Salon Business Practices and Retail
Pricing your work
Price from three inputs: your costs, your time, and the local market. Cost-plus pricing totals product, supplies, rent, insurance, and your target hourly wage, then adds profit. Time-based pricing is essential in nails because services are labor-intensive - an underpriced three-hour set of sculpts destroys your hourly rate. Track how long each service actually takes; appointment length is a pricing decision, not just a scheduling one.
Markup versus margin
These are different numbers and questions exploit the confusion. If a product costs $12 and you apply a 2.5x markup, the price is $30, gross profit is $18, and the gross margin is $18 ÷ $30 = 60%. A 100% markup (keystone) means price is double cost, which is only a 50% margin. Retail generally needs at least keystone pricing to cover shelf space, shrinkage, and card fees.
Inventory and records
Use first-in, first-out rotation, set par levels (reorder when stock hits a minimum), and record purchases so cost of goods stays visible. Keep client records, appointment logs, and financial records; understand the difference between booth rental (you are self-employed, responsible for your own taxes and supplies) and commission or hourly employment. Retail product sales are generally subject to Kansas sales tax while personal services generally are not - confirm current guidance from the Kansas Department of Revenue.
Traps and a rule of thumb
Watch for answers that price by copying a competitor, confuse markup with margin, or oversell product a client cannot maintain.
Rule of thumb: keystone the retail shelf, price services by the hour you need to earn, and reorder at par - not when the shelf is bare.