Have you ever wondered why some days your salon is fully booked, yet by the end of the month your wallet still feels unexpectedly light? Many can relate to this feeling — often we focus on what’s trendy or most inquired about… But are those the services that actually bring in profit? This might be where the greatest growth secret for a small beauty salon lies.

How to Identify Which Services Are Truly Profitable?

Let’s start with a simple experiment. Think about the last time you offered a service and later hesitated: was that couple-hour hairstyling session or intricate manicure really worth the time and materials? Or perhaps those quick brow treatments that seem minor on the price list but, due to their frequency, actually generate solid income?

The key is the profit margin. This shows you how much you really keep from each service after covering all direct costs like supplies, wages, and even a portion of utilities such as water and electricity. Whether you own and work daily in the salon or manage it remotely, it’s important to honestly account for all expenses — including your own labor time.

First Step: Put the Numbers Honestly on the Table

Try this exercise:

  1. Make a list of your services — haircuts, coloring, manicures, brows… everything on your price list.
  2. Next to each, write down the service price, material cost, and labor cost in dollar value (wages paid to employees or to yourself).
  3. Calculate: price – material cost – labor cost = profit.

For example: If a chemical perm costs the client $60, material costs are $15, and labor costs (for you or your employee) are $20, your profit is $60 – $15 – $20 = $25 per session.

It’s really that simple at first! Then, look into how often each service is actually performed. Some trendy services might be rare and pricey, but a significant share of your revenue often comes from everyday treatments.

Now Statistics Play a Huge Role

Next comes the infamous “magic of numbers” — statistics. Maybe you’ve already started tracking numbers in Excel or a notebook, but why not use modern tools? For instance, SalonLife software lets you instantly see at the end of each month (or even every Monday!):

  • Total revenue per service
  • Costs (including detailed material expenses)
  • How many times each service was performed
  • Employee labor hours

With everything in one place, you avoid the misleading impression that a highly booked service is always profitable. The data might reveal that you could spend the entire day styling or painting nails but take home a modest amount — while a less popular service could actually be much more lucrative.

For further reading: which services are most profitable for small salons in Europe? Check out the SalonLife blog summary on profitable services here.

What If Profitability Is Not So Easy to Assess?

This is where some detective work comes in. Certain services may seem marginal at first but consistently attract new clients — such as brow shaping. Each visit might yield a small profit, but these are true “magnets”: they draw people who haven’t previously visited your salon, and while there, they often book a haircut or buy products.

Therefore, assessing profitability requires looking at the bigger picture:

  • Which service brings in the most monthly revenue?
  • Which service yields the highest profit per sale?
  • Which service attracts the most new clients?
  • Are some lower-profit services excellent complements — for example, a quick treatment that’s almost always accompanied by a pricier procedure or recommended product?

Never underestimate the value of these “magnets”! Here, too, SalonLife CRM helps — track what clients purchase sequentially and what encourages them to try more services later.

How to Use This Data to Your Advantage?

Once you’ve made sense of the numbers, it’s time to take action. Ask yourself:

  • Which services do you want to highlight more?
  • What should you market, discontinue, or offer less frequently?
  • Is it worth spending time and money on a rarely booked, low-profit service?
  • Maybe it’s wiser to turn some specialized treatments into add-ons rather than standalone services — for example, offering a thorough scalp massage alongside a haircut instead of as a separate service?

Of course, don’t disregard your customers when focusing on profitability — their feedback can reveal what keeps you competitive or brings in new referrals.

And most importantly: don’t fear narrowing your service selection or shifting your emphasis. Successful salons have done exactly that — growth happens when you invest the right energy and attention where it counts.

In Summary

Running a small salon means limited time and budget, so critically examine which services truly deliver enough profit to build your business upon. Use tools (like SalonLife reports) as if you had a friendly business advisor always in your pocket. This way, you can create a personalized, strong, and thoughtful salon business that brings joy both to clients and to your work!

Want to learn how some salons quickly and smartly grow profits with fresh trendy services? We’ll cover that in the next article!