This article was written by our expert who is surveying the industry and constantly updating the business plan for a barbershop.
Running a barbershop can generate substantial monthly income when managed correctly, with successful owners earning between $5,000 and $25,000 per month after expenses.
The barbershop industry offers solid profit margins ranging from 10% to 25%, depending on location, pricing strategy, and operational efficiency. Premium barbershops focusing on experience and upselling consistently outperform budget competitors in both revenue and profitability.
If you want to dig deeper and learn more, you can download our business plan for a barbershop. Also, before launching, get all the profit, revenue, and cost breakdowns you need for complete clarity with our barbershop financial forecast.
Barbershop owners' monthly earnings vary significantly based on their business model, location, and operational efficiency.
Understanding the financial dynamics of a barbershop requires examining client volume, service pricing, staffing costs, and fixed expenses across different performance tiers.
| Performance Tier | Monthly Revenue | Monthly Expenses | Net Margin | Owner Take-Home |
|---|---|---|---|---|
| Struggling Barbershop | $6,000 - $10,000 | $5,400 - $9,000 | 5% - 10% | $2,000 - $4,000 |
| Average Barbershop | $12,000 - $20,000 | $10,200 - $17,000 | 10% - 15% | $5,000 - $8,000 |
| Premium Barbershop | $25,000 - $50,000 | $20,000 - $37,500 | 20% - 25% | $10,000 - $20,000 |
| High-Volume Shop | $35,000 - $60,000 | $28,000 - $45,000 | 15% - 25% | $12,000 - $25,000 |
| Urban Location | $20,000 - $45,000 | $16,000 - $36,000 | 12% - 20% | $8,000 - $18,000 |
| Suburban Location | $15,000 - $30,000 | $12,000 - $24,000 | 15% - 20% | $6,000 - $12,000 |
| Rural Location | $8,000 - $18,000 | $6,400 - $14,400 | 15% - 20% | $3,500 - $8,000 |
How many clients does a typical barbershop serve per day, and what is the average revenue per client?
A typical barbershop serves between 8 and 15 clients per barber per day, with high-volume shops reaching 20 to 25 clients daily.
The average revenue per client varies significantly based on the barbershop's positioning and service offerings. Basic haircut services generate $30 to $45 per client, while premium establishments offering specialized services can earn $50 to $150 or more per visit. The key difference lies in the service mix and upselling capabilities of each barbershop.
Premium barbershops typically serve fewer clients (5 to 10 per day) but generate higher revenue per client through specialized services like hot towel shaves, beard treatments, and scalp therapies. These establishments focus on quality over quantity, creating a more personalized experience that justifies higher pricing.
Retail product sales add an additional 10% to 20% to the average ticket size, with clients purchasing hair care products, beard oils, and styling tools. Successful barbershops train their staff to recommend products that complement the services provided, creating additional revenue streams beyond basic cuts.
Location plays a crucial role in determining both client volume and average spend, with urban barbershops typically commanding higher prices but facing more competition for client acquisition.
What are the average daily, weekly, and monthly gross revenues for barbershops across different tiers?
Barbershop revenues vary dramatically based on location, service quality, and business model, ranging from $6,000 to $50,000 in monthly gross revenue.
| Barbershop Tier | Daily Revenue | Weekly Revenue | Monthly Revenue |
|---|---|---|---|
| Low-End/Basic Shop | $240 - $400 | $1,440 - $2,400 | $6,000 - $10,000 |
| Mid-Range Shop | $500 - $800 | $3,000 - $4,800 | $12,000 - $20,000 |
| High-End/Premium Shop | $1,000 - $2,000 | $6,000 - $12,000 | $25,000 - $50,000 |
| Urban High-Volume | $1,200 - $2,500 | $7,200 - $15,000 | $30,000 - $60,000 |
| Suburban Standard | $600 - $1,200 | $3,600 - $7,200 | $15,000 - $30,000 |
| Rural/Small Town | $300 - $700 | $1,800 - $4,200 | $8,000 - $18,000 |
| Chain Franchise Location | $800 - $1,500 | $4,800 - $9,000 | $20,000 - $38,000 |
What types of services are typically offered, and what are their respective price ranges?
Modern barbershops offer a diverse range of services beyond basic haircuts, with pricing that reflects the complexity and time investment of each service.
Basic haircuts remain the foundation service, typically priced between $20 and $60 depending on location and barbershop positioning. Beard trimming services range from $15 to $40, while specialized hot towel shaves command premium prices of $30 to $100 or more in upscale establishments.
Hair coloring and styling services represent significant revenue opportunities, with prices ranging from $60 to $150 for comprehensive color treatments. Scalp treatments and therapeutic services typically cost between $40 and $80, appealing to clients seeking wellness-focused experiences.
Product retail sales contribute substantially to overall revenue, with individual items priced between $10 and $50. These include pomades, beard oils, shampoos, and styling tools that clients can purchase to maintain their look between visits.
You'll find detailed market insights on service pricing strategies in our barbershop business plan, updated every quarter.
How many barbers usually work in a single shop, and how does staffing impact monthly income?
Most barbershops employ 3 to 5 barbers, with staffing models significantly impacting the owner's monthly income and operational complexity.
The chair rental model proves most profitable for barbershop owners, where barbers pay $150 to $500 per week per chair regardless of their individual performance. This model provides predictable income and transfers business risk to the barbers themselves, making it popular among experienced shop owners.
Commission-based arrangements typically split revenue 50/50 to 70/30 (barber/owner), providing more variable income but requiring active management of barber performance. High-performing barbers may negotiate better splits, while newer barbers often accept lower percentages in exchange for training and client referrals.
Salaried employees are less common in the barbershop industry, typically earning $15 to $25 per hour plus tips. This model provides stability for barbers but creates fixed labor costs for owners regardless of business volume fluctuations.
Optimal staffing depends on location and target market, with urban shops often supporting more barbers due to higher client volume, while rural locations may operate efficiently with just 2 to 3 barbers.
What are the main fixed monthly expenses for a barbershop, and what are their typical cost ranges?
Fixed monthly expenses for barbershops vary significantly by location and shop size, typically representing 60% to 80% of total operating costs.
| Expense Category | Low-End Range | High-End Range | Notes |
|---|---|---|---|
| Rent (Urban) | $3,000 - $7,000 | $8,000 - $15,000 | Prime locations command premium |
| Utilities (Electric, Water, Gas) | $500 - $1,500 | $1,500 - $3,000 | Includes heating, cooling, lighting |
| Insurance (Liability, Property) | $100 - $300 | $300 - $600 | Professional liability essential |
| Licenses and Permits | $50 - $200 | $200 - $500 | Varies by state and municipality |
| Equipment Financing | $200 - $500 | $500 - $1,200 | Chairs, stations, tools |
| Staff Payroll (3-5 barbers) | $6,000 - $12,000 | $15,000 - $30,000 | Depends on staffing model |
| Total Monthly Fixed Costs | $9,850 - $21,500 | $25,500 - $50,300 | Excludes variable expenses |
What are the variable operating costs, and how much do these cost monthly on average?
Variable operating costs for barbershops typically range from $1,200 to $6,600 monthly, fluctuating based on client volume and service offerings.
Supply costs including hair care products, shaving creams, towels, and disposable items represent the largest variable expense category. These costs typically range from $500 to $3,000 monthly, directly correlating with client volume and service complexity.
Marketing expenses vary widely based on the barbershop's growth stage and competitive environment, ranging from $200 for basic social media promotion to $3,000 for comprehensive digital marketing campaigns. Established barbershops often rely more on word-of-mouth referrals, reducing marketing costs.
Point-of-sale systems and technology costs range from $100 to $600 monthly, including booking software, payment processing fees, and customer management systems. Modern barbershops increasingly invest in these tools to improve operational efficiency and customer experience.
Cleaning and maintenance costs, while often overlooked, typically run $200 to $800 monthly including professional cleaning services, equipment maintenance, and facility upkeep essential for maintaining health department compliance.
What is the average net profit margin for barbershops across different performance levels?
Barbershop profit margins range from 5% to 25%, with performance levels directly correlating to operational efficiency and market positioning.
Struggling barbershops typically achieve net margins of 5% to 10%, translating to monthly profits of $1,000 to $2,000. These businesses often suffer from poor location choices, inadequate marketing, or operational inefficiencies that limit both revenue generation and cost control.
Average-performing barbershops maintain net margins of 10% to 15%, generating monthly profits of $3,000 to $6,000. These establishments have established steady client bases and efficient operations but may lack the premium positioning or upselling capabilities of top performers.
Top-performing barbershops achieve net margins of 20% to 25%, resulting in monthly profits of $8,000 to $15,000 or more. These businesses excel at premium service delivery, effective upselling, and operational optimization that maximizes both revenue and profit margins.
This is one of the strategies explained in our barbershop business plan.
Are there significant seasonal trends in revenue, and how should owners prepare for them?
Barbershops experience notable seasonal fluctuations, with revenue variations of 15% to 30% throughout the year based on cultural events and personal grooming patterns.
Peak seasons typically occur during holidays, back-to-school periods, and summer months when clients prioritize appearance for special events and social activities. These periods can boost revenue by 15% to 30% above baseline levels, requiring strategic preparation for increased demand.
Preparation strategies include pre-booking appointment campaigns, offering seasonal gift cards, and creating themed service packages such as "Summer Refresh" bundles or "Holiday Grooming" specials. These approaches help smooth revenue fluctuations while capturing additional income during high-demand periods.
Slower periods often occur during post-holiday months and mid-winter, when discretionary spending decreases and clients postpone non-essential grooming services. Successful barbershop owners prepare by building cash reserves during peak periods and implementing retention strategies during slower months.
Smart barbershop owners also adjust staffing levels seasonally, utilizing flexible scheduling arrangements with barbers to maintain profitability during both peak and off-peak periods without compromising service quality.
How does location affect customer volume, pricing power, and overall profitability?
Location dramatically impacts barbershop profitability, with urban establishments often commanding 50% to 100% higher prices than rural counterparts while facing proportionally higher operating costs.
Urban barbershops benefit from higher customer density and greater pricing power, with haircuts ranging from $50 to $100 compared to $25 to $40 in rural areas. However, urban rent costs can consume 20% to 30% of gross revenue compared to 10% to 15% in smaller towns, requiring careful financial management.
Suburban locations often provide the optimal balance, offering steady customer demand with moderate pricing ($35 to $60 per haircut) and reasonable rent costs. These locations typically support consistent monthly revenues of $15,000 to $30,000 with healthy profit margins.
Rural barbershops face lower competition but limited customer bases, requiring efficient operations to maintain profitability on lower average transaction values. Success in rural markets depends on building strong community relationships and offering exceptional customer service to ensure client loyalty.
Foot traffic patterns vary significantly by location type, with urban shops often relying on walk-in customers while suburban and rural establishments depend more heavily on appointment-based scheduling and repeat clientele.
What financial differences exist between poorly managed, average, and premium barbershops?
The financial performance gap between barbershop management tiers is substantial, with premium establishments generating 5 to 10 times the net income of poorly managed shops.
| Management Tier | Client Retention Rate | Average Spend per Client | Net Margin | Monthly Net Income |
|---|---|---|---|---|
| Poorly Managed | Less than 50% | $25 - $35 | 5% - 8% | $1,500 - $3,000 |
| Average Management | 60% - 70% | $40 - $60 | 10% - 15% | $5,000 - $8,000 |
| Premium Management | 80% - 90% | $80 - $150 | 20% - 25% | $12,000 - $25,000 |
| Exceptional Operations | 90%+ | $120 - $200 | 25% - 30% | $20,000 - $40,000 |
| Multi-Location Chain | 75% - 85% | $55 - $85 | 18% - 22% | $15,000 - $30,000 |
| Franchise Operation | 70% - 80% | $45 - $70 | 12% - 18% | $8,000 - $18,000 |
| Specialized Premium Spa | 85% - 95% | $150 - $300 | 25% - 35% | $25,000 - $50,000 |
What strategies can help improve barbershop profitability?
Profitable barbershops implement systematic strategies that increase both revenue per client and operational efficiency, typically boosting profits by 25% to 50% within the first year.
Upselling techniques prove most effective, with add-on services like beard oil applications or scalp treatments increasing average ticket sizes by 15% to 25%. Training staff to naturally recommend complementary services during appointments creates additional revenue without acquiring new clients.
Modern booking systems reduce no-shows by up to 30% through automated reminders and deposit requirements. These systems also optimize scheduling to minimize barber downtime while maximizing client convenience, directly impacting daily revenue generation.
Retail product sales contribute 10% to 20% of total revenue when properly implemented, requiring strategic product selection and staff training on consultative selling techniques. Successful barbershops position retail as a service extension rather than aggressive sales tactics.
Efficient staff scheduling aligned with peak demand periods maximizes revenue potential while controlling labor costs. Smart barbershop owners analyze historical data to optimize barber schedules, ensuring adequate coverage during busy periods without excessive labor costs during slower times.
We cover this exact topic in the barbershop business plan.
What is a realistic monthly take-home income for barbershop owners across different business tiers?
Barbershop owner take-home income varies dramatically based on business performance, ranging from $2,000 monthly for struggling operations to $25,000 or more for thriving establishments.
Struggling barbershop owners typically take home $2,000 to $4,000 monthly after covering all business expenses and taxes. These businesses often operate with minimal profit margins due to high competition, poor location choices, or operational inefficiencies that limit growth potential.
Average-performing barbershop owners earn $5,000 to $8,000 monthly in take-home income, representing businesses with established client bases and efficient operations. These establishments have achieved steady profitability but may lack the premium positioning or advanced marketing strategies of top performers.
Thriving barbershop owners can achieve monthly take-home incomes of $10,000 to $25,000 or more, particularly those operating premium establishments or multiple locations. These businesses excel at customer retention, premium service delivery, and operational optimization that maximizes both revenue and profit margins.
It's important to note that these figures represent income after all business expenses, loan payments, and estimated tax obligations, providing a realistic picture of actual owner compensation rather than gross business revenue.
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.
Successfully operating a barbershop requires understanding the financial dynamics that separate thriving businesses from struggling ones.
The key to barbershop profitability lies in optimizing the balance between client volume, service pricing, and operational efficiency while maintaining exceptional customer experiences that drive retention and referrals.
Sources
- Reddit - How many clients do you see in a day?
- The Salon Business - How many clients a stylist should have
- Original Clip Joint - Average barber prices 2024
- Salon Aurora Barbershop - Haircut cost at a barbershop
- Barber Sets - Barbershop economics understanding pricing and profit margins
- Barber License - Renting a chair vs working on commission as a barber
- Zolmi - Barber shop expenses
- Profitable Venture - How much barbershop make
- FinModels Lab - How much business owner makes barber shop
- Trafft - Are barbershops profitable