What is cost-plus pricing?

Cost-plus pricing calculates the total cost of delivering a service (products + labour + overheads) then adds a profit margin percentage on top. For example, if a treatment costs £20 to deliver and you want a 25% profit margin, the price would be £20 / 0.75 = £26.67. This ensures every service is profitable.

Should I price based on costs or market rates?

Use both approaches. Cost-plus ensures profitability — never price below your costs. Market-rate comparison ensures competitiveness. The ideal price is at or above your cost-plus price AND competitive with local market rates. If the market rate is below your costs, you need to reduce costs or differentiate your offering.

How do I find local market rates?

Research competitor prices by checking their websites and social media. Visit competing salons as a mystery shopper. Ask clients what they have paid elsewhere. Check salon booking platforms for listed prices. Survey 5-10 comparable salons in your area to get a reliable average. Update your research annually.

When should I raise my prices?

Review prices annually at minimum. Raise prices when: product costs increase, you gain additional qualifications, your experience level grows, demand exceeds capacity (fully booked weeks in advance), or when comparable salons charge more. Give clients 4-6 weeks notice before a price increase. Most clients accept reasonable increases.

CutCalcs

Treatment Pricing Calculator — Profitable Pricing

Calculate profitable treatment prices using cost-plus and market-rate methods.

Product Cost

Service Time

Your Hourly Rate

Including employer costs

Overhead %

Typical: 25-35%

Local Market Rate

Optional — competitor price

How We Calculate This

This calculator determines a profitable treatment price using cost-plus pricing methodology, then compares it against local market rates if provided.

The formula

Total cost = Product cost + Labour + Overheads

Cost-plus price = Total cost / (1 - Profit margin)

Suggested range = 20-30% profit margin

Frequently Asked Questions

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Last updated: February 2026

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