How to price salon services: the per-hour method for NI salons

Most salons set prices by looking at the salon down the road and knocking off a pound. The trouble is, you don't know their costs, and they probably didn't work theirs out either. Pricing by the hour is a simple way to make sure every service pays its way.

Updated 9 October 2026 · Belfast Salon Desk Kit

Why price by the hour

In a salon, time in the chair is what you sell. A cut and blow-dry, a full head of foils and a gel manicure all use chair time, staff time and products. If you know what an hour of chair time costs you, you can price any service by how long it takes, plus the products it uses.

Step 1: add up your monthly overheads

List what it costs to keep the doors open for a month, whether or not anyone books:

  • rent and business rates
  • electricity, gas, water and broadband
  • insurance, booking software, card machine fees, accountant
  • cleaning, laundry, towels and repairs
  • marketing and subscriptions
  • loan or equipment repayments

Use real figures from your bank statements. Divide annual bills by 12.

Step 2: add wages

Add the monthly cost of staff wages, including employer's National Insurance and pension contributions, and holiday pay. Employees in Northern Ireland are entitled to 5.6 weeks' paid holiday a year, and the National Living Wage is £12.71 an hour from April 2026 for workers aged 21 and over. Include what you need to pay yourself, too. If you don't, your prices will only ever cover everyone else.

Step 3: work out your bookable hours

Bookable hours are the hours stylists can realistically spend with clients in a month. Take opening hours, multiply by the number of working stylists, then knock off time that isn't sold: gaps between clients, cleaning, training, quiet mornings. Many salons find they sell well under the full number of hours they're open. Be honest here. This is where most pricing goes wrong.

Step 4: your cost per chair hour

Divide your monthly overheads plus wages by your bookable hours. That's what each sold hour needs to bring in just to break even, before products and profit.

Example (made-up figures): overheads £4,000 + wages and your pay £9,000 = £13,000 a month. 3 stylists, about 100 sold hours each = 300 hours. £13,000 ÷ 300 = £43.33 per chair hour to break even.

Step 5: add products and profit

For each service, add the cost of products used (colour, developer, toner, treatments, foils, nail products) and a profit margin on top. Profit is what pays for new equipment, quiet months and growth. A service price might look like this:

Full head foils, 2.5 hours: 2.5 × £43.33 = £108.33 time cost + £18 products = £126.33. Add 20% profit = about £152.

Do this for your main services. Short services like a fringe trim may come out at less than you think, and long colour services often come out at more than you're charging.

Step 6: check against your local market

Now look at what salons near you charge, on their websites, booking pages and Google listings. If your figure is well above the local range, look at your costs, your bookable hours or the time you allow for the service before you assume the price is wrong. If it's below, you may be underselling yourself.

Where you sit depends on what clients get: experience, location, parking, products used, the feel of the salon. A busy salon on the Lisburn Road and a home studio in Newtownabbey can both be right at very different prices.

Step 7: tier your prices

Many salons price by stylist level (junior, stylist, senior, director). This works well with the per-hour method: a senior stylist's hour is worth more because they're faster, more experienced or more in demand. It also gives clients a choice of budget without discounting.

Write a clear price list

  • Use "from" prices for services that vary with hair length or thickness, and say what changes the price.
  • Show how long each service takes.
  • Say what's included (consultation, blow-dry, toner, treatment).
  • Put the same prices on your booking page, website and Google Business Profile.

Clients need to know the total before you start. A surprise at the till damages trust more than a higher price.

Raising prices

Review prices at least once a year, and when your costs change, such as a rent review or a minimum wage rise. Give clients a few weeks' notice on your booking page and social media, and explain briefly. Most regulars accept a fair rise. Losing a few price-sensitive clients can free up time for better-paying ones.

Want it done for you? The price list templates (£12) include a per-hour pricing sheet that works out contribution per hour for each service, plus editable price list designs.

Start with a free Monday sheet

The Belfast salon owner's Monday sheet tracks takings, bookings, rota gaps and reviews on one printable page, so you can see whether your prices are working week by week. Free, no email needed.

Frequently asked questions

How do salons work out their prices?

A reliable method is to divide your monthly overheads and wages by the hours you actually sell, which gives a cost per chair hour. Multiply by the service time, add product costs and a profit margin, then check against local prices.

Should a salon use "from" prices?

Yes, for services that vary with hair length, thickness or time, as long as you explain what changes the price and confirm the total before starting.

How often should a salon raise its prices?

Review them at least once a year and whenever your costs change significantly, such as a rent review or a rise in the minimum wage.

More guides

General information, not legal, tax or professional advice. Rules change, so check the official sources linked above before you rely on them.