Most salon owners pay themselves 10 to 30 percent of gross revenue, depending on the business model. A commission salon doing $25,000 per month might realistically take home $3,000 to $6,000 after payroll. A booth rental salon with 8 renters at $300 per week has $9,600 coming in before any expenses, so owner pay could reach $4,000 to $6,000 comfortably. The mistake most owners make is paying themselves last and treating their income as whatever is left. Pay yourself first like any other fixed expense. Set a target take-home, work backwards to the revenue required, and manage expenses around that number. When my own chair math came up short in 2005, raising my men’s cut from $32 to $47 added $1,100 in one week. Your salary is not a reward. It is a cost of doing business.
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How much do salon owners make?
Salon owners typically take home 10 to 30 percent of gross revenue, which lands most owners between $40,000 and $90,000 a year depending on the size of the business and the model. A commission salon doing $25,000 a month might net the owner $3,000 to $6,000 a month; a booth rental salon with 8 renters can reach the same range on rent alone. The trap is treating owner pay as whatever is left over. Set it as a fixed cost and build the business around that number.
What is a good salary for a salon owner?
A good salon owner salary is one you set on purpose, usually 10 to 30 percent of gross revenue, and pay yourself first like any other fixed expense. For many single-location salons that means a target take-home of $50,000 to $80,000, then managing costs to protect it. If your business cannot cover a fair owner salary and still keep a 10 to 15 percent margin, the problem is pricing or overhead, not how little you are willing to accept.