A good net profit margin for a hair salon is 10 to 17 percent. Most salons land between 2 and 8 percent because owners undercharge, over-staff, or let supply costs creep past 5 percent of revenue. Commission salons typically run 8 to 12 percent when staffing is lean. Booth rental salons often clear 15 to 25 percent because the stylist covers their own supplies. Suite operators can reach 30 percent or more, but volume is lower. The fastest way to find your real margin is to subtract all expenses from gross revenue, then divide by gross revenue. In 2005 I did the math on my own chair and found a $32 men’s cut left me just $15.50 in real profit after rent, product, and taxes. That number changed how I priced everything.