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Salon money questions, answered.
The questions salon owners ask us most, answered the way we answer them for clients: the short answer first, then the math behind it.
- 01What should labor cost in a salon?In a commission salon, total labor around 40% of revenue is healthy and 50% is a warning sign. The 30% benchmark from general small-business advice does not apply to salons.Read the answer
- 02Commission or booth rent: which is better for a salon?Neither wins by default. Commission keeps more money and control in the salon but carries labor and product costs; booth rent is steady and simple but hands the renter control of hours, prices, and clients.Read the answer
- 03How should a salon price a service like balayage?Price from cost up: chair time times overhead per chair hour, plus product, plus commission with payroll tax, card fees, and a target profit. Then check the result against your market.Read the answer
- 04Is gift card money revenue for a salon?No. A gift card sale is a liability, a service you owe, until the card is redeemed. Book it to a gift card liability account and count it as revenue only when the guest uses it.Read the answer
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