# How much does the haircut cost? Why so expensive?

How much does the haircut cost? Why so expensive? – HPPO

A few weeks ago there was a post on social media, republished dozens of times, addressing the response that a London tea house owner gave to a client who complained about the high price of a cup of hot water with lemon. I immediately thought of the salon services.

Recently I went to visit a salon where the female haircut service has the established value of R\$ 65.00. Exactly that day a client had asked the owner the reason for such a βhighβ price.

I’ll tell the story of what the salon owner replied to the client:

1. Each hairdresser is a company and rents a specific space to work. The rent has a fixed and a variable installment. The fixed amount corresponds to R\$1,000.00 per month and the variable is 10% of the hairdresser’s income.
2. We have jointly established an average withdrawal criterion for hairdressers that should not be less than R\$3,000.00, plus a company’s charges, which are around 17%. In order for the impact on the final price to be reduced, we considered in the price calculation only BRL 1,500.00 of this BRL 3,000.00
3. Each professional has an average expense of R\$800.00 with transportation and another R\$750.00 with food, which are considered costs of their companies.
4. Before the variable installment, the fixed cost of a hairdresser is therefore R\$ 4,050.00.
5. Considering that these professionals perform an average of 280 services per month, the fixed unit cost that we need to allocate to each service is R\$14.46 (R\$4,050.00 divided by 280).
6. On this amount we need to put the cost of the products and accessories we use to provide the service, which are in the range of 10.55 (towels, shampoo and conditioner). This brings us to a cost of BRL 25.01, which is the sum of the fixed unit cost of BRL 14.46 and the direct cost of BRL 10.55.
7. A reserve value of 10% was established on individual sales for the investment fund (furniture renovation, installations, courses, innovations) and Marketing, and another 4% to cover the average financial costs of the operation, including default. We consider a percentage of 20% of profitability for each professional to form the revenue of their companies.
8. With this, the value found was 64.12 (which is obtained by dividing the BRL 25.01 cost and the result of 1-0.61, that is, 0.39, knowing that 0.61 is the sum of variables I divide by 100), which we round, for security, to BRL 65.00.

It’s a story, because no one wants to know about it, nor was the owner’s response. Kicking is always the most used path.

Each salon can offer a specific working condition for its professionals, which also requires particular calculations, which need to be constantly revised.

Many salons operate with service prices below the cost line and unfortunately owners and professionals often do not know how to respond to complaints about high prices. The consequence is that many salons reduce prices simply because they cannot explain why a service has a certain value based on a calculation, which allows each person to have a fair result.

When prices are practiced below the cost line, it is a sign that someone is making an investment, or is simply having a loss that they do not know about. This ends up putting everyone at risk.

From the example, it is possible to be sure that each salon has a specific work proposal and a financial reality. It is counterproductive to copy prices and any resemblance to reality will be coincidental.

Check more articles in our categories Hairstyles & Luxe et encore 90s Outfits.

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