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)

Cost in your local currency

Retail Price

Price the client pays

Units Sold Per Month

Value for 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.