I have just opened a hair & nail salon and need help with percentages. Right now I am charging 60% - 40%; meaning the Shop gets 40% of what the stylists make and the keep 60% plus tips. But, my problem now is this; if I buy the shampoo, conditioner, relaxers and perms; should I then charge 50% & 50% percent? Also, I am supplying all the products and implements and nail color and soaking machines and pedicure chairs which use lots of electricity. So please tell me what most Salons and Nail Salons would charge I don't seem to be getting ahead at all. Am I under-charging myself. I don't want to scare of my stylists or my nail techs; but I don't want to have to close down because I can't pay the bills. I live in a small city, nothing like New York or California or Chicago; but I need to be able to pay the bills.:confused: Need answers quickly!!

Most salons I know charge a chair rental and automatically charge employees a certain amount, I don't know what it is where I am but you could go into or call a salon and ask them what they charge

Since I've studied about salon business in cosmetology school, I will provide some information.

Here are the average Expenses for salons in the United Sates.
(Based on total gross income)

Percent
Salaries and commission (include payroll taxes) 53.5
Rent... 13
Supplies... 5
Advertising... 3
Depreciation... 3
Laundry... 1
Cleaning... 1
Lighting and power... 1
Repairs... 1.5
Insurance.. . 75
Telephone.. . 75
Miscellaneous... 1.5
Total expenses... 85
Net profit... 15
... 100%

As you can see, the largest expense items are salaries, rent, supplies and advertising.

Good business operation requires that you have a simple and sufficient record system. So try to keep weekly records, daily records, purchase and inventory records, and service records. This will determine income, expense, profits, or loss.

Cost of services is generally established according to the location of the salon and the type of clientele you expect to serve. A price list should be posted in a place where it can be seen by all clients. You can also go to other salons and check out their price list.