How Much Does a Hair Salon Owner Make a Month

Congratulations on opening your hair salon! There is nothing more satisfying than taking that first step into building your own business. Now that you have gotten everything figured out, the last step on the agenda is to make sure you get your salary.

In the United States, a hair salon owner averages $6,224 a month according to Comparably. This comes out to approximately $74,699 a year that a hair salon owner makes on average.

What are some factors that will affect a hair salon owner’s monthly income? There are quite a few things to keep in mind as a hair salon owner. There are two types of hair salons and two types of employment along with all the expenses that will affect your monthly income as a hair salon owner.

Two Types of Hair Salons

There are two types of hair salons that you can decide to operate. You can have a home-based hair salon or you can have a commercial-based hair salon.

If you are operating a home-based hair salon, your overall expenses will be minimum, since you already have a mortgage or pay rent for your current location. You already are paying for utilities as well. By operating an in-home salon you will see an increase in your utilities, and will also need to make sure you have your basic equipment and supplies before opening your salon to the public.

If you are operating a commercial-based hair salon, you will have all the expenses to run your business as well as need to make sure you can cover the expenses at your home as well.

Starting a salon from home can be a more affordable start, however, keep in mind that there are also cons. Such as if your city or state allows you to operate a salon out of your home, your clients knowing where you live, branding and marketing the place where you live, as well as the mental and personal aspect of your work always being right outside your door where you reside.

Expenses and Ways to Keep them Minimized

How Much Does a Hair Salon Owner Make a Month

Basic expenses that you will need to cover are rent, electricity, water, supplies, equipment, and payroll.

Let’s start with building expenses. You will have rent, which will be a set expense. You will need insurance for the building, this is also something that will be a set expense. A business license is also a must-have for your business and will be a controlled expense as well.

Your water can be controlled by making sure that you have the water off when not using it. Your electricity can be controlled by making sure that when no one is in the bathroom or breakroom the lights are turned off. When you leave the salon at closing make sure that all the lights are turned off.

You will also need to order supplies to make sure that you can serve your clients. Supplies include shampoo, conditioner, hair spray, gel, hair coloring, towels, hair clips, brushes, and combs. Your supplies can fluctuate from time to time due to your vendor who may have some of the products on sale. Also, if you have a very busy prior month, you may need to increase your spending on supplies.

Some equipment you will need to have and keep maintained are chairs, blow dryers, computer equipment, software, and lobby furniture. You will have the first initial cost when you open, but after that, you will have to repair or replace anything that breaks.

The amount of money you will spend on payroll will be determined by a couple of factors. The first factor is by which type of employment you have chosen for your hair salon business. A few other areas of payroll include health insurance, retirement, vacation time, personal time, and commission.

Two Types of Employment

There are two types of employment that you can offer as a hair salon owner. You can either decide to offer regular employment to personal care professionals or you can rent the booth or space out to the stylist.

If you chose to have regular employment, you are deciding to pay those individuals an hourly rate and some sort of commission if they up-sell a customer to any beauty supplies. You may also decide to provide benefits and paid vacations to your employees.

If you chose to rent out the booths or spaces available, you will receive a monthly income based on that booth.

Services to Boost Revenue

How Much Does a Hair Salon Owner Make a Month

There is more to hair than just cleaning, cutting, and styling. A lot of businesses when they first open like to keep it simple and start with one or two services then work their way into adding additional services later on. However, you want to make sure that you are thinking about all age groups as well as the many different things that people will look for when it comes to hair care.

First, you want to make sure that you and your team of hair care professionals are skilled in the different types of hairstyles. They need to be able to handle anything that comes into the salon. Whether it be a simple wash and cut or someone coming in and wanting a mohawk.

Another great service that you can offer to your clients is hair coloring. Many clients are going to want multiple services done in that one trip. Hair coloring is one service that you can offer that will get a lot of attention in your hair salon. Some of your clients may need a color touch-up, may want to add some highlights, or just want a different color for a different look.

Another great service you may decide to offer to your clients is eyebrow waxing. It only takes a few seconds to wax eyebrows. This will not only help increase your revenue for your salon, but you will also give your clients the convenience of a one-stop-shop. If they can do more services in one spot, they will most likely get all those services done in one place and even send you referrals.

It is recommended that you keep products that you use for your services in stock. As a client is getting their hair fixed, they will notice how the products feel in their hair and will want to get some for their home. Also, while customers are waiting in the lobby, they like to browse, and usually, when people browse, they buy.

Check out our list of the highest revenue generating services HERE.

Repeat and Referrals

To keep clients returning, you have to build relationships with your clients. Get to know them and make sure you are offering them something for being a repeat customer or sending you referrals.

Clients love freebies. Create a client loyalty program. You can offer a free haircut for every five visits or half off on a hair coloring for every fifth hair color treatment they get with you.

Let’s not forget about those referring clients. The more you please your current clients, the more referrals you will receive. A great incentive would be to give a current client a ten percent discount on their entire service for every referral you receive.

Final Thoughts

As a hair salon owner, you must get your salary. No matter what choices you make for your hair salon, you are in business to make money. It is important to have a budget and work hard to meet those budget needs.

Due to budget reasons, most hair salon owners choose to rent out booths or available space. This is guaranteed income each month even if the salon has a slow month. This will help you to keep your salon open and allow you to take care of all the salon’s expense obligations.

Just a tip, over time your equipment will depreciate. To make sure you are getting the most out of your business, get with your accountant and he or she can help you with tax write-offs for your business. You can write off anything business-related whether it be equipment, supplies, advertising, promotions, and more.

Related Questions

Do Salons Make a Lot of Money? -

Should I hire employees or rent out my booths?

When it comes to your employment choices, there is no right or wrong method. However, most salons rent out booths because there is more money to be made as opposed to employing staff.

Are there any other services that I can offer to my clients other than hair care?

Hair salons are starting to transition into beauty salons where they are designed to offer multiple services to their clients, such as make-up, tanning, and nails. However, if you are wanting to be known for an actual hair salon, keep it simple and keep your business strictly hair-related.

Should I upgrade my hair salon to a beauty salon?

If you chose to upgrade your hair salon to a beauty salon at a later date, make sure you comply with your government and local regulations. If you see in your location that there are not many other services available for your clients, then upgrading to a beauty salon would benefit your clients and your business.


Looking to start your own Salon? Get the documents you need to get organized and funded here.

Please note: This blog post is for educational purposes only and does not constitute legal advice. Please consult a legal expert to address your specific needs.