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How much does a beauty salon owner make

How much does a salon owner make | Average salon owner salary

Are you thinking of starting your own beauty salon and curious about the earning potential? Look no further! As the beauty industry continues to grow, there has never been a better time to become a salon owner. With the right strategies and dedication, owning a beauty salon can be a lucrative business venture. In this article, we'll dive into the exciting world of salon ownership and explore the factors that contribute to a salon's profitability. Get ready to learn how much does a salon owner make and gain valuable insights into how you can maximize your earnings in the industry!

How much does a beauty salon owner make

Navigating the lucrative yet competitive beauty industry, prospective salon owners often inquire about potential earnings. The income of a beauty salon owner can vary significantly, contingent upon factors like location, services offered, clientele, and operational efficiency. In this guide, we explore the financial landscape associated with owning a beauty salon, providing insights into expected revenues, expenses, and profit margins, illuminating the pathway to financial success in salon entrepreneurship.

What affects a salon owner's income

Owning a beauty salon can be a fulfilling and lucrative business, but it's not without its challenges. The salon owners salary can be affected by a number of factors, including the cost of licenses, location, type of services offered, management, marketing, costs of materials, and salary structure. Each of these factors plays a critical role in determining the success of a salon and its overall profitability. In this article, we will take a detailed look at each of the factors that affect the average salon owners salary and give an idea of how salon owners can optimize their activities to maximize their income.

Cost of licenses

The cost of licenses is one of the significant factors that can impact a salon owner income. Depending on the state and local regulations, licenses for a salon can range from a few hundred to thousands of dollars per year. These licenses may include cosmetology licenses, salon permits, health and safety permits, and business permits. Some states may also require additional licenses for specialized services, such as nail or skin care services. The cost of these licenses can add up quickly and impact a salon's overall profitability.

Additionally, the process of obtaining and renewing licenses can be time-consuming and complex, requiring salon owners to navigate various regulations and paperwork. It's crucial for salon owners to factor in the cost of licenses when planning their budget and pricing strategy to ensure that they can cover these expenses while still making a profit. Failure to comply with licensing regulations can result in fines and even the closure of the salon, further impacting the salon owner's income. Therefore, salon owners should prioritize obtaining and renewing all necessary licenses to maintain their business's legal and financial health.


Location is an important factor that can have a significant impact on a salon owner's income. The location of a salon can determine the number of customers that come in, the frequency of their visits, and the prices that can be charged.

Salons located in affluent neighborhoods are likely to have more clients who are willing to pay premium prices for services. Typically, these customers are more concerned with the service quality and experience they receive. Therefore, a salon in a high-end area can charge more for services than one located in a less affluent neighborhood.

A salon's revenue can also be affected by the number of people who frequent the area. Salons located in busy areas such as shopping malls, downtown areas, and business districts are likely to attract more customers. These areas usually have high pedestrian traffic, making it easier for potential customers to spot the salon and decide to give it a try.

Furthermore, accessibility is another essential factor in the location of a salon. Salons that are easy to access by public transportation or personal cars are likely to attract more customers than those that are located in remote areas. This is because customers are more likely to choose a salon that is convenient and accessible.

A salon's location can also have an effect on the level of competition it faces. In areas with a high concentration of salons, the competition can be fierce, and it may be more difficult to attract and retain clients. However, in areas with few salons, there may be more demand for services, and the salon may be able to charge higher prices.

Type of services and their quality

The type of services a salon offers can have a big effect on how much money the owner makes. Salons that offer a wide range of services, such as haircuts, color treatments, nail services, and spa treatments, are more likely to attract a diverse range of clients and generate higher income.

In addition, offering specialized services, such as bridal packages, keratin treatments, or hair extensions, is a straightforward way to increase revenue. These specialized services are often priced higher than regular services, which can lead to higher profits for the salon.

Another factor to consider is the quality of the services offered. Salons that provide high-quality services with attention to detail are more likely to retain clients and generate repeat business, leading to a steady stream of income. Additionally, salons that use high-quality products and equipment can often charge higher prices for their services.

Salon reputation

The reputation of a salon is also crucial in determining the income of the salon owner. Salons with a good reputation for good customer service and high-quality services are likely to get more customers and generate higher income. On the other hand, salons with a poor reputation may struggle to attract clients and generate income.


The prosperity and earnings of salon owners depend heavily on how well they are managed. Proper management of finances, inventory, and staffing can lead to cost savings and increased profitability. Additionally, effective leadership and communication can make employees happier and more productive, thereby enhancing the customer experience and generating more revenue. Profits can be maximized, and long-term success achieved if a salon owner can effectively manage their business operations.


Marketing is another essential factor that can significantly affect a salon owner's income. Effective marketing strategies can bring in new customers, retain existing ones, and promote the salon's services to a larger audience. Utilizing social media, email marketing, and word-of-mouth referrals can help increase revenue and generate more business. Moreover, offering promotions, loyalty programs, and other incentives can encourage customers to visit the salon more frequently and spend more money there. A solid marketing strategy can help salon owners stand out from the competition and increase their income in the long run.

Costs of materials

The cost of materials, such as beauty products, tools, and equipment, is a critical factor that can impact the income of a salon owner. High-quality materials can result in better outcomes, leading to satisfied clients and increased revenue. However, the cost of these materials can also eat into profits, so finding a balance between quality and affordability is crucial. Keeping an eye on stock and making bulk purchases can also cut expenses and boost profits. Proper management of material costs can help salon owners maximize their income and achieve stable success.

Salary structure

The salary structure of a salon, including wages and commissions paid to employees, is a significant factor that can impact the income of a salon owner. Employees should be financially rewarded for providing high-quality service and building a loyal customer base. Employees are more likely to put in extra effort if they are paid competitive wages and given the opportunity to earn additional money through commission. But if salaries aren't set up properly, that can lead to high labor costs and lower profits. Proper management of the salary structure can help a salon owner maintain a healthy income and a successful business.

How to make more money as a salon owner

Salon owners have multiple options to increase their earnings. Here are some ways to do so:

  • Set achievable goals and develop a plan to achieve them, including targets for increasing revenue, client retention, and upselling services.
  • Improve marketing efforts to attract new clients and retain existing ones through various methods such as social media marketing, email campaigns, targeted advertising, and influencer partnerships.
  • Create a website and engage in social media activities to enhance visibility and attract potential clients.
  • Sell related products such as hair and skin care products to provide an additional stream of income for the salon.
  • Offer package deals and special promotions to incentivize clients to try new services and increase their spending.
  • Provide exceptional customer service to create a loyal customer base and encourage positive word-of-mouth referrals.
  • Host events and workshops to showcase the salon's expertise and attract new clients.

Clearly, in order to implement these strategies effectively, salon owners must prioritize their time and eliminate ineffective or unnecessary activities. The best way to do this is by reducing their daily routine, which can free up time for more important tasks.

Improve your beauty business with Suplery

There are plenty of actions that salon owners or managers perform daily that can be eliminated using modern management techniques or software solutions. Research shows that up to 15% of all working hours are dedicated to inventory and ordering issues, which in most cases is a manual process that requires attention, good planning, and regular everyday actions. However, this can be easily automated using the new technology Suplery. With Suplery, you can streamline your inventory management process, reduce waste and stock-outs, and improve cash flow. The advantages of Suplery include its easy-to-use software that can help you keep track of your inventory levels, place orders with suppliers, and track your expenses all in one place. Plus, its automated reordering feature can help you avoid stock-outs and ensure that you always have the products you need to keep your customers happy. By leveraging the benefits of Suplery, salon owners can focus on growing their business and increasing revenue instead of spending time on manual inventory and ordering tasks. 

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Frequently asked questions

How much money does a salon owner make?

It's difficult to provide a specific number as salon owners' incomes can vary greatly. According to the Bureau of Labor Statistics, the median annual income for self-employed hairdressers and cosmetologists was $28,770 in 2020. However, location, services provided, and management skills can have a substantial impact on a salon owner's income.

What factors affect the salon owner's income?

The major factors that can affect a salon owner's income are location, type of services provided, management skills, marketing efforts, material costs, and salary structure.

How to make more money as a salon owner?

Setting attainable goals, enhancing marketing efforts, developing a website and social media presence, and selling homecare products can help salon owners increase their income. But the key to success lies in focusing on the issue that can bring the most value to the business and streamlining and automating manual tasks.

Do salon owners make good money?

Salon owners can make good money, with incomes varying widely. Success depends on factors like location, services offered, management skills, and market demand. Profitability often improves with experience and the establishment of a loyal clientele.

How much does a salon owner make a year?

A salon owner’s annual income can vary significantly. On average, they may earn between $30,000 to $150,000, but this can fluctuate based on various factors. These factors include the salon's location, size, services offered, number of clients, and years in operation.

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Last updated on Apr 25, 2023

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