review how much you spent on employee education last year, and divide that by your number of employees.

F. Salon Culture

This section is mostly comprised of an essay to discuss what makes your salon culture successful. While Salon Iris doesn’t have resources to help answer this question, it might be part of your response! Does your use of Remote Access contribute to your salon culture of being accessible and mobile? Maybe you use reports to encourage some friendly competition and run contests for product sales? Be creative here – your business is unique, be sure to describe what you’ve done to make it that way!

G. Inventory Management

Question 1: Product Ordering Frequency

If you use Salon Iris to manage your inventory, you can take a look at your previous product ordering activity to help answer this. Go to the Products and Services menu, and select Product Ordering. On the left, change the display option to show Complete Orders. Then you can glance over the list to see how often you’ve placed orders over the past few months.

Question 4: Shelf Total

To determine how much is currently tied up in your inventory, you can run the Product Shelf Total report in Salon Iris. Go to the Reports drop down menu, and under the Top Reports sub-menu, select Product Shelf Total. At the bottom right, you’ll see the current total Shelf Cost for this question.

H: Philanthropy

Question 1: Total Charitable Donations

If you track charitable donations for products and services on tickets, you likely have a specific “charity” client. You can review the Purchase History of the client over the past year to review how much you’ve donated.

I: Technology

Question 1: Technological Capabilities

If you’re using Salon Iris, that means you can definitely answer “yes” to: salon management software, management by computer reports, and computers for use by employees.
Salon Iris also has the ability to do all of the following, which you may be using in your business: management app, salon website, e-mail newsletter, social media marketing, online appointment booking, automated appointment confirmations, and online gift card purchases.

J. Retail & Merchandising

Question 1: Average Retail per Ticket

You can find the answer to this question by running the Aveda Equivalent Benchmarking report on the main Reports drop down menu. We recommend running the report over the past year. The first panel has data for the overall business, and for this question you should use the RPCT value shown in the top right of the report.

Question 2: Retail vs. Overall Sales

The retail sales percentage over overall sales for 2013 can be obtained by running the Totals report for January 1-December 31, 2013. Use the Products total from the Summary column (the top number) and divide that by the Total at the bottom of the Summary column, to get the percentage value.

K. Planned Profitability

Question 1:

You can refer to your Totals report to find the actual gross revenue for 2014. However, to answer the question fully, you’ll also need to refer to previously compiled budget documents from 2014.

Question 2:

To obtain your retained profit, run the Profit and Loss report for January 1-December 31, 2014. To do so, go to the Reports menu and select Profit and Loss Report. This report will show your total income and your total expenses, which you can use to obtain your Total Net Income, or Profit.

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