Is it time to increase your salon service prices?

For many salon owners, raising prices feels uncomfortable. But if you don’t review your pricing regularly, it becomes harder to invest in your team, products, equipment, and overall client experience. Good pricing should reflect what it actually costs to deliver a service, the skill of your team, and the value your salon provides.

Here are the key things to look at:

1. Staff experience and skill

Not all stylists offer the same level of expertise, so pricing shouldn’t be the same for everyone. As stylists gain experience, training, and specialist skills, their work becomes more valuable—and clients are usually happy to pay for better results. Ask yourself:

• Do you have different pricing levels for junior, experienced, and senior stylists?
• Have your stylists completed advanced training recently?
• Do some team members specialise in services like blonding, colour correction, smoothing, or extensions?
• Have wages increased in line with minimum wage requirements and industry agreements?

A tiered pricing system helps you stay profitable while rewarding growth and skill development.

2. Product costs

Salon product costs don’t stay the same—they increase due to inflation, exchange rates, and supplier price changes. Many salons absorb these increases without adjusting prices, which slowly reduces profit. Check:

• Colour costs per service (need a template? Click here)
• Treatment product cost
• Shampoo, conditioner, and styling products used a basins and stations
• Foils, gloves, towels, and other disposables

If costs have gone up, your prices may no longer cover what it takes to deliver the service.

3. Service time

Time is money in a salon. Every minute spent on a client has a direct cost attached to it through staff wages, utilities, rent and lost opportunities to serve another client.

For example, if a service now takes 90 minutes instead of 60, but the price is unchanged, you’re effectively earning less per hour. Tracking actual service times can show that some services are underpriced relative to the time they consume. Some services also involve more labour than product cost—like smoothing treatments that require multiple steps and ironing. Pricing should reflect the time and skill involved, not just product usage.

4. Salon overheads

Your overheads fall into two categories: Fixed overheads stay the same each month. Variable overheads change based on your usage.

Fixed	Variable
Rent	Card payment fees
Electricity and water – basic charges	Electricity and water (usage charges)
Insurance	Cleaning and laundry costs
Software subscriptions	Marketing expenses
Security services	Equipment maintenance

These costs should be built into your service pricing so they’re covered consistently.

5. Occupancy rate

Your costs should be shared across the hours you’re actually generating income. For example:

• Open 128 hours per month
• Only 96 hours are fully booked

Your overheads should be divided across those 96 working hours to calculate your true hourly cost, which then informs your pricing.

6. Demand for your services

A full appointment book is often a sign that your prices are too low. If clients struggle to get bookings or you have waiting lists, it may be time to increase prices. High demand usually supports higher pricing.

7. Comparing yourself to the market

Competitors shouldn’t set your prices—but they do give context. Consider:

• Salon quality in your area
• Your team’s experience
• The products you use
• The overall client experience

You don’t need to be the cheapest or the most expensive—just priced fairly for your value.

8. Healthy profit margins

A busy salon isn’t always a profitable one. Keep an eye on:

• Profit per service
• Labour costs as a percentage of income
• Product costs as a percentage of income
• Overall net profit

If margins are shrinking, even with strong bookings, pricing may need attention.

How often should salons review pricing?

Don’t wait years between price increases. A better approach is to review prices once a year and make small, steady adjustments. Clients are more comfortable with gradual increases than big jumps.

In summary

Pricing shouldn’t be guesswork. Successful salons know their costs, track their profits, and price according to the real value they offer. Instead of asking, “Can we increase our prices?” a better question is: “Do our prices still reflect the true cost and value of our services?”