The other half
Your costs set the floor. Your street sets the ceiling.
Every pricing calculator, including this one, works from your own costs. That's the right place to start, but it can't see the salons around you. That's what we do.
What this calculator tells you
The lowest price each service can carry: chair time, stylist pay and payroll costs, product and card fees covered, plus the margin you chose. Charge less and the service loses money.
What it can't tell you
What the 25 to 30 salons nearest you charge for the same service, where your menu sits against them, and which prices you can raise without losing the chair. We measure that, service by service.
How to price salon services: the formula
A service has to pay for five things before it makes a cent: its share of your fixed costs, the stylist, the payroll costs on the stylist's pay, the product in the bowl, and the card fee on the ticket. The calculator works it out like this:
- Fixed cost per booked hour. Monthly fixed costs divided by the hours your stylists are actually booked (stylists × weekly hours × your weeks open ÷ 12 × booking rate). At 50 weeks open that is 4.17 weeks a month, not 4.33 — counting all 52 overstates your capacity and makes every price look lower than it should.
- Direct cost of the service. That hourly figure times the hands-on time, plus product. On hourly pay, add the wage for the hands-on time, grossed up for unbooked hours and payroll costs.
- Payroll costs. Employers pay on top of what the stylist earns. In the US that's Social Security and Medicare (7.65%), unemployment insurance and workers' comp, often about 10% in total. In Canada it's CPP (5.95%), EI (2.28%), at least 4% vacation pay and WCB, often about 13%. Booth renters and contractors: set it to 0.
- Gross up for anything taken as a percentage of the price: commission (plus its payroll costs), card processing and your target margin.
Price = (fixed share + product + hourly pay) ÷ (1 − commission × (1 + payroll %) − card fee − margin)
Set the margin to zero and you get the break-even floor. Charge below it and that service loses money every time it's booked, however busy the books look.
Then check the floor against the street. If nearby salons charge well above your floor, you're likely leaving money on the table. If they charge below it, the fix is cost or chair time, not price. A free snapshot shows which one it is.