How to price your salon services
Pricing salon services involves calculating your costs (product, time, overheads), understanding your local market, and setting prices that sustain your business. Many salons undercharge because they haven't properly accounted for their time and expenses.
Why pricing matters
Your prices directly determine whether your business is sustainable. Too low, and you work harder for less. Too high without justification, and you lose clients. The goal is pricing that reflects your value whilst remaining competitive.
Calculate your actual costs
Before setting prices, understand what each service actually costs you:
Product costs
How much product do you use per service? Track actual usage, not estimates. Include colour, developer, treatments, disposables—everything consumed during the service.
Time costs
How long does the service take, including consultation, application, processing, and finishing? Your time has value even when you're waiting for colour to process.
Overhead allocation
Rent, utilities, insurance, software, equipment—these costs need to be recovered through your services. Divide monthly overheads by the number of services you perform to get a per-service overhead cost.
If you don't know your costs, you can't know if you're making money. Track them for a month to get real numbers.
Research your market
Understand what others charge in your area:
- Check competitor pricing (their websites, booking pages, or call and ask)
- Note differences in service inclusions (does their price include blow-dry?)
- Consider location factors (city centre vs suburb)
- Account for experience differences (new salon vs established)
You don't need to match competitors, but you should understand where you sit in the market and be able to justify differences.
Pricing strategies
Cost-plus pricing
Calculate your costs, add your desired profit margin. Simple and ensures you don't lose money, but doesn't account for perceived value.
Market-based pricing
Price based on what the market charges. Works if competitors have similar costs and positioning, but can lead to undercharging if everyone is too low.
Value-based pricing
Price based on the value clients receive, not just your costs. Requires strong positioning and client experience to justify premium prices.
Tiered pricing
Different prices for different experience levels. A junior stylist charges less than a senior stylist for the same service. Clients choose based on budget and preference.
When to raise prices
Price increases are normal and necessary:
- When your costs increase (products, rent, wages)
- When you gain experience or qualifications
- When demand exceeds your capacity
- Annually, to keep pace with inflation
- When you haven't raised prices in over a year
Give clients notice before increases. Most understand that costs rise over time.
Common pricing mistakes
- Not accounting for your own time (especially for owners)
- Forgetting overhead costs exist
- Pricing based on what you'd pay, not what your target client pays
- Discounting too frequently, training clients to wait for sales
- Charging the same as when you started, years later
If you're always busy but not making money, your prices are too low.
Communicating value
Higher prices require clear value communication:
- Explain what's included in the service
- Highlight your experience and training
- Show results (before/after photos with permission)
- Emphasise the quality of products you use
- Deliver excellent service that justifies the price
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