What is a good retail margin for salon products?

A healthy retail margin for salon products is 40-60%. This means if you buy a product for £8, you sell it for £16-£20. Some premium brands have recommended retail prices (RRP) that give 40-50% margin. Own-brand or unbranded products can achieve 60%+ margin. Never sell below 30% margin.

What is the difference between margin and markup?

Markup is the percentage added to the cost price: a £10 product sold for £20 has a 100% markup. Margin is the profit as a percentage of the selling price: the same product has a 50% margin. Markup is calculated from cost; margin from selling price. The same profit looks very different expressed as each.

How can I increase retail sales?

Display products at the checkout and styling stations. Recommend products during the service ("I'm using X on your hair today — would you like to take one home?"). Offer loyalty discounts. Create product bundles at a small discount. Set stylist retail targets with incentives. Educate clients on how to use products at home.

What retail revenue should a salon aim for?

Industry benchmarks suggest retail sales should make up 10-20% of total salon revenue. A salon turning over £10,000/month should aim for £1,000-£2,000 in retail sales. Retail has higher profit margins than services (since there is no labour cost per unit), making it an important additional revenue stream.

CutCalcs

Retail Calculator — Product Revenue & Margins

Calculate retail product revenue, margins and sales targets for your salon.

Cost Price (trade)

Retail Price

Units Sold Per Month

Monthly Profit Target

Optional — units needed to hit target

How We Calculate This

This calculator determines profit per unit, margin percentage, markup percentage and monthly revenue projections for retail product sales.

The formulas

Profit = Retail price - Cost price

Margin = (Profit / Retail price) x 100

Markup = (Profit / Cost price) x 100

Monthly revenue = Units sold x Retail price

Frequently Asked Questions

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Last updated: February 2026

All calculations are estimates. Always perform a strand test before chemical services.