Do you want to know how much barbershop businesses make monthly? If YES, here is a quick analysis detailing the income potential of barbershop owners.
A barbershop is a business that offers hair grooming services to men. They cut, trim and shave hair and beard and equally offer other related services. A barbershop owner is tasked with managing his or her staff, handling administrative duties and marketing the business to customers.
As a barbershop owner, if you want your business to be successful, you have to be involved on a personal level. You should endeavour to spend most of the day working alongside your employees, or alternatively, you can hire a manager to handle the daily responsibilities if you can’t do so.
Every barbershop owner expects to make some profit off the business both as a barber (if they know how to barb) and as a shop owner. If you want to start a barbershop and you are wondering what your profit margins will look like, here a is a rough estimate that would help in your speculations.
How Much Do Barbershop Owners Make Monthly/Annually?
When considering what a barbershop can earn both monthly and yearly, you should know that this depends on certain variables. A barbershop owner typically rents space (chair space) out to a few independent contractors, who agree to pay a certain percentage of each hair cut in exchange for the space.
Commissions vary greatly but often range between 30 to 70 percent of a barber’s profits. Generally in the United States, as of March 29, 2020, the average annual earning of a Barber Shop Owner in the United States is $53,654 a year. This is the figure you get when taken generally, it should be known that various states in the United States have their average barbershop business earnings and this varies depending on population and various other factors.
For example, the average income for a barbershop owner in New York City is $35,000 per year, $28,000 per year in Los Angeles, $26,000 per year in Dallas, Texas, $24,000 per year in Kansas City, Missouri, and $32,000 per year in Atlanta.
Keep in mind, many factors influence how much a barber shop owner makes. For starters, one may purchase an existing shop or start a new shop from scratch—both of which can cost a lot. There’s also rent to factor in, as well as supplies and equipment. Typical costs of starting a barbershop range between $120k to $150k. Before you start making any money, you must first make back the initial investment.
So How Much Money is a Barber Shop Owner Capable of Making?
The answer depends on three factors:
- How many customers can you bring in the door? (as much as your shop can handle)
- How much does the shop make on each service provided?
- How much overhead expense do you need to cover, including repaying yourself or your lender?
Let’s take for example a typical barbershop;
Lets say the store opens from 9 am to 7 pm for 30 days per month. That would come up to 300 hours per month per chair, or 1200 hours total. If each service takes 30 minutes, that’s 2400 services. If it charges $25 per service, that’s $60,000 in revenue. If it pays barbers 70%, the shop makes 30%, or $18,000. If the lease and other overhead expenses are $4000/month, the shop could make $14,000/month.
Of course, the shop isn’t going to have every chair filled every 30 minutes, for 10 hours every day. This is especially true when it’s just starting out. It will take time to build clientele. So, let’s change the variables. Let us use one service per hour instead of half hour. You get 1200 services per month x $25 per service x 30% shop share – $4000 overhead = $5000/month.
This is why it’s hard to say how much you can make as a barbershop owner owner. It depends on the above listed variables, and the number of customers you can bring in the door is by far the biggest variable. And you won’t know for sure until you actually open the shop.
The fact has already been established that what a barbershop owner can make in a month or year depends entirely on the owner of the business. It depends on how skilled you are as a shop owner. It depends on how well you can get customers in the door, attract good barbers, and manage your expenses.
By the way, a skilled barber doesn’t necessarily make a skilled shop owner, but the good news is that you can learn to be a skilled shop owner. It is entirely possible to make much more as a barber shop owner than a barber working in someone else’s shop, so give it a try.