This article is designed to guide you in setting the right pricing for your barbershop business. By understanding market conditions, cost structures, and customer behaviors, you can develop a pricing strategy that maximizes profitability while attracting the right clientele.
Our business plan for a barbershop will help you build a profitable project
This article breaks down key questions you should ask when determining your barbershop pricing. These insights are drawn from industry standards and real-world examples to give you a clear, actionable guide.
You’ll find detailed market insights in our barbershop business plan, updated every quarter.
Setting the right pricing for a barbershop involves understanding several key factors: local competition, service costs, and customer preferences. This guide outlines the necessary steps for determining the right pricing strategy that will work for your business.
| Key Factor | Details | Recommendations |
|---|---|---|
| Average Pricing | In central Bangkok, men’s haircuts range from 350–1,400 THB depending on the location and service level. | Price between 350–600 THB for local clientele, and 1,000+ THB for high-end or expat-focused services. |
| Client Volume | Barbershops average 60–90 clients per week per chair, or 250–400 per week for a shop with multiple chairs. | Lower prices attract higher volumes, while higher prices tend to attract fewer but more loyal clients. |
| Cost Structure | Rent: 25,000–45,000 THB/month; Utilities: 3,000–4,000 THB/month; Staff: 20,000–35,000 THB/month per barber; Products: 500–1,500 THB/month. | Carefully monitor and optimize costs, especially for rent and staff salaries, as these are the largest overheads. |
| Profit Margin | A typical profit margin is 15–25%, with some high-performing shops achieving margins of 30% or more. | Set realistic profit goals, and ensure upselling services or products to increase margins. |
| Competitor Services | Competitors often offer bundled services such as haircuts and beard trims, luxury shaves, scalp treatments, and facials. | Offer value packages to increase average ticket size while keeping services relevant to your market. |
What is the average price range currently charged by barbershops in the same area?
The price range for barbershops in central Bangkok currently spans from 350 to 1,400 THB for a men's haircut. Local barbershops tend to charge between 350 and 600 THB, while high-end and expat-focused establishments set their prices above 1,000 THB. The price variation largely reflects the type of service and location of the shop.
This is a key factor in setting your pricing strategy, as understanding local competition can help you position your services correctly. Adjusting your pricing to either be more competitive or premium can be strategic depending on the clientele you aim to attract.
You’ll find detailed market insights in our barbershop business plan, updated every quarter.
What is the average number of clients a barbershop in this area serves per week and how does pricing affect that volume?
The average barbershop serves 60 to 90 clients per week per chair. If you operate a shop with multiple chairs, you can expect between 250 to 400 clients per week. Lower prices typically drive more walk-ins, while higher-end pricing often results in fewer but more loyal customers.
Higher volumes are typically seen in local or lower-priced barbershops, while more premium shops with higher prices tend to attract a steady flow of regulars who value the experience over cost.
This is one of the strategies explained in our barbershop business plan.
What is the exact cost structure per service, including rent, utilities, staff salaries, and products used?
Understanding your cost structure is essential for pricing your services effectively. Below is a breakdown of the average costs you can expect:
| Cost Item | Average Cost | Details |
|---|---|---|
| Rent | 25,000–45,000 THB/month | Rent depends on location; city-center locations are at the higher end of this range. |
| Utilities | 3,000–4,000 THB/month | Utilities include electricity, water, and internet. |
| Staff Salaries | 20,000–35,000 THB/month per barber | Experienced barbers earn towards the higher end of this range. |
| Products | 500–1,500 THB/month per chair | Includes consumables like shampoo, aftershave, and styling products. |
What percentage profit margin is typically considered sustainable for a barbershop in this market?
The typical sustainable profit margin for a barbershop is between 15% and 25%. Some shops with efficient operations and high-quality services may achieve margins exceeding 30%, particularly through upselling or offering premium services.
Focus on upselling and offering packages to improve margins. Efficient operations, including controlling product and labor costs, also contribute to maximizing profitability.
We cover this exact topic in the barbershop business plan.
What additional services or packages do competitors offer and how are they priced?
Many competitors offer bundled services like haircuts with beard trims, luxury shaves, and scalp treatments. Packages such as "Gentleman’s Cut" or "Complete Makeover" are designed to increase the average ticket size, and they range from 600 to 1,500 THB depending on the combination of services.
Consider offering similar packages to maximize revenue and create a more value-oriented experience for your clients.
It’s a key part of what we outline in the barbershop business plan.
What is the expected price sensitivity of customers in this location based on demographics and income levels?
Customers in central Bangkok show varied price sensitivity. Younger clients and locals tend to be more price-conscious, favoring services priced under 600 THB. However, affluent clients and expats are willing to pay 1,000+ THB for upscale services or a more personalized experience.
Understand your target demographics and price accordingly. Adjust your pricing strategy to cater to either budget-conscious or high-end clients depending on your focus.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.
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