Have you ever thought of how salon owners earn 6 figures? What are their struggles? Or how do they delegate or complete all the various responsibilities?
Most people don’t think about how all of this money gets made. They just see a great business opportunity with lots of potential to earn revenue from customers.
That’s why sometimes it’s hard to make money in the salon business. If you think our job is to cut hair and give people what they ask for, this is not entirely the case.
If your goal is to help a client and focus on the client’s satisfaction, then the profit will have a better chance to increase. So here is a step-by-step guide on how do hair salon owners make money and earn profit.
This guide explains everything that you need to do in order to start making more money and getting satisfied customers.
Let’s dive into how to become a professional salon owner and growing the business steadily.
How to Become a Salon Owner?
Whether it is the nail, spa, or hair industry as a whole, the salon industry is on the rise. Currently, the annual growth increased by over 2%. In the future, it expected to increase even more.
The increase in this industry lends itself to an opportunity to enter in a business and successfully become a salon owner. Through, entrepreneurial passion and implementing some new ideas, it’s an intrinsic process.
If you consider yourself as a salon owner, you should build a brand-wise clientele business. Brand selection is key, along with other elements including who you work with. You must also consider a strong team, salon place, or location and desire to provide professional service by yourself.
Creating this will give you a higher return which means you can create more money owning a hair salon.
How to Make Money Owning a Hair Salon
With the expansion of the beauty industry, hair salon services playing a key role over the past few years. The main reason for this is because people need to style their hair, cut, shave or have some other service done to their head. Having these sorts of issues with people’s hair opens up a vast number of opportunities in how to solve these problems. That is when owning a salon comes in handy. If the salon owner offers high-quality service in a number of hair areas, they can easily increase sales. In reality, making more money means offering good products, good business management, and of course, doing active marketing.
You can add your efforts and involve savviness to earn more profit from new and existing clients to become more efficient. Also, if you can keep expenses within limited boundaries, it’s also possible to stay profitable in business.
However, increase profitability and improve these aspects it’s not an easy job. Before investing more in the hair salon business, it’s necessary to know if a hair business can be profitable.
Can a Hair Salon be Profitable?
The first objective is to grow a healthy, long-term, and sustainable business to earn a good profit. Every month, salon owners make $19,000 profit, and the revenue is $245,000. The average profit margin of this business is 8.2% which is nearly 7.7% higher than any other business.
On top of this, the profit margin ranges from 2%-17% higher if the salon is managed well. The annual revenue of salons or barbershop in the US is $63 billion. This figure is being created by only 257,000 registered salons. These numbers imply that there is indeed ample opportunity to enter the market and to make an impact. The reason behind earning this huge profit is , in part, through offering excellent salon services. Another aspect is by selling more products, and reducing overall expenditure.
There are some other reasons to make more money from owning a hair salon.
How to Make Money from a Hair Salon?
As the salon industry is rising, you can make S.M.A.R.T. Goals to make the business profitable. S.M.A.R.T. stands for:
S-Specific
M-Measurable
A-Attainable
R- Relevant
T- Timely
These goals are generally talked about in business and the salon industry is no exception. The framework is very simple, and you can achieve your goals easily if you follow these guidelines. The purpose of this goal is to make your business more clear and realistic.
One plan you can follow to target your willing customers is to have fixed prices while providing excellent service. Being good at your craft is key in this element and must not be lost in the planning. One of the main reasons customers will come to you will be because of your skills. Later you can delegate your this type of work once your team grows.
Have you ever noticed that most clients return to the salon to ask for service from a specific hairstylist? They like the stylist’s service and charm and come back to the salon.
This is very important in order to create an attachment in the stylist client relationship. For showing appreciation to the skilled worker or hairstylist, you can start a payment plan. This will be an incentive for your worker to stay with you. This enticement to stay can take on many paths, such as a percentage of the sale apart from salary, or trips to certain “team building” activities. This will take on a vital part in employee retention.
As your stylists are bringing in revenue to your business, you can also place different levels such as beginner, intermediate, expert, and structure the payment accordingly.
It can be as follows:
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Annual salary
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Hourly-based
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Commission-based
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Performance-based
Obviously, this strategy increases the employee’s dedication to working with you. Let’s start with the tips they used to get from the client.
How Much do Hairstylists Make With Tips?
Service tips are something individual, and it depends on the hairstylist’s service. Suppose, for a single small service. The client won’t offer any tips. But if the clients take multiple services, they can offer a small tip to the stylist. Usually, it varies from $5-$10 while sometimes it is a percentage of the overall cost.
On the other hand, if clients have coupons and get a discount on their service, usually they give a gratuity to the stylist. Because the coupon systems make the service cheaper for a client, they don’t hesitate to pay individually to the stylist.
How to Make More Money in a Hair Salon
To make money in a hair salon, the first thing is to look at top-line revenue. In short, to increase sales. Without improving the profit status, no business survives. To get the highest benefits following factors also you need to consider an increase to the annual income.
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When you see your business is spreading evenly, you can increase the average amount of each ticket. This ticket is nothing but what the client spends per visit.
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Try to make clients frequently visit your salon. It may be for a different purpose or treatment but try to maintain the frequent visit.
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Pay attention to the number of clients who visit the salon every day. The more people visit your salon, the more sales will generate.
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Instead of short, a long-term stable business is also needed to increase the average income.
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At the end of the month, you can calculate the percentage left after paying other expenses. It will also make sense of making more money. It will help you to make a strong service charge-sheet you can claim to the clients.
Also, you will know how much a hairstylist makes in a calendar week.
How Much Do Hairstylists Make a Week?
Similar to monthly salary, a hairstylist’s weekly payment also depends on the skill level, experience, job location, etc. According to the 2021 research, the weekly payment of a hairstylist in the US is $624.
Based on experience, it can be as high as $1500 and as low as $231. But most hairstylist’s weekly wages are between $442-$683 (According to ZipRecruiter).
So, we can say these numbers are a decent wage. In fact, a very good amount. It is an opportunity for an any hairdresser to thrive. This hairstylist must be advertised somehow. Do you know how to promote a highly professional hairdresser if you own a salon? Let’s take a look on how to do this.
How to Promote Hairdresser?
Hairdressers are generally licensed cosmetologists. They are trained in the wide area of beauty styling techniques. They are trained in the spectrum of hair, skin, face, manicures, pedicures, etc. If you are an individual specialized in the hair salon business, there are plenty of hairdressers that will be willing to join your team.
Finding a good hairdresser can be a hard task. Following the tips below will make the task of finding a competent and skilled stylist easier:
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Counseling capacity with the clients
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Expert and knowledgeable in hair treatment.
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Specializes in all hairstyles.
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How do they treat clients?
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Are they friendly or standoffish?
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Is he/she capable of providing service to all people, including men, women, and children?
How Much do Hairstylists Make Hourly?
In the US, hourly rates depend on the place and location.
|
Annual salary |
Hourly wage |
|
San Jose, CA |
$18.92 |
|
Tanaina, AK |
$18.63 |
|
Oakland, CA |
$18.70 |
|
Concord, CA |
$18.14 |
|
Vallejo, CA |
$18.18 |
|
Seattle, WA |
$18.19 |
|
Jackson, WY |
$18.29 |
|
Norwalk, CT |
$18.24 |
|
Wasilla, AK |
$18.63 |
|
Hayward, CA |
$18.31 |
From these averages we can calculate that the hourly rate spans around $18-$19.
How to Promote My Barbershop?
To reach broader clients and strongly compete against local and chain barbershop business marketing tactics have changed drastically. We can take more aggressive measures in order to compete with other salons. By being a bit more assertive, you can fill up your chairs and promote your newly established barbershop.
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Treat promotions as community initiatives.
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Create discounts like “buy 1 get 1 free.”
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Improve salon marketing
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Build salon’s Website
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Dominate search marketing
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Manage reviews and reputation
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Improve Salon Team
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Work on Client Retention
How Much Does a Hairstylist Make in High-End Salons?
A hairstylist can make monthly earnings on average of $4370 in the US. Again it varies from lower range $1160 to higher $2660, according to the experience. But the majority earning is around $4000.
Another way to make a living in this industry is through commissions. The hairstylist can make a high-end salon by earning a 40-60% commission on the total cost of every service. Although, some salon owners consider sales and experience, it’s an excellent way to partner with a salon owner.
Final Conclusion:
No business guarantees success, and the salon business is no exception. The salon industry is currently showing a positive trend compared to other businesses, it’s easy to explain how hair salon owners are making a good living.
This blog is all about helping salon owners, whether they own a shop or a room in their house. So, if you found this helpful information share this with your friends and let us know if there is something you are struggling with in your hairstylist or barbershop journey. We would love to help.