How much does a barbershop make?

The barbershop industry in the United States has been growing steadily over the past few years, fueled by increasing demand for grooming services and the resurgence of classic barbering trends.

Traditional barbershop earnings and business models have evolved, blending classic techniques with modern trends to meet customers’ diverse grooming needs.

The industry has grown significantly due to increasing awareness of personal grooming and style among men.

With the rise of the self-care culture, barbershops are no longer just about a simple haircut—they now provide a range of services, including beard grooming, facials, scalp treatments, and even premium experiences like hot towel shaves and head massages.

The profitability of a barbershop depends on several factors, including location, customer service, and branding.

Many barbershops thrive in urban areas with high foot traffic, but suburban and small-town shops can also attract loyal customers by creating a welcoming atmosphere. Skilled barbers are at the heart of a successful shop, as customers often return for consistent, high-quality services.

Additionally, a strong online presence and social media marketing have become essential for barbershops to attract new clients and showcase their work. Many barbers use Instagram, TikTok, and Facebook to share haircut transformations, promote special offers, and engage with their audience.

The business model of a barbershop can vary widely, ranging from traditional walk-in establishments to appointment-only luxury salons.

Some shops operate as sole proprietorships, while others are part of franchise chains. Many barbers also rent chairs in established shops, allowing for a flexible and profitable business structure.

With the average haircut price ranging from $20 to $50, depending on the location and services, barbershops can generate consistent revenue. Additionally, selling grooming products such as hair styling gels, beard oils, and specialty shampoos adds another income stream.

Despite its profitability, the barbershop industry has challenges, including high competition, rising rental costs, and the need for continuous skill development.

However, barbershops that prioritize customer satisfaction maintain unique brand identity, and adapt to market trends often find long-term success.

In this article, we will explore how much a barbershop makes in the United States, considering revenue sources, expenses, and profitability.

bershop profit margin is directly linked to its pricing structure. Traditional haircuts typically range from $20 to $50, while premium services such as hot towel shaves, beard grooming, and scalp treatments can significantly boost earnings.

For instance:

• A barbershop that charges $30 per haircut and serves 20 customers per day would generate $600 daily, or approximately $180,000 annually (assuming 300 working days per year).
• Offering additional services such as beard trims, facials, or memberships can increase revenue streams significantly.

Factors Affecting Barbershop Revenue

The average income of barbershops in the United States is influenced by several key factors, including location, rent, labor costs, pricing strategy, competition, and additional revenue streams.

Understanding these factors is crucial for barbershop owners and entrepreneurs looking to maximize profitability while managing expenses effectively.

Location and Rent

One of the most significant factors affecting expenses is the location of the barbershop. A shop in a high-traffic urban area will typically pay higher rent, often ranging from $3,000 to $10,000 per month, whereas a shop in a suburban or rural location may pay as little as $1,500.

However, urban locations tend to attract more customers, which can lead to higher revenue and justify the increased rent costs.

Service Pricing and Additional Revenue

The average price of a standard haircut in the U.S. varies widely, from $20 in small towns to $50 or more in metropolitan areas.

Barbershops that offer premium services such as hot towel shaves, beard grooming, scalp treatments, and facials can significantly increase their revenue per customer.

Additional revenue streams such as selling hair care products, beard oils, and styling gels further enhance profitability. Many successful barbershops generate 10-20% of their revenue from product sales.

Labor Costs and Employee Compensation

Another major expense factor is labor costs. How barbers are compensated impacts a shop’s profitability—some shops pay barbers a fixed salary, while others operate on a commission basis, with barbers taking 40-60% of the revenue per service.

Many barbers also rent chairs for a fixed monthly fee, usually between $500-$1,500, which provides the shop with consistent income regardless of customer volume. 

Labor costs also include payroll for receptionists or assistants, adding another $2,000 to $5,000 per month. 

Equipment and Supplies

High-quality barber chairs, mirrors, and workstations are essential investments, with initial setup costs ranging from $10,000 to $50,000. 

Ongoing supply costs, including razors, clippers, styling products, and disinfectants, typically range from $500 to $2,000 per month.

Marketing and Competition

Competition directly affects a barbershop’s profit potential. In highly saturated markets, barbershops must invest in marketing, promotions, and unique service offerings to attract and retain customers.

Marketing expenses, including social media advertising and local promotions, can range from $500 to $2,000 per month. A strong online presence and effective branding help barbershops stand out and build a loyal clientele.

Customer Retention and Profitability

Providing excellent customer service generates repeat business and positive word-of-mouth referrals.

A barbershop with steady customer traffic of 20 clients per day, charging an average of $30 per service, can generate approximately $18,000 per month in revenue.

Conclusion

When combined with additional services and product sales, monthly revenue can exceed $25,000, resulting in net profits of $5,000 to $15,000 after expenses. 

By effectively managing costs, optimizing pricing, and maintaining high service standards, a barbershop can thrive and achieve long-term financial success.