Calculate the average grooming price needed per completed appointment to fund monthly overhead, direct service costs, and a target operating surplus. The model separates the cost-only floor from the surplus-inclusive rate and shows the required monthly revenue. Use a weighted average when your menu includes baths, full grooms, add-ons, and pets of different sizes.
The result is a required average ticket across the service mix. The cost-only floor removes target surplus but still covers entered fixed and variable costs.
Accounting profit, owner compensation, taxes, depreciation, and debt service are included only to the extent they appear in your inputs.
At $4,500 fixed cost, $12 variable cost, $3,000 surplus, and 160 appointments, required revenue is $9,420 and the average rate is $58.88.
No. It is the required average collected price across all completed appointments.
Yes. It includes entered fixed costs and the variable cost for each appointment.
Include it in fixed costs or target surplus according to how you use the model, but do not count it twice.
Use expected volume and revenue by service to confirm that the weighted average reaches the calculated target.
Fixed costs and the surplus target are spread across fewer completed appointments.
| Variable | Meaning |
|---|---|
| Fixed costs | Monthly costs not driven by appointment count |
| Variable cost | Direct cost of one completed appointment |
| Target surplus | Cash amount desired after entered costs |
| Appointments | Completed and collected services per month |