Salon Service Pricing 101 – Career

Editor’s Note: The following is a transcript of a conversation MODERN SALON moderated. The entire webinar is available here. 

We often hear the phrase “know your numbers,” but what does that actually mean? What numbers and factors should you consider when setting your prices? What strategies will ensure you are charging appropriately? And how does pricing relate to branding and avoiding burnout?

To help answer these questions, I’m joined by two industry experts. As we discuss today, feel free to submit questions—we’ll get to as many as we can. This conversation will also be available on demand for later viewing.

Meet the Experts

• Ashley Mitchell – A salon owner, business coach, and consultant with Empowering You Consulting, Ashley helps beauty professionals grow their businesses and increase revenue. During the pandemic, she increased her own salon’s revenue by 106% and now teaches strategies for attracting high-ticket clients, raising service prices, and delivering premium experiences. @AshleyMitchellConsulting 

• Nina Tulio – A salon business coach, motivational speaker, and Oligo Professional business education ambassador. With 27 years in the beauty industry, including experience as a hairstylist, salon executive, and salon owner, she is dedicated to helping stylists and salon owners increase profitability and achieve long-term success. Modern Salon honored Nina in 2023 for her contributions to industry education and support. @NinaTulio

Salon Pricing Strategies

What are the key factors in setting salon service prices?

Nina Tulio:
Pricing has always been a major topic in this industry. Here’s what we need to stop doing:

• Pricing based on feelings
• Copying what other salons are charging
• Relying on Facebook groups for pricing advice

Instead, pricing should be based on facts, not fear. My pricing system is built on five key factors:

1. Time – How long does the service take?
2. Product Cost – What is your cost per service?
3. Business Expenses – Including rent, backbar, payroll, and education.
4. Target Profit – This varies for independent stylists vs. commission salon owners.
5. Hours Worked – Understanding your ideal schedule and workload.

Market research is important, but you shouldn’t copy another salon’s prices. Your pricing should be based on your costs and your goals. Also, budgeting is crucial—I don’t teach pricing without first teaching budgeting.

Ashley Mitchell:
I completely agree. The reality is 90% of salons and spas are not profitable. If you’re looking to competitors for pricing guidance, chances are they’re struggling too.

Many stylists also haven’t adjusted their prices for inflation over the past few years. Before you even think about pricing strategies, ask yourself:

• Do you have a business budget?
• Have you factored in inflation?
• Are you actually profitable?

If you’re missing these foundational steps, you’re likely losing money every day.

Communicating Price Increases

Should stylists announce a price increase to clients? If so, how?

Ashley Mitchell:
We often make this more complicated than it needs to be. My advice? Just do it.

You don’t need a big announcement or a long explanation. Clients expect occasional price increases, and most won’t even question it. If you want, you can provide a 30-day notice for existing appointments, but beyond that, just implement the increase and move forward.

Nina Tulio:
I agree—no need to over-explain. However, if communication is an important part of your brand, a simple email or in-person mention works well. Example:

“We’re making a small adjustment to our pricing, which will take effect at your next appointment. We appreciate your continued support!”

Scripts are also helpful. If you’re a salon owner, make sure your team is prepared to answer pricing questions with confidence. Confidence is everything.

Burnout & Pricing

Can proper pricing help prevent burnout?

Ashley Mitchell:
Absolutely. I used to build my business on volume over quality, packing my schedule with as many clients as possible. Eventually, I burned out—and I wasn’t even making more money.

Proper pricing allows you to work smarter, not harder. You can see fewer clients while maintaining (or increasing) your income. Instead of being an order taker, you can deliver high-value experiences that justify your prices.

Nina Tulio:
Yes! Undercharging is the #1 cause of financial burnout. When you’re not charging enough, you:

• Work longer hours to make ends meet
• Take on clients you don’t actually want
• Still don’t have enough money at the end of the month

Correct pricing gives you the confidence to stop discounting, set boundaries, and build a sustainable business.

Pricing Structures

What are your thoughts on hourly pricing, session pricing, or gender-neutral pricing?

Nina Tulio:
Pricing structures shouldn’t be trends. They should be long-term decisions based on your brand.

• Hourly Pricing – Works for some stylists but can cap income. Requires a strong marketing strategy to educate clients.
• A La Carte Pricing – What I recommend. Back-end pricing is calculated per minute/per hour, but front-facing pricing is presented as easy-to-understand packages.
• Gender-Neutral Pricing – A great move, but needs clarity to avoid confusion.

The most important thing is price transparency—clients need to know exactly what they’re paying for.

Ashley Mitchell:
I agree. Your pricing model should align with:

1. Your brand
2. Your ideal client
3. The level of service you provide

No matter which structure you choose, consistency is key.

Deposits & Cancellation Policies

Should salons require deposits from new clients?

Ashley Mitchell:
Yes! In my salon:

• All new clients pay a deposit.
• Clients with 2+ cancellations must pay a deposit before every appointment.

This reduces no-shows and ensures clients take their bookings seriously.

Nina Tulio:
Deposits work best for high-ticket services or appointments longer than 2 hours. However, if you notice a drop in bookings, you may want to reconsider requiring deposits for smaller services.

Either way, clients must sign off on cancellation policies before booking—don’t assume they’ll read it on your website.