COMMISSIONBOARD

Salon calculators · Price increase

Salon price increase calculator

Enter a service’s current and new price, how many you sell a month, and how many clients you expect to lose. It opens on an example — $45 to $50 on 300 a month — type over it.

Prices

A 11.1% increase.

Clients

Your honest guess. Small, well-explained increases usually lose very few.

Change in monthly revenue

+$750.00

+$9,000.00 a year · $13,500.00 → $14,250.00 a month

You could lose up to 10.0% of these sales and still break even. At 5% lost, the increase comes out ahead.

Before and after

Now300 × $45.00$13,500.00
After285 × $50.00$14,250.00
Difference a month+$750.00

The break-even rule

The number that matters is how many sales you could lose before the increase stops paying: increase ÷ new price. From $45 to $50 that is $5 ÷ $50 = 10%. Lose 5% of those sales and revenue still rises from $13,500 to $14,250 a month — $750 more, $9,000 a year.

Most price increases lose far fewer clients than owners fear. The ones who leave over a small increase are often the ones least likely to rebook anyway.

Common questions

How many clients can I lose after a price increase and still break even?

Divide the increase by the new price. Going from $45 to $50 is a $5 increase on a $50 price, so you can lose up to 10% of those sales and still take the same revenue. Lose fewer and you come out ahead.

How much should a salon raise its prices?

Many salons review prices once a year and raise them in small steps rather than one large jump, often to keep pace with product and wage costs. A busy stylist with a waiting list is the clearest sign a price is too low.

Does a price increase change commission?

On a percentage plan, yes: commission is a share of sales, so staff are paid more on each higher-priced service. Remember to include it when working out what the increase is worth to the salon.

How do I tell clients about a price increase?

Give notice — a few weeks is common — say plainly what changes and when, and keep the explanation short. Clients who hear it from their stylist in person take it better than a sign at the till.

Related

CommissionBoard tracks each person’s sales per client and commission from your POS report, so you can see what a price change does to both.

See your salon's numbers live

We'll set CommissionBoard up with your POS and plan and show you the staff view in a 15-minute walkthrough.

A 15-minute walkthrough with your own numbers. No obligation.

Free to use, nothing to sign up for, and nothing you type into the calculator is sent anywhere — it all runs in your browser.