As a hair salon or beauty clinic owner, you know that figuring out how to price your services is crucial for your business to survive. But let’s be honest, it can also be incredibly stressful, especially when you are running the show by yourself.
You want to charge enough to actually make a profit and pay yourself, but you’re likely worried about pricing yourself out of the market.
There are a few different ways to price your salon services…
Cost-plus pricing:
This is the simplest pricing method. It involves adding a markup to your total costs to determine your final price. Your costs include things like your backbar products, staff wages, and everyday salon overheads (like rent and electricity). To calculate your markup, simply divide your desired profit margin by your costs.
(Tip: If you aren’t sure what your exact costs are, check out our Ultimate Service Cost Calculator Guide).
Market-based pricing:
This pricing method involves setting your prices based on what other salons in your area are charging. You can do this by researching your competition online or looking at their service menus. When setting your prices this way, it’s important to remember the quality of your own work and the location of your salon. If you offer a premium experience, you should absolutely be charging more than the salon down the street.
Value-based pricing:
This pricing method involves setting your prices based on the overall value and experience you provide to your clients. To do this, you need to understand what your clients are actually willing to pay for your expertise, and the feeling of confidence they walk out the door with.
Here are a few tips to help you price your salon services:
Consider your costs: Make sure to factor in absolutely everything. This includes the cost of retail products, labour, and your fixed overheads. (Learn more about how to know your services inside and out).
Research your competition: See what other salons in your area are charging for similar services, but don’t let their numbers dictate your worth.
Understand your target market: What are your ideal clients willing to pay? What specific benefits and results do they get from coming to you?
Set clear pricing goals: Are you trying to maximize your daily profits, attract brand new clients, or build loyalty with the ones you already have?
Be flexible: You will need to adjust your prices from time to time based on the economy, your rising costs, or your business goals.
Let us do the heavy lifting
There is no “one size fits all” way to price your salon services. The only thing that truly matters is that you are profitable at the end of the week.
However, doing this manually means spending hours of your precious time doing math equations just to make sure you aren’t losing money. Why not let Insightful Sums do all the hard work for you?
Instead of messy spreadsheets, our software helps you calculate your prices, track staff targets, and clearly see if every service you perform is making a profit or a loss.
Quick & Painless Setup
No tech headaches and no financial degree required. Get your salon set up in minutes so you can get back to doing what you love behind the chair.
Price Your Services for Profit
Take the guesswork out of your price list. Easily calculate exactly what to charge for every cut, colour, or treatment so you actually make money…..not just cover your costs.
Discount Without Losing Money
Want to run a special promotion? See exactly how a discount will affect your bottom line before you offer it, so you never accidentally work for free.
Set Clear Team Targets
Know exactly what each team member needs to bring in for your salon to stay profitable, without having to do any complicated math.
Simple Retail Markups
Stop wondering if retail is worth it. Quickly calculate your markups to see the exact profit you make on every shampoo, serum, or styling product you sell.
Your Business at a Glance
See exactly where your money is going. One simple, stress-free screen that makes your salon’s finances finally make sense.
Frequently asked questions
How do I know if I’m charging enough for my salon services?
You are charging enough if your service prices cover the cost of your products, your staff’s wages, your salon’s overheads (like rent and electricity), and leave you with a healthy profit margin at the end. If you are working back-to-back columns but still struggling to pay yourself or your bills, your prices are likely too low. Calculating your exact service costs is the first step to knowing your true bottom line.
How often should a hair or beauty salon raise its prices?
As a general rule, you should review your prices every 6 – 12 months. Your costs, from rent and electricity to hair colour and lash supplies, go up every year due to inflation. If you don’t raise your prices to match those rising costs, you are essentially taking a pay cut. Small, regular increases (like 5% to 10% a year) are much easier for clients to digest than a massive jump every three years.
Should I put my salon prices on my website?
Yes, absolutely. Today’s clients value transparency, and hiding your prices can actually turn potential clients away. While some complex services (like colour corrections) might need a “starting from” price, listing your standard rates builds trust. It also ensures that the clients who sit in your chair are already comfortable with your pricing, saving you from awkward conversations at the checkout desk.
What is the best way to calculate my salon’s hourly rate?
To find your hourly rate, you need to add up all of your business expenses for the month (excluding retail products) and divide that by the number of hours your salon is open and generating revenue. This gives you your “break-even” hourly rate. However, doing this math manually can be a headache. Using a dedicated profit calculator, like Insightful Sums, takes the guesswork out of this and gives you your exact hourly rate in minutes.
Steve Moore
Steve is the founder of Insightful Sums and a Salon Profit Specialist with over 10 years of experience owning and operating a multi-national, award-winning beauty salon. After watching his wife work 16-hour days building her dream salon without taking home a proper wage, Steve knew there had to be a better way. He created Insightful Sums to help creative salon owners ditch the confusing spreadsheets and finally master their numbers. His mission is to bridge the gap between creative passion and financial freedom, giving you the tools to price for profit and pay yourself what you deserve.
