Salon Business, Ohio Laws and Rules
Salon Business
Money math
Pricing questions reward clean arithmetic. Know cost-plus markup and keystone pricing (double the product cost to set retail). For a target margin, price = cost ÷ (1 − margin). Example: a retail item costs $8; at a 40% margin, price = 8 ÷ 0.60 = $13.33. Keystone would simply be $16. Also understand service pricing (labor + overhead + product + profit), back-bar cost control, and inventory turns.
Compensation models
Compare commission (employee earns a percentage of service revenue; salon carries costs), hourly plus commission, salary, and booth rental (the renter is typically an independent contractor who sets hours, pays rent, and handles their own taxes and insurance). Questions test who sets prices, who withholds taxes, and who is covered by the salon's insurance.
Operating the business
Consultation and client record cards build retention; rebooking and reminder systems do more for revenue than discounting. Know basic marketing, referral programs, and social-media etiquette. On the compliance side: OSHA rules on hazard communication and SDS access, properly labeled bottles, safe storage, and accurate advertising (no guarantees you cannot keep).
Traps
Scenarios that hand you a product cost and ask for retail price without stating the method - decide whether the question wants keystone (×2) or a margin formula, and read the wording twice. Another common trap: assuming a booth renter keeps 100% of the ticket with no expenses.
Rule of thumb
Keep product cost for a service under roughly 10% of the service price; if it creeps higher, raise price or shop smarter.
Ohio Laws and Rules
Who regulates what
Cosmetology in Ohio is governed by Chapter 4713 of the Ohio Revised Code, with detailed rules in Chapter 4713 of the Ohio Administrative Code, administered by the Ohio State Cosmetology and Barber Board. Know the license categories the Board issues - cosmetologist, esthetician, manicurist, hair designer, natural hair stylist, barber, instructor, and salon - and that each has its own scope. A cosmetologist's scope is the broadest operator license; an esthetician or manicurist may not perform hair services, and a hair designer may not perform the full range of services a cosmetologist may.
Core compliance points
- Practice only within your license, and only in a licensed salon.
- Keep your license available/displayed as the rules require, and carry proper identification.
- A salon operates under a salon license and must meet sanitation, equipment, and facility standards.
- Sanitation rules mirror the science domain: clean, disinfect, single-use for porous items, label contact times.
- Advertising must be truthful; unlicensed practice and aiding unlicensed practice are violations.
- The Board can fine, suspend, revoke, or refuse licensure for violations.
Traps
Questions quote hour requirements or fees that shift over time; the safe approach is to know the structure (licensure by training hours plus examination) and confirm current numbers with the Board before your exam. Another trap: assuming a rule from another state applies in Ohio.
Rule of thumb
If a scenario involves a person performing a service without the matching license, the answer is a violation - for both the unlicensed person and the licensee who allowed it.