TL;DR

Running a salon is about more than great hair—it’s about great margins. The average hair salon profit margin is only 8%, though top-performing salons aim closer to 10–15%. So, how much do salon owners make? It varies widely, but most owners earn between $40,000–$80,000 a year, with high-volume salons bringing in six figures. Boosting profitability comes down to smart strategies: optimize scheduling, grow retail sales, use technology to track numbers, and create loyal clients who keep coming back.

Why Profit Margins Matter in the Salon Industry

Owning a salon is both a passion project and a financial balancing act. You need to cover costs, pay your team, and still have something left over for yourself. With industry revenue topping $53 billion and growing, the opportunities are real—but so are the challenges.

So, how much does a hair salon owner make?

• On average: $40,000–$80,000 annually

• High performers: $100,000+ annually

• The variable? Your profit margin.

Salon Margins 101: Understanding the Basics

Gross Profit Margin

The percentage of revenue left after subtracting the cost of goods sold (COGS). Example: hair color, foils, shampoo.

Operating Profit Margin

Factors in overhead like rent, payroll, software, and marketing. This number tells you if your operations are sustainable or not.

Net Profit Margin

Your “bottom line.” After all expenses, taxes, and interest, how much is truly yours to keep?

👉 Benchmark to know: The typical hair salon profit margin is around 8%. Aim for at least 10–15% if you want long-term stability and growth.

How Much Do Salon Owners Make?

Let’s break it down:

• Small salons (1–3 chairs): Owners often pay themselves last. Income is closer to $30,000–$50,000, depending on overhead.

• Mid-sized salons (4–7 chairs): Profit margins improve with volume. Owners can make $60,000–$80,000.

• Large salons or multiple locations: Strong systems and retail add-ons can push income above six figures.

Translation: Your paycheck is directly tied to how well you manage margins—not just how many hair styles you cut or services you provide.

5 Ways to Boost Margins Without Losing Clients

1. Use Comprehensive Reporting Tools

Software that tracks services, retail, and rebooking rates helps you spot exactly where profits are leaking—and where there is room to grow.

2. Encourage Repeat Visits

Loyalty programs and rebooking prompts keep clients coming back. Lifetime value matters more than one-time sales. It’s easier to retain existing clients than find new ones.

3. Offset Transaction Fees Transparently

Credit card fees eat into margins. Passing along a small, clearly stated processing fee to clients is now standard practice and can make an immediate impact on your bottom line.

4. Grow Retail Sales

Salon services average 8% margins, but retail sales can be 50%+. Train staff to recommend products authentically and organically. 

5. Reduce Overhead with Smart Scheduling

If early mornings and late nights are empty, scale back hours. Optimize stylist schedules to keep productivity high and maximize productivity.

Why Margins Are a Moving Target

Your margins aren’t a “set it and forget it.” They shift with rent increases, supply costs, and client demand. Owners who regularly review numbers and adapt will consistently out-earn those who don’t.

FAQs

What is the average hair salon profit margin?
Around 8%, but top salons target 10–15% to stay competitive and sustainable.

How much do salon owners make per year?
Most earn $40,000–$80,000 annually, with high-performing or multi-location owners bringing in six figures.

How can I improve my salon’s profit margin without raising prices?
Focus on efficiency: implement scheduling software, build loyalty programs, increase retail sales, and cut overhead where demand is low.

Are salons profitable businesses?
Yes—if managed well. The industry is growing, and owners who monitor margins and adapt their strategies see strong profitability and consistent growth.

Final Word

Profit margins may seem like “boring math,” but they’re what keep your dream salon alive. By making small, strategic adjustments—from smarter scheduling to stronger loyalty programs—you’ll not only answer the question of how much does a hair salon owner make but also ensure your number is on the higher end of the scale.

👉 Ready to take control of your numbers? Discover how Boulevard helps salons book more services, reduce no-shows, and maximize margins. [Get a demo today]