Question 1

Why is break-even higher than my fixed costs?

Accepted Answer

Because most of each dollar is already spoken for. If commission, supplies and processing take 59 cents, only 41 cents of every dollar goes toward rent — so covering $8,000 of fixed costs takes about $19,400 in revenue, not $8,000.

Question 2

What counts as a fixed cost?

Accepted Answer

Anything that costs the same whether you are busy or empty: rent, software, insurance, utilities, a salaried front desk. If it scales with services performed, it belongs in the percentage fields instead.

Question 3

My number looks impossible. What now?

Accepted Answer

That is useful information rather than a broken calculator. Three levers move it: raise the average ticket, cut the commission rate, or cut fixed costs. Volume alone will not fix a break-even that sits above what your chairs can physically produce.

Question 4

Does this include my own pay?

Accepted Answer

Only if you put it in fixed costs. Many owners leave themselves out, which makes break-even look reachable when it is really the point at which everyone except the owner gets paid.

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