What Does Your Salon Actually Cost You?

If I asked you right now, “What does your salon cost you to run every single day?” Could you answer?

Most owners can’t. And that’s exactly why their bank account often tells a very different story than their revenue.

Let’s walk through the numbers of a real $1M/year salon and see what it actually costs to open the doors.

The Illusion of Profit

On paper, this salon looks incredible. It brings in $85,000 a month, about a million a year.

Sounds like the owner should be rolling in profit, right?

Not quite. Once rent, payroll, and products are covered, the owner is left with less than 10% profit.

Because here’s the truth: being busy doesn’t mean being profitable.

Breaking Down Overhead

Before we even touch payroll or product, let’s look at basic overhead:

• Rent: $6,000
• Utilities: $1,200
• Insurance: $600
• Software/subscriptions: $800
• Marketing: $1,500
• Supplies & cleaning: $900
• Laundry/towels: $500
• Décor/maintenance: $500

That’s $12,000 a month just to keep the lights on.

Spread across 25 working days, that’s about $480 per day just to keep the doors open.

In other words: before a single service is done, you’re already $480 in the hole.

Payroll: The Profit Killer

Payroll is almost always the biggest cost in a salon. For this one:

• Stylists’ wages/commissions: $38,000
• Front desk/admin: $6,000
• Payroll taxes & benefits: $4,000
  
  

That’s $48,000 a month, which equals 56% of revenue, much too high.

A healthy target is 35–45%. At 56%, payroll is eating profits alive.

Product Costs Add Up

Color, toner, backbar, developer = easy to underestimate.

This salon spends about $10,000 a month on products. If those costs aren’t passed back to clients, the salon is swallowing that expense whole.

Now add it all up:

• Overhead: $12,000
• Payroll: $48,000
• Products: $10,000
  
  

That’s $70,000 in costs every single month.

So out of $85,000 in revenue? Just $15,000 left.

That’s only 17% profit, before taxes, emergencies, or the owner paying themselves.

What It Really Costs Per Day

When you spread $70,000 in costs over 25 working days, that’s $2,800 per day.

Here’s the harsh reality: if you don’t bring in at least $2,800 today, you’re losing money.

And the little things add up fast.

If one stylist undercharges by just $20 per client and sees 4 clients in a day, that’s $80 lost. Multiply that by a month, it’s $2,000. With 8 stylists? That’s $16,000 gone, more than the salon’s entire profit.

How to Take Control of Your Costs

The good news? Once you know your numbers, you can control them.

• Track your expenses. Use tools like SalonScale’s 14-day free trial to see where your money really goes.
  
  
• Separate your costs. Keep overhead, payroll, and products in clear categories.
  
  
• Price backwards from costs. Don’t just copy competitors, build your pricing to cover your real expenses.
  
  
• Train your staff. Help them understand why pricing matters. Confident stylists mean happier clients and healthier profits.
  
  

Final Takeaway

Revenue means nothing until you subtract the real costs.

Running a salon is expensive, but when you know your daily cost, you can finally price with confidence and protect your profits.

👉 Ready to find out what your salon actually costs?

Start a free 14-day trial of SalonScale today and see your true color and product costs in action.

Your salon doesn’t cost you what you think. It costs you what the math says. Know it, and you control your future. Ignore it, and it controls you.

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