Many salon prices are set by looking at the salon down the street. That's a useful check, but it isn't a method: the salon down the street may pay half your rent, or be quietly losing money. The steps below build a price from your own costs first, then check it against the market. They work the same for hair, barbering, nails, lashes, skin and massage.
1. Work out what an hour with a client costs you
Add up everything a typical month costs the business. Include the obvious costs and the ones that are easy to forget:
- Rent or chair or booth rent, utilities and insurance
- Booking software, card processing fees, phone and internet
- Tools, towels, laundry, cleaning and small equipment
- Education, licences and marketing
- The pay you want to take home. If you leave this out, the price only covers the shop, not you.
Then count the hours you actually spend with clients in a month. Not the hours you are open: gaps between bookings, cleaning, admin and no-shows don't earn anything. Divide the monthly total by those hours. That number is your cost per client hour.
2. Time each service honestly
For two or three weeks, note how long each service really takes, from greeting to the next client in the chair, including consultation, cleanup and checkout. Use the typical time, not your fastest. Services that vary a lot, like color on long hair, are a sign you need a starting price or separate prices by length.
3. Add the product each service uses
Color, lightener, developer, toner, gel, acrylic, wax, strips, masks and lash trays all cost money per client. Estimate the product cost for a typical service. For color, many salons weigh bowls for a while to get a realistic figure.
4. Put it together, then add a margin
The base price of a service is:
Base price = (cost per client hour × hours the service takes) + product cost
The base price only breaks even. Add a margin on top for profit, quiet months, price rises from suppliers and the day the dryer breaks. Many owners also round to a clean number.
A worked example (made-up numbers)
Imagine a one-chair studio with monthly costs of $3,000 for the business plus $3,500 the owner wants to take home: $6,500 in total. The owner is with clients for about 100 hours a month.
| Step | Example |
|---|---|
| Cost per client hour | $6,500 ÷ 100 hours = $65 an hour |
| Service: all-over color | Takes 1.5 hours; uses about $12 of product |
| Base price | $65 × 1.5 + $12 = $109.50 |
| Add a 15% margin and round | $109.50 × 1.15 ≈ $126, rounded to $125+ |
These numbers are invented to show the arithmetic. Your rent, hours, product and pay will give different answers, and that's the point: the price should come from your business, not someone else's.
5. Check it against your market
Now look at what similar businesses near you charge for a similar service. If your number is far above theirs, ask why: is the service slower, the product dearer or the hours lower? Sometimes the answer is to change the service (a shorter appointment, a different product, a package) rather than the price. If your number is far below, you may have room to charge more, especially if your book is full weeks ahead.
6. Write prices clients understand
- Use starting prices where time varies: “$125+” with a line of fine print saying length and thickness can change the price.
- Price add-ons separately so the main prices stay simple: toner, treatments, nail art, extra length.
- Say what's included in a short note, such as “includes toner and blow-dry”.
- Keep every price list in step. The front desk, Instagram and your booking app should all show the same prices.
When your prices are ready, make your price list in a few minutes, or start from a sample: hair salon, barbershop, nail salon, spa, lash and brow or esthetician.
7. Review once a year
Costs creep up. Put a date in your calendar once a year to redo steps 1 to 4 with fresh numbers. When you raise prices, tell regular clients ahead of time, change every menu on the same day, and keep the explanation short and confident. Because PriceBoard saves your list in your browser, updating the printed and Instagram versions takes a few minutes.
Supplies for printing
The maker is free. For printing and showing your price list, these are the usual supplies:
- Acrylic sign holders, 8.5 x 11 inch on Amazon
- Acrylic sign holders, 5 x 7 inch on Amazon
- Matte cardstock, 8.5 x 11 inch on Amazon
- Laminating pouches, letter size on Amazon
As an Amazon Associate I earn from qualifying purchases.
Related free tools
- Free invoice generator: bill clients and keep a copy of every sale.
- Salon gift certificate template: sell numbered gift certificates for your services.
Frequently asked questions
How do I work out my cost per hour?
Add up a typical month's business costs (rent or chair rent, utilities, insurance, software, card fees, education and the pay you want to take home), then divide by the hours you are actually with clients in that month, not the hours the doors are open.
Should I charge by the service or by the hour?
Clients prefer a price per service, but the price should come from the time it takes. Time each service for a few weeks, then price it from that time and your cost per hour, plus the product it uses.
How often should a salon raise prices?
There is no fixed rule. Many owners review prices once a year and whenever costs rise or the book stays full for weeks ahead. Tell regular clients in advance and update every printed and online price list on the same day.
What does a plus sign after a price mean?
It means a starting price: the service costs at least that much and may cost more for longer hair, more product or extra time. Say what makes the price go up in the fine print on your price list.
Is this pricing advice for my salon?
No. It is a general method for working out prices from your own numbers. Your costs, local market and laws differ, so check with an accountant for tax and business advice.
More templates and guides
Last updated · Written by the Rooh Sites team. General information with made-up example numbers, not financial, tax or legal advice.