massage and bodywork professionals
a community of practitioners
overhead
Replies to This Discussion
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Permalink Reply by Relax & Rejuvenate on
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First, you need to define overhead
General & Administrative expenses is the usual heading, but even then some folks will put stuff in that bucket that others won't
Are we talking just fixed costs -- rent, insurance, utilities/phone?
What about advertising? Advertising with a contract is a fixed cost per month, but doing pay-per-click or something like Groupon is a variable cost -- directly proportional to usage
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We are here to help you reduce your overhead. We are a group of LMTs from Austin, TX and together have created a marketplace for massage therapists in order to help them grow a successful massage practice.
Come with suggestions on how we can help your reduce your business costs and keep more $$ in your pocket!
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Permalink Reply by Carl McMillan LMBT on
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Not sure what Holistic services is selling... and/or to whom... or who's bidding on what.. very confusing answer to 'what is overhead'... a link to some kind of marketing thing.
This brings me to an issue I've had.. which is how to select a marketing company... I don't know. But I can tell you that taking an SEO class at a local tech school might be more helpful to you than hiring anyone. Everyone wants some of your money. And nothing stings more than giving money to someone just for every contact. Because it's not like you're selling cookies here.. you're selling an hour or 2 of your time, physically working with someone on their personal issues.
Living Social or Groupon will charge you 40-50% of your already 50% discounted rate just so they can get some clients to your door. If you charge 100, that's $25 you'll make for a 90 minute session... You'll retain 10% of those clients or maybe a little more. Is it worth it? Maybe, maybe not.
Rent
Utilities (water, gas, phone, internet)
Business services (merchant account, POS, online scheduling, gift certificates, etc.)
Sheet and towel cleaning - Use a service or do your laundry
Sheet and towel purchase - You'll need new ones to start and you'll need to replace them later
Soap - hands and dishes (if you serve tea or something)
Paper products (tissues, TP, paper towels)
Bottled water, tea, or whatever water you give your clients
Then you have some stuff that I don't know if it's overhead or just sunk costs:
Your table, stone warmer, furniture, music, speakers, refrigerator, rugs, bolsters, artwork...
Man, after writing all this I feel like I'm really helping the economy lately. ;)
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"Your table, stone warmer, furniture, music, speakers, refrigerator, rugs, bolsters, artwork... "
These are fixed assets -- aka - depreciable items, and depreciation is an overhead expense. But they depreciate on different timelines based on their "useful life". If you are filing as an LLC or S-Corp, they entire amount may be written off in a single year under the 1079 clause if you have qualifying profits to offset these amounts in full.
Leasehold improvements, on the other hand, do not fall under the 1079 exemptions and depreciate over the life of the building (30 years) -- not your lease.
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